Curious to know how long a HUD property needs to be owner occupied if purchased during the “First Look” program? How do they even enforce this policy? It seems the grace period is the first 10-15 days for non-for profit and owner occupants. I’m an investor waiting for the bidding to open up to all bidders and I’m beginning to wonder if they ever really become available to investors?
People are supposed to live in the house for one year to qualify as owner occupant. There is a paper they make you sign at closing stating you will occupy the house for one year. How they enforce that, I’m not really sure. We lost a house to someone else once during the owner occupant period. We were waiting until the bidding opened up to everyone, but this guy said he was an owner occupant, but that wasn’t the case.
HUD houses often come available to all bidders. Many of these houses have problems such that they wouldn’t qualify for a mortgage from a bank for owner occupants. That would mean buyers would need to pay cash as owner occupants. I’m currently waiting for a HUD house to drop in price. It started out as owner occupant only and then opened to investors a couple weeks ago. They wouldn’t negotiate much on the price so I’m just waiting it out.
I have always been a believer and attribute my success to a very simple belief. That belief is HONESTY and INTEGRITY in all of your relationships will return your investments in life and business, 10 fold.
“Circumventing” the system by saying that you will purchase a property as an O/O when your true intent is an investment, may fool some. However, would you be prepared for the ramifications if YOU just might be the one that they do check up on?
There will be plenty of other opportunities. Wait and do it the right way.
Happy Holidays and To your success in 2014!