airbnb fha

[Crystal Wilson]

Im nervous about renting my 2 bed 2 bath condo on airbnb. This is fha loan. A hud home\forclosed. I dont know if its legal. And if my neighbors will call the Hoa on me. Has anyone done this? Any info? Thank you

[Robert Herrera]

@Crystal WilsonThey can not foreclose or take away your loan. FHA only means that if you Default (meaning you don't pay your mortgage), the government will pay the lender the money, and they government will take the house. Once the government has it, they sell it as a HUD Home. That is where HUD homes come from. There is nothing special about this. They don't have some power over you or your house. It's a simple government program designed to help out lenders. You should not be afraid of this. Your loan docs say that you will OWNER OCCUPY for a year. After that you can do whatever the Hell you want to. It's your house. That's the way i got my first rental. FHA Doesn't walk around to everyone's houses to do "inspections" or to check up on you. This isn't Government Assistance, like Food Stamps, or Medicaid.

On a side note, your Mortgage is considered "Performing". This means that you are paying your mortgage every month and the Bank is Making MONEY. They are HAPPY! If they were to Foreclose on you, the Mortgage would be NON-Performing. That means they don't make a DIME. Foreclosure takes 6months to 1 year to take the house back. That means they would have to pay TAXES and INSURANCE Every Month while they are Paying Lawyers to foreclose. This take lots of time, and Casts the Bank LOTS of MONEY. Then they have to Sell the house at a Discount Auction. It's just Stupid Business, and makes NO Financial Sense to the BANK. That's ALL THEY LOOK AT. Also, Legally, BANKS ARE NOT ALLOWED TO OWN PROPERTY. They are not in the Business of foreclosing to OWN HOUSES, then Sell them back. They are in the Business of Sell (loaning) you Money. I wouldn't worry anymore about the Bank or FHA.