Renter · Charlotte, NC · Member since 2008 · 27 posts · 1 vote
Hi all...
Just a question for the vets....
I understand that when you BID as an "Owner-Occ", you have to actually occupy the home for @ least 6-12 months BEFORE refi'ing or selling.
And when you BID as Investor and win, you can do whatever, immediately. Refi, Sell, etc.
Okay, got that, but how does HUD know whether or not, you are ACTUALLY living in the place? Do they send the HUDPD out to your door, kick it in, and get proof? It says OO but since I am making payments on the prop, doesnt that entitle me as OO?
Thanks in advance... :mrgreen:
Jugo.
"Big players, make Big plays.."
-John Madden
Real Estate Investor · OH · Member since 2008 · 1k+ posts · 86 votes
18y
Jugo,
You will get caught, because investors like me watch these homes every week, waiting for the OO period to end. As an example, I was watching a vacant home for 16 months that had an orange tag on the door, waiting for it to come up on HUD. It came up and the listing price was extremely high,
I checked the following week and someone purchased the home during the OO period and the broker is a guy that mainly deals with investors. I waited 2 more weeks and the owners name was updated on the county web site. I ran a query on the owners name and he already owned a home in another town.
They have been rehabbing the place for 4 months now, but trust me, if I see a for sale sign go up on that house or find out that the owner is not living there after rehab, the owner and the broker will be in hot water. I have a personal vendetta against the broker who made this deal any way, because he is shady and some how he beats me on a lot of deals.
I want to know everything about my market. Who is selling and who is buying at what price and who are the players involved. This is my competition, so I need to know everything about them. Just keep in mind that you never know who is watching and it's not worth the risk. Wait until it moves to the All bids period.
Linden, NJ · Member since 2016 · 13 posts · 0 votes
9y
im planning to buy a hud property. i currently live in my parents house so as soon as i close on the property, i can change my address. i will not move right in since the hud property needs work. So my question is, will i be able to buy the property, change my address, while still living in my parents house and rehab for a year and then after then sell the property with out an issues?
so technically i will be rehabbing the property for a year and picking up my mail. then selling it after the year mark..
Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
9y
I am trying to learn more about this topic. As my client wants to buy something but doesn't know if he will be moving again in the next year or not for work. How are these rules enforced? Aside from the certification what other information does the seller use to confirm the owner will in fact be living there?
What happens if a buyer wants to buy a property with this restriction but currently owns a primary residence. Does this mean they will have to sell it?
Is there somewhere official that spells this information out? I've been searching and under stand that there is a 12 month owner occupancy requirement. But say two people want to buy the house together but only one will live in it for the full year how would HUD look at that? both names would be on title and one of those people would live there for over a year then buy out the other person? thoughts?
Does anyone have an opinion on this scenario? Can I jointly purchase a home with a relative during the Exclusive period, we would both go on the deed as I would pay for the property, only the relative would occupy for 12+ months?
Mount Clemens, MI · Member since 2017 · 4 posts · 0 votes
8y
Does the 12 months include the rehab period? What if the rehab takes 12 months does that mean you don't have to live there? What if you just buy it and do nothing with it for 12 months?
Does the 12 months include the rehab period? What if the rehab takes 12 months does that mean you don't have to live there? What if you just buy it and do nothing with it for 12 months?
You are required to occupy within 60 days for a period of 12 months
Leaving a property vacant would definitely draw attention to a pissed off fellow investor that did not have a chance to bid on the property
I have recently had to go on disability and no longer able to work. My parents have recently purchased a HUD home with the intent of me living there for the remainder of my life. There is no intent to ever rent or sale the property as it will be left to my children after I pass. They paid cash for the property so no loan involved. How can we satisfy the owner occupancy requirements without actually putting my name on the title?
Your parents signed a form agreeing to owner occupy the property for 12 months. They should not have done that that if that are not going to live there. The reality is your living there are there will not be an issue
I want to buy the HUD house next door to me. I will pay cash. I don't plan to ever sell it. I plan to tear it down and eventually re-deed both pieces of land as one. I will probably build an addition to my house that will be on that property. I can reach out a window and touch this house from my home. My husband is not on this deed of my current home and can change his address to next door. He will be an owner on that deed with me. Would we be breaking any rules? We will be there everyday. Can we tear it down as owners?