Are investors bidding on HUD homes illegally?

[Michael Deter]

Hi everyone,

I'm looking to bid on a HUD property in Columbus, OH. It is a 4-plex that is partially rehabbed. Currently only owner occupants can make offers which is great for me since I am looking to purchase a 2-4 unit and house hack.

My agent mentioned to me that even though only owner occupants can bid right now some investors might say they will move in to get the deal before everyone else can bid on it with no intention of moving it.

Has anyone heard of this happening? I assume this would be considered mortgage fraud. I’m trying to understand if I will be competing with all investors or just those looking to house hack.

Thanks for your input!