Can I resell my house with OO loan after 4 months?

[Anna Andre]

Please help !!!Recently Bought a house with Owner Occupied Conventional loan 20% down backed up by Fannie Mae . Unfortunately 2 months after closing I had to quit my job because of stress and health issues  . Now I am facing financial difficulties and need to sell my house even if I loose some money from my down payment. I signed Owner Occupancy affidavit for 12 months (that I will occupy the house as my primary residence for at least 12 months unless circumstances exist which are beyond the Borrowers control) . What is the procedure in my case ? Should I let my mortgage company or Fannie Mae know about putting the house on the market ? The mortgage  doesn't have a prepayment penalty but I am afraid to let my lender know about selling the house because obviously they are going to loose their commission. I read about mortgage fraud and penalties and it stresses me out even more. Any advice or experience would help.

[Chris Mason]

Assuming you aren't in short sale territory, you will be fine.

When you break the occupancy promise, they (in theory) can call the note due and demand payment in full. 

When you sell a home, the mortgage is paid off in full as a matter of course. So you're already doing what they in theory could demand of you.

Old joke said among troops in Iraq: "What are they going to do, send me to Iraq?"

Joke applicable to your scenario: "What are they going to do, demand that I pay off the mortgage that I'm already paying off?"