Getting Around Owner/Occupant Requirements

First of all, what business is it of the Seller (Bank) what I do with a property I own after they are out of the equation? So irritating.

Anyway, I’m familiar with ways around seasoning of title restrictions, but what are some ways around owner/occupant only requirements? How is this enforced and are there any clever ways of bidding on one of these properties when you have no intention of occupying it?

The time I see owner occupant restrictions the most is when bidding on HUD homes. You have to sign something at closing stating you plan on living in the house for at least one year. I don’t think they’ll send the HUD police after you if you don’t do that, but it’s unethical nonetheless. I once lost out on a HUD home to an “owner occupant” investor. I was pissed at the time, but now I’m glad I didn’t get that one anyway. Anyhow, over to you how you run your business, but there are forms to sign stating you intend to occupy the property.

Well, I don’t intend on doing anything unethical, but there are, typically, ethical ways around various restrictions. Just looking for some around these HUD restrictions and various others, such as Homepath.

Are those restrictions for Homepath mortgages only or do cash purchases also have to be owner-occupied?

are there any clever ways of bidding on one of these properties when you have no intention of occupying it?

Sure, it’s called lying, committing fraud… :rolleyes

It really doesn’t have anything to do with how you’re paying for the property. These are HUD homes so the gov’t is involved. In the interest of making things “fair”, the gov’t has decided that owner occupants get the first crack at it. Once the designated time period ends, the bidding opens up to us big evil investors. When they decide to drop the price, it goes back to owner occupants again and the process starts over.

Guys, Hate to rain on your parade…but…both HUD and VA will come by and check to see that you are the actual owner occupant.

As someone else the government is involved.

MY advice…do not do it…they enforce and fine.

Well I’m not trying to do something behind their backs. I am simply looking for legal ways around their ridiculous restrictions (such as if I were attempting to assign a non-assignable deal - there are creative, legal ways of getting around it). It sounds, though, that there is not much that can be done about this one.

Did you ever consider that they have “their ridiculous restrictions” for a reason???


I assume to stop the evil real estate investors from buying all the good deals, but please enlighten me.

HUD is the US Department of Housing and Urban Development.

Mission Statement
The mission of the Department of Housing and Urban Development (HUD) is to help people create communities of opportunity. The programs and resources of the Department help Americans create cohesive, economically healthy communities. At the core of this mission is a set of fundamental commitments: to community; to family; to economic lift, to individual rights and responsibilities; and to ending separation by race, national origin, income, disability, age, and class.

To accomplish this mission, we have focused activities at the Department of Housing and Urban Development on three priority objectives:

Increase Homeownership. We build partnerships with the private sector and streamline internal operations to help more Americans become homeowners.
Empower Communities. We make it easier for neighborhood groups and local officials to use federal resources to create jobs, spur economic development, and revitalize neighborhoods.
Transform Public and Assisted Housing. We’re breaking with the past, tearing down and replacing dilapidated buildings, cracking down on crime, and asking residents to take on new responsibilities.

The primary mission of HUD is NOT to reduce their inventory backlog or to provide inventory to investors…it is to provide safe, affordable housing…

The first opportunity for these homes is to people that want to live in them not to those seeking to make a profit from them - PERIOD.