Can I sell a HUD home bought as owner occupied?

Question

Greg H. · Answer

There are no deed restrictions on a HUD purchase. You will however sign a document stating that you will occupy the property for 1 year.

If HUD investigators came to you and asked you why the property was never owner occupied and sold within the year, what would your defense be?

Mike Cumbie · Answer

@Jonathan Cronkite

For the Exclusive period (Normally 2 weeks), yes it has to be an owner occupant and I wouldn't mess with trying to find away around that. Unless your daughter buys it.

Now after that it goes to Extended, it can then be sold to investors and there is no owner occupant requirement. So wait until it goes into the "all bidders" section and put your bid in.

EDIT: The unless your daughter buys it was under the impression she would be living there, but rereading your post it doesn't sound to be the case.

Russell Brazil · Answer

Deed restriction is how the enforce it.

Brian Pulaski · Answer

You would be taking a big risk. I'm sure people do it all the time, but that doesn't make it legal, and those same people won't be helping you out if you get caught.

Noreen Eddy · Answer

As I recall, the documents we signed on our HUD owner-occupied stated that falsification of anything on the contracts could result in hefty fine and imprisonment.  (The federal kind of imprisonment).

So, unless the thought of wearing a 24/7 orange jumpsuit next door to the guy who hit Whitey Bulger sounds good to you... I'd play along with the rules.  With the government being so erratic lately on which rules they will enforce, it's a rule I personally wouldn't challenge.

That being said, "owner occupant" means only for a year.  A year is not that long when fixing a HUD property (trust me, it flies).  Occupant means six months and a day per year, as I understand it.

Can I sell a HUD home bought as owner occupied?

Most Popular Reply