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owner occupant certification

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Stacy Nettinga

Contractor from Mitchell, South Dakota

Aug 19 '11, 05:00 PM


I bid on a REO property about 3 weeks ago, and never had to sign an owner occupant certification. However, I plan to put an offer in Monday on another property, and it is included in the information packet. I have done past searches here on BP, but don't see anything real recent on this issue. If I don't sign and claim to be an investor, will my offer be automatically rejected? How else can I get around holding this house for 12 months before reselling?



Eddie P.

Real Estate Investor from South, Florida

Aug 19 '11, 05:54 PM


That usually is the case with Fannie Mae or Freddie Mac homes during the first look period, and some HUD homes. Supposedly its to give owner occupants an opportunity to purchase a home without having to compete with investors. I recently submitted an offer on a Fannie Mae home locally and although I was the high bidder and offered better terms(cash), they chose an owner occupant offer. I refused to sign the form since I did not want to face a $10k damages claim as stated on the form and even worse get blacklisted from future purchases.



Stacy Nettinga

Contractor from Mitchell, South Dakota

Aug 20 '11, 06:51 AM


Thanks Eddie P. I guess I'm in the same situation. I will offer all cash, but will not sign the form, so it will probably not be accepted. This particular property needs quite a bit of work to become habitable, so maybe there is a chance. Thanks for your input.



Chris Calabrese

Rehabber from Mt. Pleasant, South Carolina

Aug 20 '11, 07:01 AM


Yes, it depends on the bank, but Fannie and Freddie have 15-day first look periods and HUD has a 30-day period for OO's, government, and non-profits. One annoying thing I've seen with HUD is that if a property doesn't sell and the listing expires, they might hire another listing agent and lower the price, but they reset the 30-day period. I just had one where they lowered the listing price below one of my previous offers, but I couldn't bid on it! Gotta love the government.



J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Aug 20 '11, 07:27 AM


Unless someone overlooks the fact that you didn't sign the document (unlikely with the major banks), you're not going to get away with this.

If I were you, I'd just decide upfront if you want to sign the document or not, and if not, approach the offer as an investment, not an OO.

You especially don't want to get a reputation as someone who is trying to game the system, either with listing agents or asset managers...



Medium_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Website: http://www.123flip.com
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Stacy Nettinga

Contractor from Mitchell, South Dakota

Aug 20 '11, 02:26 PM


J Scott, just to be clear, I have no intention of gaming the system. I have/will always claimed to be an investor. But in this case the free look period has expired, so I think this document will not be required at this point. Not sure why it was included for me to look at. Place has been listed for 6 weeks, with one price reduction already.



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