HUD-Owner-Occupant Rules?

[Julian Barnes]

Hi all...

Just a question for the vets....

I understand that when you BID as an "Owner-Occ", you have to actually occupy the home for @ least 6-12 months BEFORE refi'ing or selling.
And when you BID as Investor and win, you can do whatever, immediately. Refi, Sell, etc.

Okay, got that, but how does HUD know whether or not, you are ACTUALLY living in the place? Do they send the HUDPD out to your door, kick it in, and get proof? It says OO but since I am making payments on the prop, doesnt that entitle me as OO?

Thanks in advance... :mrgreen:

Jugo.
"Big players, make Big plays.."
-John Madden

[Tom C]

Jugo,

You will get caught, because investors like me watch these homes every week, waiting for the OO period to end. As an example, I was watching a vacant home for 16 months that had an orange tag on the door, waiting for it to come up on HUD. It came up and the listing price was extremely high,

I checked the following week and someone purchased the home during the OO period and the broker is a guy that mainly deals with investors. I waited 2 more weeks and the owners name was updated on the county web site. I ran a query on the owners name and he already owned a home in another town.

They have been rehabbing the place for 4 months now, but trust me, if I see a for sale sign go up on that house or find out that the owner is not living there after rehab, the owner and the broker will be in hot water. I have a personal vendetta against the broker who made this deal any way, because he is shady and some how he beats me on a lot of deals.

I want to know everything about my market. Who is selling and who is buying at what price and who are the players involved. This is my competition, so I need to know everything about them. Just keep in mind that you never know who is watching and it's not worth the risk. Wait until it moves to the All bids period.