HUD question

Foreclosures, Short Sales, Tax Foreclosures
1

There is a HUD property for sale for $90k. The only thing it needs is carpet and the value is $130k. However, the bid is only open to Owner Occupants. However, I have an employee who works for my other business who is looking to buy a house. Legally, the purchaser of the property has to live in it for 12 months before it can be sold. His credit is questionable but with me as a cosigner, he would be approved. Could I legally cosign his loan and he live in it or do all owners have to live in it or will HUD even allow that?

I have absolutely no knowledge of how HUD works so if someone could advise me, I’d appreciate it.

2

HUD doesn’t care, that should work fine. Keep in mind however, the property will sell above $90k. The house I live in is a HUD home with the same numbers except HUD wanted $95k, I bid $101k and got it.

Also, I hope you know what you are getting into by being a cosigner.

3

Thanks for the feedback. I just don’t feel like paying $250k in penalties and jail time. As far as co-signing it, I would have my attorney do up a special contract to cover all areas of my ass. ;D

Thanks again.