Paying my Dads mortgage.?

Speaking to your dad would be your best avenue. Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

This depends entirely on how the loan was obtained. If your dad applied for a primary residence mortgage and represented to the lender that he would live in the home, but never intended to and never did, that is occupancy fraud. It is a serious federal offense. Lenders charge lower rates and have more flexible terms for primary residences compared to investment properties, so misrepresenting occupancy to get better loan terms is considered fraud regardless of who makes the payments. If the loan was obtained as an investment or second home mortgage with full disclosure to the lender, then the arrangement of you making payments is not inherently fraudulent, though there may be tax and gift implications worth discussing with an accountant. The honest answer is that you need to speak with a real estate attorney about this situation privately. If the loan was obtained under false pretenses, continuing to make payments does not reduce the legal exposure. The sooner you get proper advice the better, because lenders do audit occupancy on loans and if fraud is discovered it can trigger a demand for immediate full repayment of the loan.

You left out some details? Are you living in the home? Is It a VA loan. Is it a rental property? Did he intend on living there and them due to health issues was not able to occupy? Majority of the time -- the mortgage holder only cares that the monthly payment is made -- and not who makes it.

You should have a talk with your Dad to discuss the terms of his mortgage.

William -- you're asking an excellent question and it's good to wonder about doing things right. A few questions I would ask: (1) What type of loan was it? Some loan types do require it to be owner occupied. Did he get a first time homebuyer loan? VA? FHA? (2) Did he intend on living in the home when he purchased it? (3) Is he using it as a rental property?