We may finally find out what the repurcussions are for OO bid as NOO

[Mike H.]

Went to look at a house today and my realtor was sharing some real estate
investing stories with me. Turns out that one of the houses
that a couple of her investors wanted was snapped up by someone.

That someone turned around and was bragging about the huge grant they got for a bunch of new windows on that house and how thats going to help them get even more rent. Well, he was bragging in a village meeting with one of the investors who lost out on the deal and who also happens to be an alderman that doesn't like the nonsense.

My realtor has filed a claim against the buyer basically saying that they did not buy the home with the intent of occupying it.

Based on the area, I think this guy is going to have a real hard time winning a case that he ever intended to move into it. He's got a really nice house and this house, while in an ok area, is nowhere near the level of home he's got now.

And my realtor says her other investors are up in arms over it.
They want to know why they should have to play by the rules
if there are no repurcussions for those that don't.

My realtor said the fine was up to 250k and jail time.
Apparently, its a federal crime - fraud.

So it'll be interesting to see if there is actually any
teeth to the whole OO vs NOO bidding. I personally don't
think they're going to do much of anything to the guy other
than possibly prohibit him from bidding on any future homes.
But given there are ways around that (his wife can bid or something),
he's not getting nearly enough in my book.

I really think HUD should just open up the bidding
to all bidders right from the get go. I don't see where they
come out taking less money from an owner occupant than
an investor any way. Its not their money. Its the taxpayer
that is paying for their nonsense.

That being said. I am really waiting to see just how bad
this guy gets hit. Its not just a little white lie. This is so clear
a violation of intent, its the perfect test for the whole OO and NOO bidding period.