We are looking at a great HUD home, however they are only taking offers if it is going to be owner ocupied. After 30 days it will then be listed to everyone (but with the pricing, it won’t last that long). Is there any way around this?
Sure. Buy it and move into it for the required time (2 years, I think)
I wish I could. If I bought it and sold it on a land contract…would that work? Assign the contract?
What do you intend to do with it?
I was hoping to flip it.
The guidelines are pretty clear and self explanatory. Whomever purchases it must occupy the property. Hence the term “Owner Occupy”
Even if you tried to circumvent the law (land contract) you would still be listed as the owner and would be expected to be the occupant.
What Mdhaas said. I mean you could try a double escrow or something along those lines but frankly I wouldn’t fool with it…too many shenanigans. Personally I don’t deal with gov’t/institutionally owned homes, and for that exact reason…too many regulations, guidelines, and red tape. Much easier to deal with private sellers.
I lost a house to an “investor” during the owner occupied time. He obviously lied on the paperwork and had to sign a paper stating he would occupy the house for at least a year. I told my Realtor about it who brought it up to the listing agent, but the listing agent didn’t seem to care much. So yes you can probably get around it, but it’s illegal and do you really want to run your business like that? I choose not to and have still had plenty of good deals.
I completely understand. I don’t want to run a business that is questionable, however, I didn’t know if there were any loopholes. At this point, I am going to wait the 30 days and see if it is still available. Thanks for all your input!
Even if it goes off the market, don’t give up, a lot of those homes are put under contract by people that don’t end up getting a loan,
Is this the only house in the whole dag gone town that you want to buy? Don’t try to beat the rules. Find a house you want to buy and buy it. Put in a bid on HUD houses from time to time but don’t build your business on them.
This is not the only house in the town, however it could be flipped with a $40,000 profit with only putting $5,000 into it! It would have been quick, easy money.
You think it will go too quick for an investor to get a chance at it. I’m guessing the price will drive up anyway with the competition.
You are probably right. I just have never seen HUD leave so much money on the table or start off with such a low price. I guess they just want to be done with their inventory.
You have not seen anything yet. Wait till the rest of the country catches up with Michigan and Nevada, here where I live they are almost giving them away. Currently buying Hud homes for 5-20,000 when they were going for 80-100,000 in 2006. They just have so many of them. Coming to a town near you.
Redhawk
Redhawk - That is crazy. It will kill the comps! Where are you from?