Real Estate Law
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Thank you for the reply. Circumstances change, so it would not be reasonable for a lender/bank to expect that a second home, would always be used as such and never rented out, long or short term. A lot also has to depend on the ability of the bank to discover this, which is why I asked where it would be advertised and if they would see it and even check to see. the key thing is your intent at the beginning, when you took the loan. It would be one thing if you started renting it immediately after closing but if you could show that circumstances changed, you can not afford the mortgage without this or there was a change which resulted in this, it should not be an issue. Moreover, a few weeks opposed to a year rental, could also make a difference and it would be at your discretion to even say anything.
A party would need to contact their lender and advise them of the change in circumstance and the situation and see if good cause can be shown. As you shared, your intent when you took the loan was to use this as a second home and not rent it out. However, if you can show a need for this or a change, the bank may allow it. As stated above, it would be at your sole discretion to even say anything. You can contact them and advise them of the same and see how they respond and if they will modify the usage of it and allow it. If not, you could try and rent it short term for those few weeks and shift the burden to them, to find out and discover it. Just because many people do it and do not say anything, does not mean it is the proper procedure, so it is up to you to decide if you want to be forward with them or let them address it with you, if and when they find out and if so, they may give you notice first, to cease it. Seeing how you are not looking to lease the home for a year at a time and just for a few weeks, it should be fairly easy to remedy this.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!
You want to read the closing documents which you signed. If it says you need to disclose any change, you would need to, legally. However, if you do not say anything and rent it short term, they would have to catch you and see that this property is being for short term rentals. If it will only be for a few weeks once a year, it would be hard for them to find out unless it was perfect timing and someone from the bank happened to see this, in a search.