New House Query

[Anonymous]

Can you explain why she can’t rent the house out for six months? She was already renting it, so why does it matter? Was she violating the mortgage terms by renting it? If so, what’s stopping her from continuing to violate the terms by renting it to someone else?

This situation makes little sense.

[Anonymous]

Anonymous wrote:She can’t force someone to live in her house. Your sister should find a new illegal tenant to replace the illegal friend tenant. Sounds like a stupid thing to do but clearly she can afford to buy a second house so she’ll survive with a loss for a few months.

OP Here:

She doesn’t personally know anyone who would rent out the house - she could find someone to rent if she posted an ad for rent but considering she is not permitted to rent it out for six months after her friend vacates it is too risky.

I know my sister took a huge risk to help her friend out…..she even did something illegal in order to do so.
No good deed goes unpunished.

Is my sister 100% in the wrong here??
Is her soon to be ex friend (I assume) completely faultless?

Because my parents think so.

[Anonymous]

She took a risk to rent to her friend illegally but now she’s decided to follow the law. Ok.

[Anonymous]

Anonymous wrote:Can you explain why she can’t rent the house out for six months? She was already renting it, so why does it matter? Was she violating the mortgage terms by renting it? If so, what’s stopping her from continuing to violate the terms by renting it to someone else?

This situation makes little sense.

OP Here:
Because in our state (CA) when you purchase a house w/a mortgage, you are required to reside in the house for the first 12 mos.
My sister wanted to help out her good friend so her friend agreed to have her utilities in my sister’s name, etc. to make it look like my sister was living there.

That is likely why my sister had no written lease - because it likely could not be legally enforced.

[Anonymous]

Anonymous wrote:

Anonymous wrote:She can’t force someone to live in her house. Your sister should find a new illegal tenant to replace the illegal friend tenant. Sounds like a stupid thing to do but clearly she can afford to buy a second house so she’ll survive with a loss for a few months.

OP Here:

She doesn’t personally know anyone who would rent out the house - she could find someone to rent if she posted an ad for rent but considering she is not permitted to rent it out for six months after her friend vacates it is too risky.

I know my sister took a huge risk to help her friend out…..she even did something illegal in order to do so.
No good deed goes unpunished.

Is my sister 100% in the wrong here??
Is her soon to be ex friend (I assume) completely faultless?

Because my parents think so.

Why does she have to wait six months to re rent? That makes no sense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can you explain why she can’t rent the house out for six months? She was already renting it, so why does it matter? Was she violating the mortgage terms by renting it? If so, what’s stopping her from continuing to violate the terms by renting it to someone else?

This situation makes little sense.

OP Here:
Because in our state (CA) when you purchase a house w/a mortgage, you are required to reside in the house for the first 12 mos.
My sister wanted to help out her good friend so her friend agreed to have her utilities in my sister’s name, etc. to make it look like my sister was living there.

That is likely why my sister had no written lease - because it likely could not be legally enforced.

Oh, got it. Your sister was doing mortgage fraud. Jfc.

[Anonymous]

^^ Also she doesn’t want to rent it out illegally again since she would have to risk getting in trouble so her hands are tied.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can you explain why she can’t rent the house out for six months? She was already renting it, so why does it matter? Was she violating the mortgage terms by renting it? If so, what’s stopping her from continuing to violate the terms by renting it to someone else?

This situation makes little sense.

OP Here:
Because in our state (CA) when you purchase a house w/a mortgage, you are required to reside in the house for the first 12 mos.
My sister wanted to help out her good friend so her friend agreed to have her utilities in my sister’s name, etc. to make it look like my sister was living there.

That is likely why my sister had no written lease - because it likely could not be legally enforced.

Oh, got it. Your sister was doing mortgage fraud. Jfc.

Yes mortgage fraud indeed. She lied to the bank that she intended on living in the house and instead she was using it as an investment property which she cannot do!

Karma!
She should be cited or even jailed for what she did.
Because a lot of honest families deserve to be approved for a mortgage and many do not because of sketchy people like your Sis!!

[Anonymous]

Anonymous wrote:^^ Also she doesn’t want to rent it out illegally again since she would have to risk getting in trouble so her hands are tied.

She should be grateful she wasn’t caught for fraud already.

[Anonymous]

It looks like these are her options;

-Rent it to someone else illegally. Find someone through word of mouth rather than a posted advertisement.

-Sell at a loss.

-Cover the mortgage for six months, house sits empty until it can be legally rented.

-Move out of her current residence and into this house, then rent her primary residence.

As for whether her friend is the wrong, I think not. It sounds like her friend’s family was not in a good financial place, and it would be ridiculous to turn down a job that could change that for the long term, although it stinks for your sister.

Importantly, I don’t think it matters if the friend was in the wrong because, as you point out, your sister can’t exactly prevail in court when she was committing mortgage fraud and had no written lease.

[Anonymous]

This story kind of makes me mad.
People like your sister are out there committing fraud by lying to banks to get loans while other hard-working folks are getting turned down for home loans who are more honest and actually have integrity.

** Her friend was in a bad position - being poor does not mean she was a bad person.
If your sister truly wanted to help her friend she could have helped her get a job or something.
No one in their right mind would take out a house loan by lying to the bank.

I think the friend was right. Your sister was just going to use her friend to pay her mortgage and she would have gotten a free house out of the deal while her friend ended up with nothing.
That would be unfair for your sister to get a free house without paying a dime for it.

[Anonymous]

So she has declared primary residence in both her houses?

[Anonymous]

Why didn't your sister buy the 2nd house and tell the mortgage company it would be a rental/investment property?? At least it would be clean and legal.
Sure, the loan may be at a slightly higher rate, but she could roll-over the higher monthly payment to her friend when said friend goes to pay her rental fee.

[Anonymous]

Anonymous wrote:Your sister is a massive fool with a huge appetite for risk.

She’ll just have to rent it to someone else.

+1

and never mix business with family or friends…

[Anonymous]

How was the friend able to establish an in-home daycare in a residence that she wasn't legal to live in the first place?
I'm guessing the daycare want bonded, o sure, or licensed?

Your sister is playing with fire in so many ways. At least now, the illegal occupancy and her illegal business are no longer. Your sister should feel relieved and not angry