Let me explain, I'm a hard money lender that funded a loan as a non consumer business purpose loan in Virginia. All the signed and notarized documents state the loan is strictly for business purposes and the borrower will NOT be living in the home. Two months after the loan closed I was notified the borrower actually moved back in the property. Now 8 months have went by and they are on time with payments, no issue there. But my question is can I get in any trouble by them now using the property as their primary residence? Also am I the lender violating any laws?
AVVO is designed and good for simple, general questions that will get you to the 'next step' for legal situations. Sometimes all people need is a simple answer. From the facts you’ve given, it seems that you need a lot more than an internet answer. Find and sit down with an experienced attorney in your area – AVVO has a ‘search’ feature that can help you.
If you're doing 'hard money lending' you should have a lawyer on retainer to advise you.
Answers provided are general in nature and usually based on Virginia law. If I answer something posted from another state I'm probably out on a limb. Reliance on any answer posted here is at the sole risk and responsibility of the user, and in no way creates or implies an attorney client relationship with the author, his firm, staff, family or even his dog. And isn't it silly that we have to cover our *(&%$ with disclaimers in case some fool wants to blame me when they screw up? Reading any answer means you agree with the above.
It will depend on the volume of loans you do in the state and what the loan terms are. I recommend you seek legal help to review your documents. You are probably fine. However, without having a fuller picture of your business practices and the nature of the loan.
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