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After your loan modification is complete, can you rent your home to another party within the next 40 years (length of loan)?

Sacramento, CA |

Our Home Affordable Modification Program (HAMP) Loan Agreement states "I agree as follows: if all or any part of the Property or any interest in it is sold or transferred without Lenders prior written consent, Lender may, at its option, require immediate payment in full.....secured by the Mortgage."

Do we need written consent from our lender to enter into a lease with someone else to occupy our property? We don't plan to stay in our property for the next 40 years and our loan modification will be finalized this month.

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Attorney answers 2


Renting the property probably doesn't constitute a "transfer" under that langage you quoted, but loan mods are often restricted to primary residences, not income property, so to make sure you don't violate the terms of your loan mod and commit fraud by not even intending to honor its terms, have a lawyer review the entirety of the document you plan to sign to see what's being agreed to.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.


A rental is not a a transfer of ownership although a very long term lease might be constitute a transfer.