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Unread 04-13-2012, 09:20 AM
 
Location: Boise, ID
4,953 posts, read 8,454,171 times
Reputation: 4170
I assume from what you have said that the house is in the FirstLook program. The point behind that program was twofold. First, to stop houses from sitting vacant, or letting them get run down from too many tenants in a subdivision. They want people who are going to live there and take care of the place. You aren't going to be living there and taking care of the place, at least not for a while. The second point was to allow people who want to live in the house themselves to get an offer in on bank resales without the competition from investors. You are not an investor, so this point is in your favor.

I don't have any experience with the First Look program personally (I'm not an agent), or know if there is any flexibility at all in the rules. It might be that if you sign an agreement to have the yard taken care of by a professional landscape company, have the utilities all turned on, and have someone (your local real estate agent might do this for a small fee) check on the house once a week to make sure everything is ok, then they might agree to let you make an offer during the first look period, with the understanding you will not put a tenant in, and that you will move in yourself within 6 months, instead of 2. Or, they may not.
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Unread 04-13-2012, 09:34 AM
 
4,703 posts, read 3,648,357 times
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Quote:
Originally Posted by anonguy View Post
.

Yes we plan on living in the property but it would be vacant for a certain period of time after closing.
This is regarding HOME INSURANCE if you buy the home....

Make sure your homeowner's insurance policy covers this. Most normal homeowner's policy have a clause that states vacant property is not covered or vacant property is not covered for certain perils(vandalism not covered if vacant, etc) . They ususally define vacant in the policy documents and often vacant means that nobody LIVED there for 30 consecutive days.

There have been lawsuits won by insurance companies related to this 30 day vacancy period. An owner that went to the home most days to remodel the home and occasionally spent the night when he worked a long time....he did NOT qualify and the home was deemed VACANT and the insurance company won in court and did not have to pay the claim when the home burned down.

If the home has furniture and utilities turned on, it would still be considered vacant per precedent of lawsuits won by insurance companies. Google and you will be shocked.

If you have a vacation home and have insurance for it you might get such a policy that covers all perils when the home is vacant.
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Unread 04-19-2012, 05:04 PM
 
3,012 posts, read 1,724,210 times
Reputation: 1837
As already mentioned these houses have first opportunity given to owner occupants and that means people that intend to live there. If you buy the property within these first days of it being on the market you will be asked to sign a statement saying you intend to live there for a certain amount of time, two years it was on the last one I had a client sign. If you don't intend on doing that you should wait for the 15 days or however long to pass before making an offer. I will say this though, those addendums seem "gray" to me. Saying you intend to, is it the same as saying you will do it? Can you intend to at the time you sign and then change your mind? I'm not saying anyone should do this, but the one's I'm seen don't look like they would hold anyone to doing anything from the way they are worded.
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Unread 04-28-2012, 04:02 PM
 
Location: Fort Lauderdale
310 posts, read 497,119 times
Reputation: 147
Owner occupy = homestead exception. I do not see any other significance.
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Unread 04-28-2012, 05:24 PM
 
3,012 posts, read 1,724,210 times
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Quote:
Originally Posted by Angel Calzadilla View Post
Owner occupy = homestead exception. I do not see any other significance.
Don't you mean exemption?
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Unread 04-29-2012, 04:48 PM
 
Location: Phoenix, AZ
26 posts, read 26,967 times
Reputation: 17
I just purchased/closed on a Fannie Mae REO on 4-25-2012. We are relocating from AZ to TX. The REO is in TX. At the time of close, we owned a house in AZ that was not even listed for sale. It was no big deal and caused no problems.

Fannie Mae required us to sign an addendum stating the house would be owner occupied or there would be a $10,000 fine. I do not know how long you have to move in before they get upset. We are waiting a month to move in ourselves. Our realtor said she did not know if this would cause problems or not - for a 30 day wait before moving in we just decided to chance it. I would recommend your realtor ask the listing realtor via email about your situation (thereby providing documentation if a problem were to arise). The sellers realtor is representing Fannie Mae - they should be able to answer or find out the specific answer to your situation on an addendum that their client is requiring.
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Unread 05-14-2012, 05:38 AM
 
Location: Fort Lauderdale
310 posts, read 497,119 times
Reputation: 147
yes, exemption. Sorry.
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Unread 05-15-2012, 09:19 AM
 
1,125 posts, read 1,127,549 times
Reputation: 364
USAA told me that principal residence means the property isn't vacant more than 90 days at a time. Not the same as owner-occupied, I realize.

And, to answer an earlier question, no one can force you to stay in a home. But that doesn't mean you necessarily have an absolute right to benefits in terms of mortgage, insurance, etc. that come from the property being owner-occupied. Disneyland gives discounts to Southern California residents. I'm not a resident so I don't get the discount. I can't say Disneyland forces me to live in Southern California.
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Unread 05-29-2012, 10:58 PM
 
Location: Tucson, AZ
132 posts, read 134,601 times
Reputation: 152
If you intend to be an owner-occupier, you will have to sign an affidavit of owner occupancy and you'll need to establish legal residency. I bought a Freddie Mac property with an FHA loan and got more favorable loan terms. I was told I had to live there for at least a year and a day - I think that's a federal not state requirement for occupancy. You can prove it by using that address on your tax returns, utility bills, voter record, etc. I heard that they can and will check - and if you don't actually live there it's considered fraud.

It has nothing to do with the "First Look" initiative, which gives potential owner-occupiers more time to make an offer on a newly listed Freddie Mac or Fannie Mae home before investors are able to.
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Unread 06-01-2012, 03:22 PM
 
9,538 posts, read 9,512,225 times
Reputation: 8269
Quote:
Originally Posted by anonguy View Post
We don't need a mortgage. So it's not possible to commit mortgage fraud.

How is it an odd scenario? Why would it seem odd that someone can't move into a property in a different State immediately?

We have a lease that doesn't run out until the end of the year here.. and also my grandmother has dementia and we are her primary caregivers. She'll be going into a nursing home here this year but the paperwork for it needs to be complete before a move. We need a property waiting for us to move into before the lease is done.

Yes we plan on living in the property but it would be vacant for a certain period of time after closing.

Freddie mac only asks in a short Q&A sheet if it will be owner occupied.. they don't list any kind of penalty or timetable to occupy.. at least not in the docs we have.

Fannie mae says the property needs to be owner occupied within 2 months after closing.. or $10,000 fine. But they don't actually define anywhere what owner occupied means.
My MIL bought a FNMA property. They also asked her if it was going to be owner occupied. She said yes. She lives there in the winter and in NY for the rest of the year. Other than the question on the form nobody has ever checked whether she lives there full time. She does not have a mortgage.
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