Greetings all:
I’m sure this has been asked but I’m too lazy to search the site so here goes: Is it risky flipping a HUD house that you purchase as an owner/occupant prior to living in it for the required period of one year? According to HUD’s website, if I buy a HUD house as an owner/occupant I have to live in it as my primary residence for no less than a year. If I move or sell earlier, I could be fined. Have any of you bought a HUD house as an owner/occupant and sold it prior to the required period of residence? According to a lady at HUD, the only way HUD would find out is if some disgruntled investor who was waiting for the property to go to “investor bidding status” took a picture of a for sale sign in the front yard of the property and sent it to HUD. Still, I’m hesitant to do this without hearing from others with HUD experience. Thanks in advance to your feedback! 
Aside from any possible fraud issues, I wouldn’t do anything that appears to be unethical or wrong in any way. If you have to worry about someone finding out what you’re doing, you just shouldn’t do it. And that is not only real estate, but everything. This is not based on any experience, it’s just doing things in an ethical way.
Bobo,
I understand where you are coming from and I agree for the most part. I’m not out to take a house away from a Katrina survivor and make a quick buck. I just can’t live in it for a whole year. I’m also not sure HUD really cares or is eager to enforce the issue. The HUD lady I spoke with didn’t seem to think it was a big deal. I was just wondering if anyone on this board has sold a HUD property and what their experience was.
DH
Hey Bobo,
You not one of those people who go 65mph in the fast lane, are you?
Whatever you decide to do, just do it above board. I have heard that if there are extenuating circumstances, you might be able to get out of it. DO NOT take my word, I don’t know this to be fact. I just heard it mentioned.
By the way, I would go 90mph if I could get away with it.
RULE OF THUMB:
If you are trying to hide anything. Don’t. It’s fraudulent!
If each deal will not stand on it’s own. Don’t. It’s fraudulent!
If it’s not arms length. Don’t. It’s fraudulent!
Thanks to both of you for the sound advice. I’ll be waiting until the property goes to investor status before bidding.