Duplicate Bridge Rules For Different States
There are different versions of the duplicate bridge rules. Different states have different requirements. Let’s take a look at the variations.
“Non-resident” means the car will need to be driven into another state to be considered a resident. Generally, this means the car needs to be driven to the state that the driver is in. The same rule also applies if the car is financed and the lender is in one state and the borrower is in another. The loan takes place when the loan provider receives a written notice that the borrower moved out of the state.
The “non-resident” rule is one of the most common duplicate bridge rules. The reason for the rule is that many lenders have been lax about collecting late or missed payments. The rule makes sure that the borrower has notified their lender that they’ve moved outside of the state.
“Resident” means the car can legally be driven in the state. There are different rules and regulations depending on the state. For example, Massachusetts requires the borrower to prove that they are a resident. The loan is then subject to duplicate bridge rules.
The “residence” rule means the car needs to be registered in the state. The car has to be registered in the state where the borrower lives. Therefore, a car is considered a resident if it is registered in the state it is being financed in.
The third rule is “permanent resident”. This means the car must be brought into the state. If it has a full title (a car with an FHA loan), it is considered to be a resident. Otherwise, it is considered to be a non-resident.
The other bridge rules are a hybrid of the three above. If a lender has not verified a borrower’s residency, it will be fined by the FHA.
When a borrower moves out of the state, the lender has until the borrower re-register. The lender can contact the borrower by mail or fax to ensure the borrower is still a resident. If the borrower does not re-register, the lender can apply for and demand payment. This penalty is called “pending settlement”.