Question: I bought a condo in July 07' using funds from a City of Phoenix bond program. I was unaware of a stipulation stating that the owner must occupy the unit for the life of the loan. I was laid off from my employer and I have had to relocate to Texas for work. Now the mortgage company is stating that they can accelerate the loan pay-off requiring me to pay the loan in full. I pay my mortgage payment each month, how can they do this?
Answer: You should note that they said they "CAN" accelerate the loan, not that they are going to. In these economic times, it is unlikely they would risk trying to collect the entire balance of the loan when you are paying timely. With that being said, you did enter into a contract where a term of the contract required owner-occupancy of the property. Your ignorance of that stipulation is not a valid objection, and the mortgage company does have the ability to accelerate the loan. I would recommend working with the mortgage company towards an amicable solution. They are legally "in the right," but you can appeal to their pocketbooks.
March 09, 2009