Need to Sell before HUD (2 Years) period is over

6 Replies

Hi BP! This is my 3rd deal, I have a good HUD opportunity and I plan to live in the house but not more than a year, then I’ll sell, what are the consequences of selling before HUD time is over? Thank you!

There are no issues selling a HUD home purchased as an owner occupant after satisfying the 1 year occupancy requirement

The only 2 year requirement is that you can only buy as an owner occupant from HUD once every 2 years

512-293-3885

Thank you Greg! If my other deal completes before 1 year, and I want to move, what are the consequences of moving out of a HUD home I lived only for less than the specified time?

Originally posted by @Ruben Pereira :

Thank you Greg! If my other deal completes before 1 year, and I want to move, what are the consequences of moving out of a HUD home I lived only for less than the specified time?

You will sign a document stating that you will live in the property for 1 year per HUD guidelines. Barring an unforeseen occurrence, you need to be prepared to honor that commitment

512-293-3885

@Ruben Pereira

Then you do not qualify to purchase the home during the Exclusive period. Once it enters the extended period you are able to bid on it as an investor who will not be living in it for a year minimum.

Mike Cumbie, Real Estate Agent in NY (#10401285310)

In other words, you will live in the property as an owner occupied for at least 12 months.

HUD has VERY strong contract language that you will have to sign. Words like "loan fraud" and "FBI" are used throughout that contract language. So, it is best to be sure that you will be honoring your commitment to HUD.

Also, to clarify, you could buy a HUD home as an investor as many times as you want. HUD doesn't care if you buy 3 on the same day! However, IF you are going to purchase during the owner occupied term, you have to commit to the 12 month occupancy. Also, I thought it was 3 years before you could buy another owner occ, so it is encouraging to hear that it may only be 2 years before you can do it again.

Thank you all! I’ll be deciding tomorrow and either commit to the 12 months or wait for the investor purchase time, thank you for your advice!

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