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We are very close to getting our mortgage. The house is a legal 2 family that is being used as a 1 family. There is not kitchen in the old rental. During the mortgage process we told the bank we may re-convert it back into a rental. Because the bank is taking so long, the closing is coming up very quickly. They emailed yesterday wanting to confirm that we will be renting out the bottom floor as they didn’t account for that in the appraisal. And if we are, they will have to come out a re-appraise and we will also be given a different mortgage rate. They said if we leave it as it is and then decide later to rent it out, they have the right to ask for the mortgage to be paid back in full immediately.

At this stage we won’t get the mortgage on time. Can we just say we won’t rent it out and continue with the process? If we do decide to rent it in the future, how will they know? It’s already a legal two family.