I have bought a few houses at auction and have sold them to family or for my own use. I am not a flipper.

I just recently bought a house close to my daughter's under the first look program. And fully intended to move there. Once I got into the house I realized it was destroyed and will be lucky to break even or lose only a small amount if I sell it immediately.

Under the program I'm supposed to live there for at least 12 months and one day. I had hoped it would be my forever home since my granddaughter was just recently born but some people must have gotten into the house and completely trashed it and the previous owners were hoarders.

Has anyone ever run into a situation where they have sold the house before the first look program is up? I've read a couple different things about penalties but I'm not sure which are true. Some of the items that are listed as potential penalties are described as discretionary. I was wondering if anyone had any experience with this situation.