How long after mortgage is signed can you leave your job?

Question

We recently bought a house through an FHA program, and we needed both mine and my husband's income to qualify for this house. At the time of closing, two weeks ago, I was still working full-time. I started graduate school full-time and I have since left my job (technically I'm still there due to some vacation I'd accrued that I'm using). Today, I get a call from my mortgage lender requesting employment verification to "make sure I'm still at my job." Is there some reason that I need to still be at my job after the papers are signed? As long as we are paying our mortgage on time, can the bank foreclose or take other action if I leave my job? Please help!

Answer 1

I don't think there is any specific time limit and if you didn't sign anything saying you planned to work for however long I don't see how they could enforce any penalty against you if you quit.  In fact it was up to them to ask you if you planned to still be there some time later, I mean assuming you were up front about your situation then you did nothing wrong (ie if they just never asked the quesiton how ling will you work there, its not your fault).

Anyhow, you are technically still working there, and no sense in making waves, so I'd just provide them proof that you are still there (will your employer give you something), but just don't need to mention that this is your last week, or anything.  If it does come to it I'd also tell them that you quit your job very suddenly to pursue your education - no need to mention you knew you were quitting when you got the loan, and people quit/ get fired from jobs all the time.

Answer 2

I have never heard of such a thing??  Usually after the closing, if you make on time in full payments, you never hear from them again.  If you are making the payments on time, they can't do anything if you are no longer employed. They would have no reason to foreclose or take other legal action against you if you are current with your payments.  You name is on the deed, it is yours.  They can't just step in and take the property back just because you are not longer employed.  If that was the case, a lot more people would be losing their properties.  Actually I would have lost my house also.

Answer 3

Legally I do not think there is anything they can do if the mortgage payments are paid on time. I mean, they can't come throw you out because you don't have a job. They are probably just working on all the final paperwork and need this. I would just tell them that I had started graduate school full time and i am no longer employed.

Answer 4

I work for a lender and we usually re-verify employment after the loan funds.  If you quit just a few weeks after signing, before making payments that looks EXTREMELY fishy... whether or not you meant it to be.

Dependent on the lender, they may require you to re-qualify or make the loan due payable thinking you were just lying to get the loan.  I know that's probably not the scenario, but because people have done that, now they have to anticipate it.  Our company would probably make your loan due payable in full within 30 days.  That means you'd have to either refinance very quickly or come up with the loan balance.

I would make sure all your payments are 5 days early to the mortgage company from here on out if they don't take action against you.

Answer 5

You got busted during an audit.

I always tell everyone to wait 90 days, miminum, because the file is being audited multiple times by different departments and investors during that time period post-closing.

It is mortage fraud to knowingly obtain a mortgage using your income, knowing you plan to quit your job...doing so 2 weeks after closing (I have had some to quit that same day) demonstrates that you had already planned this prior to closing.

They don't foreclose, they'll "call the note due".

I hate to tell you, but you are in serious trouble.