All Forum Posts by: Account Closed

The exact language states "participant may not own ANY properties for 3 years from the date of purchase of the GNND property." This appears on the 2nd mortgage agreement which records the discount received. I called HUD and PEMCO about it and they confirmed inheritance of property would put a participant in noncompliance.

@David Krulac spouse gets locked in as a participant too, but I see your point.

I'm disappointed that you would have a problem with that. Taxpayers subsidize my existence, so I must be grossly overpaid if I can afford a foreclosed home in a bad neighborhood. Teachers are notorious for not considering taxpayers when setting personal finance goals, sorry about that.

Rich, I have no idea...

Oh man. Another. This is not some sort of teacher or policeman welfare. The program is to revitalize neighborhoods we serve by drawing us in with a discount. Read my post.

Karen,

I said exactly what you're telling me. My point is what's wrong with a REI if I satisfy the OO rule. My post isn't about me skirting the OO requirement, at all. For the price I live in the GNND home, I would have cash to invest in another property.
Still, some truth to you're reason. Another poster here on BP a while back was asking about skirting the OO rule to do the same, his wife was a teacher. Dumb.

Well the deeds are public for one. PEMCO/HUD will send me a certification letter annually to confirm I'm in compliance. It seems their main concern is to track owner occupancy, but the language in the recertification letter includes sole property ownership.

In no way am I looking to get around this. It's a great deal and an overall win-win for the neighborhood and my family. This is just a minor vent, and I hope to gain some insight as to why the program may be structured that way. The folks at HUD couldn't tell me anything... imagine that.

This was interesting. I just won a bid on a GNND house, and am excited to live in the community my school serves. The HUD FAQ states everything you asked, and after getting to know the management company, PEMCO, YES... they would have a MAJOR issue with you doing what you say.

The only thing they don't say on the website is you can't own ANY other property during the first 3 years, no land, no homes, nothing inherited, NOTHING. You don't get that document until your bid is accepted and your sent the contract package.

Thank you men. Carlos, I will keep your advice. Those community college classes are actually great! The instructors are local brokers/investors and getting enough hours to sit for the real estate license exam is cheaper than one "Total Freedom!" or "whatever" REI boot camp.

Albert, you're making up the point of the program. This program is not designed to help us struggling public servants. In fact, we need to qualify for the full list price to be even be eligible. The purpose of the program is to encourage renewal of revitalization areas by providing incentives for us to move in, in the form of a discount.

Here are its words, "The purpose of the Good Neighbor Next Door (GNND) sales program is to improve the quality of life in urban communities by encouraging Law Enforcement Officers, Teachers (PreK-12), Firefighters, and Emergency Responders (EMTs) to purchase and live in homes in these communities. "

The very essence of the program is investment in communities. So why limit people who are interested in further investing in communities? Btw owning includes inheritance, I called and ask.

During the same period a participant can borrow all they want for a car, a boat, even a Pollos Hermanos franchise.