U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-08-2015, 10:32 PM
 
1 posts, read 2,272 times
Reputation: 10

Advertisements

What if my adult son and his family occupy the home rent free of a home previously and currently owned by me and is a second home to me.
May I apply for a owner occupied home loan since a close member of my family occupies the home or must the loan be an investor loan?
Reply With Quote Quick reply to this message

 
Old 11-09-2015, 03:53 AM
 
10,196 posts, read 6,146,260 times
Reputation: 10674
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.
Basically it tells you what it means, no renting or selling within 12 months. It means you do have to live there, does not mean you have to stay there 24/7 since it is not house arrest. It does not mean you can't live with relatives for a different season or two such as in the case of a snowbird. If it's your primary home for homestead tax reason you need to make it your voting address and drivers license address as far as I know. and if it's unoccupied for months at a time there may be an issue with your home owner's insurance.
Reply With Quote Quick reply to this message
 
Old 11-09-2015, 03:55 AM
 
10,196 posts, read 6,146,260 times
Reputation: 10674
Quote:
Originally Posted by will lyon View Post
What if my adult son and his family occupy the home rent free of a home previously and currently owned by me and is a second home to me.
May I apply for a owner occupied home loan since a close member of my family occupies the home or must the loan be an investor loan?
It depends on the loan, if you can do a conventional loan such as 20% down or whatever regular loan you can get you don't have to have it owner occupied. In this case with the OP it's a fannie mae home and they have different rules, so do USDA loans.

I believe FHA loans also require owner occupancy for a year and you have to include all household members income. I read somewhere that it's the intent at closing that counts, if you intend for your family to live there than that may be considered loan fraud. If circumstances come up where a family emergency makes them live there first of all how would they know and I think they may allow it.
Reply With Quote Quick reply to this message
 
Old 11-10-2015, 10:18 AM
 
Location: Athol, Idaho
2,189 posts, read 1,013,006 times
Reputation: 3169
Quote:
Originally Posted by Lacerta View Post
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.
This is really iffy advice. it would have been better to say you just dont know.
Reply With Quote Quick reply to this message
 
Old 11-10-2015, 10:21 AM
 
Location: Athol, Idaho
2,189 posts, read 1,013,006 times
Reputation: 3169
Quote:
Originally Posted by sware2cod View Post
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.
The policy needs to be a landlords policy. They call it that even if its vacant. The cost is different, so inform the insurance company when you move in.
Reply With Quote Quick reply to this message
 
Old 01-09-2017, 06:44 PM
 
1 posts, read 391 times
Reputation: 10
I know im years to late for this post but... i understand what is said back in 2012 about it being unconstitutional..in the fact that how can they force you to remain in one spot for 30 years or you lose your house..if it states you have to remain in the home for the entire life of the mortgage just because they backed and fha loan with NIFA. but 5 years go by and you decide you want to go abroad but keep your home so you rent it out why the heck should that not be allowed?? Their mad that they arnt sucking more money from you?? At some point we need to remember what the heck freedom actually is...if a person wants to rent their house out but are still paying the bill then anybody else should just mind their own business.. their making money and havnt even stepped foot in the property..theres no reason to freak out and take away something that is being paid for
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top