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Old 07-06-2012, 10:34 AM
 
3 posts, read 10,093 times
Reputation: 10

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Second home purchasers qualify for first look through Freddy Mac.
First Look Initiative - HomeSteps
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Old 11-13-2012, 06:11 PM
 
1 posts, read 6,820 times
Reputation: 14
Default Owner Occupant Certification

I have two answers...one by the book and one if you like to live dangerously...

First, the owner occupant terms can be found at the following websites. When you write you offer your agent will have an owner occupant addendum that you'll need to sign certifying you'll live there and a 15-20 page addendum about all the REO firm (in this case fannie mae) rules. READ THEM! the violation of these rules is punishable by fines around $10,000 and jail time.

Second, and more dangerously...they have to catch you. I don't know what state you're in but in Iowa, as long as you're acting in good faith...-not intentionally trying to cheat the system by lying and using it as a rental - probably not going to be a major problem. I have never known anyone to actually get investigated unless they claimed rental income from the property on their taxes or claimed income from a sale in under one year from the time they closed on it. (but then again I don't associate with people who are tying to cheat the system either)

The reason for the first look is to give owner occupants a chance because they help stabilize neighborhoods by taking better care of properties and reducing the chance of getting negligent landlords. Also, owner occ's are often slower to make offers than cash investors.

When in doubt...get an attorney....and get them to sign off on it. It'll cost a lot less than 10k and jail time.



Quote:
Originally Posted by anonguy View Post
We're looking to buy an REO in a different State... most of them are with fannie mae or freddie and they basically try to force you to occupy the property within 2 months of closing but they don't even outline what occupy even MEANS.... they just say it needs to be "owner occupied"... and cannot be sold / rented for 12 months after buying.

We sold our place here over 3 years ago and have been renting and now looking to move out of State into one of those bank owned places buying it with cash.

So does anyone know exactly what the hell "ower occupied" actually means? and if they don't define exactly what it means then how can they even enforce it?

If we purchase the property , go out there , sit in it for 24 hours.. turn on a utility.. then leave for a 6 month vacation or still have a rental place in another State......... Is it owner occupied ?????????

Our agent said it's a grey area.. she doesn't even know.

How can anyone force you to stay in a property you own ? That has to be illegal or even unconstitutional.
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Old 11-13-2012, 06:15 PM
 
Location: North Beach, MD on the Chesapeake
32,103 posts, read 39,155,933 times
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In MD, for Homestead Exemption purposes, owner occupied is defined as the owner's primary residence. When Mrs. NBP and I bought our house 25+ years ago the FHA paperwork had that same definition.
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Old 05-03-2013, 01:34 PM
 
1 posts, read 6,336 times
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If you are confused in any way shape or form about what qualifies as owner occupied, you can always ask the listing agent exactly what the stipulations are. Otherwise, if you truly plan on living in the property, I would make sure you get the utilities turned on in your name and get bills sent to the property. We bought a HUD property during the "owner occupants only" phase and didn't move in for four months. We needed to get the house livable before we could completely move in. FYI, if there were investors interested in that house waiting for their turn to bid, they will keep their eye on you to make sure it is truly going to be owner occupied.
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Old 05-03-2013, 03:43 PM
 
2,091 posts, read 5,952,445 times
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Owner occupied means its your primary residence. The address on your drivers license and car insurance.


In your case you could probably just inform the post office that you are the new resident of the home, then have any mail that might show up there forwarded to where you are renting until you move in. I doubt after closing that anyone will be looking to see if you are physically there yet. As long as you avoid renting it out or selling it I can't imagine anyone would notice.
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Old 05-11-2013, 02:00 AM
 
Location: Tucson, AZ
135 posts, read 281,666 times
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Quote:
Originally Posted by SKP79 View Post
... FYI, if there were investors interested in that house waiting for their turn to bid, they will keep their eye on you to make sure it is truly going to be owner occupied.
Exactly! I have an investor client who tried to buy a bank-owned home but lost out to an "owner occupant" under the First Look program, even though he offered full price. He still wants me to check on the house to make sure it really is owner-occupied. And yes, sometimes the government does check - I don't think it's worth the risk.
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Old 05-11-2013, 08:22 PM
 
Location: USA
16,564 posts, read 16,220,686 times
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It used to be somewhat easy to buy a property as owner-occupied, so you can get the better rate even though it wasn't legal. However, since the crash it is not worth the risk. Owner-Occupied means that is your primary home and address. You live there most of the year or full-time, all your bills get sent there, etc... it's your home and you occupy it. You don't rent it out etc. You can find a lot of information about occupancy fraud online.
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Old 05-12-2013, 08:26 PM
 
Location: OK
2,717 posts, read 6,289,617 times
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Quote:
Originally Posted by anonguy View Post
they just say it needs to be "owner occupied"... and cannot be sold / rented for 12 months after buying.
Exactly what that says. You buy it for your own use and do not rent it out or sell it for 12 months.


Quote:
If we purchase the property , go out there , sit in it for 24 hours.. turn on a utility.. then leave for a 6 month vacation or still have a rental place in another State......... Is it owner occupied ?????????
Yes.

Quote:
Our agent said it's a grey area.. she doesn't even know.
The fact that your agent doesn't know does not make it a grey area.
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Old 03-07-2015, 04:42 PM
 
1 posts, read 4,277 times
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SO if you agree to live there one year and you are transferred out of state (job), can you sell your house so you can purchase another one where you move to? How about if you have a death in your family in another state and you then go to reside with your surviving parent because the parent can not come live with you in the other state as your house is a small 2 bedroom over a garage and your mother is 80 and in need of a lot of medical attention. Can you sell the house and move without penalty?
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Old 03-08-2015, 01:54 PM
 
6,359 posts, read 7,321,320 times
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Quote:
Originally Posted by balow View Post
SO if you agree to live there one year and you are transferred out of state (job), can you sell your house so you can purchase another one where you move to? How about if you have a death in your family in another state and you then go to reside with your surviving parent because the parent can not come live with you in the other state as your house is a small 2 bedroom over a garage and your mother is 80 and in need of a lot of medical attention. Can you sell the house and move without penalty?
Yes, you can usually sell without penalty when you have such unanticipated circumstances.
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