OfflineI was out with my RE Agent today. He showed me several houses, ran the numbers and felt very comfertable. I said lets make an offer. Well, it turns out it is a HUD house, just listed and only allowing owner occupied offers.
I understand what an Owner Occupied Offer is, but we could not find out the length of time it must be occupied by the owner befor he can rent it, lease it, or sell it. Does anybody know the answer?
How does HUD follow up with the buyer to know whether you actually occupy the property?
What would the penalty be if you buy it owner occupy, but fixed and flipped it anyways?
Anybody with HUD experience and knows the answers, your help would be greatly appreciated.
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Coast To Coast Property Investments
I often write offers on HUD properties. Actually they are my favorites to write up because HUD makes it so easy for Realtors to submit the offers online. However, when the offer gets accepted you BETTER have the hard copy of the contract signed in blue ink with a certified EMD over nighted to their field manager’s office within two business days or they will cancel your bid and the property goes back on the market. Please, ask me how I know.
HUD also has a time frame to allow people who wish to occupy the property to bid without the competitiveness of investors. Generally I believe the time frame for HUD to allow Owner Occupied Owners (O/O) to bid on properties is somewhere from 10 – 14 days. Usually if I have my eye on a HUD property I set my reminder on my Ipad to check back in a minimum of 10 days since it was listed to see if it is now eligible for investors to bid on. Then I check back each day after that to make sure it does not get out of my sites.
Also, its HUD’s Policy if you purchase as O/O you must occupy the property for a minimum of 12 months before you can sell it, flip it or rent it. Unless there are other special deed restrictions 12 months is the amount of time you need to reside there as your primary residence, furthermore to meet O/O eligibility you must not have purchased a property from HUD within the last 24 months as O/O.
It is a FELONY to defraud or falsify the O/O Certification HUD-9548D with a maximum fine of $250,000 and a maximum prison sentence of no more than 24 months. In my area and many areas the FBI have set up a task force that target investor fraud, this isn’t 2004.
If I knew how to upload a document to your thread (not sure if thats possible) I would upload the HUD-9548D. Im sure you can google it. If you cant find one Id be more than happy to send it to you. Please read the fine print, it is far from priceless literally. ($250,000) lol
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Thank you for reading the fine print and passing it along. As I look to the west and see the setting Sun, I find my eyes are not as sharp as they used to be.
$250,000.00 fine. Do you take MasterCard or Visa for that.
I just did 25 years in Prison, I never go back, I'll never let them take me alive.
Again, Thank you for your quick response.
Coast To Coast Property Investments