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Old 06-04-2008, 08:20 AM
 
21 posts, read 181,973 times
Reputation: 39

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For the bank foreclosured house we are currently bidding on, the listing agent asked that we need to meet their requirements before putting the bid: 1. we have to be first time home buyer; 2. the purpose of the purchase is for occupying the house ourselves, not for investment.

Well, we met both criteria. It's a $300+ house, not a HUD. But I just don't understand why the bank requires it. Isn't it weird?

Thanks!
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Old 06-04-2008, 10:30 AM
 
Location: A little suburb of Houston
3,702 posts, read 18,211,653 times
Reputation: 2092
Owner/occupiers get priority over investors on a lot of foreclosures.
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Old 06-04-2008, 10:55 AM
 
Location: St. Louis, Missouri
9,352 posts, read 20,026,135 times
Reputation: 11621
sounds like there may be some grant money involved?? down payment assistance?? reduced interest rate??
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Old 06-04-2008, 10:57 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,733,169 times
Reputation: 4190
Probably because many of the foreclosures are investment properties to begin with and the bank doesn't want to get burned again so prefers to sell them to someone that wants to live in it.
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Old 06-04-2008, 11:15 AM
 
Location: where nothin ever grows. no rain or rivers flow, TX
2,028 posts, read 8,120,172 times
Reputation: 451
maybe its an HOA thing or fanny/fredy mae related
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Old 06-04-2008, 02:17 PM
 
Location: St. Louis, Missouri
9,352 posts, read 20,026,135 times
Reputation: 11621
that would explain the requirement that it be a primary residence..... but not that the prospective be a 1st-time homebuyer......
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Old 06-04-2008, 02:27 PM
 
Location: Rural Central Texas
3,674 posts, read 10,603,080 times
Reputation: 5582
Federal targeted funds are the principal reason for the 1st time homebuyer requirements.
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