I Just Had a Weird Phone Call

[Leigh]

Backstory: My husband sprayed our weeds with RoundUp, thinking it was just a regular old weed killer. The front yard looks like crap now, with all the dead grass. The backyard, of course, looks like there is a daycare center in the house, and we have kids around here all day, every day. Toys in the front and back on the weekend, in the back on the weekdays. Very "lived in" in the summertime is a way to describe our property (people congregate here, kids are ALWAYS here).

Anyway, about the call: My insurance agent just called to ask if I had moved out of my house. I said no. He got a call from the insurance company's home office saying that my mortgage company alerted them that they believed we were renting out our home! I was confused, but then thought, when you look at OUR yard (NO landscaping-we tore the dead stuff out and are waiting for the landscapers to come and put the new stuff in, dead grass patches all over, toys all over the yard every day...I guess it does look like there isn't much "pride in ownership" out there sometimes. I'd rather take pride in spending time with the kids, I guess, and there's not much I can do about it but wait for the landscapers to show up and for the grass to grow back.

Thought it was strange, though, that this had to have went through at least 4 people, when the mortgage company could have just called or emailed and ASKED if we were still in the house! I'm wondering if someone on our block reported our yard to the city (it's not unmowed, full of weeds, we pick it up daily-not breaking any rules or laws), and this his how the ball started rolling here? I don't know, but found it weird.

[Thriftylady]

That is strange. Hopefully it is all sorted out now.

[Controlled Chaos]

That is so weird!

Though to make you feel better - my DH did that to our backyard last year...I was super annoyed. It took all summer to try and bring it back to life and there are still some struggling patches Hope yours bounces back easily!

[VWMom]

Is your mortgage behind? My husband has worked in the mortgage field for close to 30 yrs. when a loan is in arrears, the first thing a mortgage company does is contact the insurance co to do a check on the collateral property

[Leigh]

Is your mortgage behind? My husband has worked in the mortgage field for close to 30 yrs. when a loan is in arrears, the first thing a mortgage company does is contact the insurance co to do a check on the collateral property

No-that's what's making me wonder if someone turned us in to the city...I don't know why else they would have been alerted.

[Second Home]

Insurance companies do drive by's to check on properties they insure . So the insurance company calling makes sense to check if the property was being rented , renting out a property would by a different policy than a owner occupied property( and cost more) .

If someone called the city I would think the city would contact you directly .

The mortgage company would not care if you rented the property as long as they get paid on time . So the mortgage company being involved is weird.

[Meeko]

Are you sure it was actually the mortgage company and not some neighbor trying to be sneaky and find out if you were renting?

[Alwaysgreener]

Are you sure it was actually the mortgage company and not some neighbor trying to be sneaky and find out if you were renting?

It would have to be someone that knew who her insurance company is and possible account number.

If it was me I may call my mortgage and insurance company with follow up questions.

[DaveA]

It would have to be someone that knew who her insurance company is and possible account number.

If it was me I may call my mortgage and insurance company with follow up questions.

This, and I would be checking my credit report. This seems like something that could be a part of identity theft.

[Leigh]

This, and I would be checking my credit report. This seems like something that could be a part of identity theft.

Oh, great. I never thought of that. I'm going to check it.

[VWMom]

Insurance companies do drive by's to check on properties they insure . So the insurance company calling makes sense to check if the property was being rented , renting out a property would by a different policy than a owner occupied property( and cost more) .

If someone called the city I would think the city would contact you directly .

The mortgage company would not care if you rented the property as long as they get paid on time . So the mortgage company being involved is weird.

Yes-the mortgage company WOULD care! Many mortgages restrict a dwelling from being rented out! A mortgage on a rental property is a higher interest rate than an owner occupied home. A lot of people do not realize that if you rent a home without first making sure that it is ok with your mortgage company, you risk being in violation of your loan and a mortgage company can "call" the loan due

[Pestle]

Yes, and some folks--like myself--have a type of government grant that only applies to homeowners who occupy their homes. If I were to move out and rent the home within the first 9 years of my mortgage, I'd have to pay the grant back to the state of Tennessee.

[Second Home]

Yes-the mortgage company WOULD care! Many mortgages restrict a dwelling from being rented out! A mortgage on a rental property is a higher interest rate than an owner occupied home. A lot of people do not realize that if you rent a home without first making sure that it is ok with your mortgage company, you risk being in violation of your loan and a mortgage company can "call" the loan due

I have had 4 different mortgages in my life and none have had a restriction about renting my property after having been an owner occupant for a few years. I have seen where the rental or owner occupied status will affect the interest , insurance and tax rate .
I guess just like everything else you need to read your contract and not sign if you do not agree with it .

I just closed last week on a house and the only restriction was the house needed to be owner occupied for 12 months after that no restrictions at all.And that was from the state not the lender and it was for the tax status.

[ChelseaB]

Yes, and some folks--like myself--have a type of government grant that only applies to homeowners who occupy their homes. If I were to move out and rent the home within the first 9 years of my mortgage, I'd have to pay the grant back to the state of Tennessee.

Yup, this is 100% accurate.

My first home was purchased with a specific "First-Time Home Buyer" company. My contract restricted me from renting out my home for a specified amount of time, otherwise, I would have to repay the higher interest amount, fees, etc. also, seeing as I received a tax credit as a first time home buyer, I would have had to pay back the credit if I resided anywhere other than the home during a certain time period after receiving it.