what are Fannie Mae rules on owner - occupant bank owned homes is regard to length of residency and fines? (percent, occupied)
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regarding FNMA "First Look" what are the checks on owner occupants after the purchase to be certain they are living up the "owner occupant" lable? In addition, if they find out they are in violation of the "owner occupant" requirement after the sale are there fines? I am an investor that got beaten out on a deal by an Owner Occupant that is now (less than 12 months later) selling the property. They were investors and fixed up the property. I offer more than they paid but because they offered in first 15 days the program gave it ot them
regarding FNMA "First Look" what are the checks on owner occupants after the purchase to be certain they are living up the "owner occupant" lable? In addition, if they find out they are in violation of the "owner occupant" requirement after the sale are there fines? I am an investor that got beaten out on a deal by an Owner Occupant that is now (less than 12 months later) selling the property. They were investors and fixed up the property. I offer more than they paid but because they offered in first 15 days the program gave it ot them
Here is what I signed. However, I've been here 6 months and I have problem with neighbors, and my real estate agent said that the bank would not enforce the agreement below. It is obvious that I am not, and was not, an investor. Yes, I got my house, in the days right before the 15 day investor period ended. If your case, if the people who are selling the house, were clearly investors, you need to notify the selling bank, etc. My agreement says I would pay the $5000 penalty to the bank, and not any investor who might have been waiting in line for the 15 days to be over.
OWNER OCCUPANT CERTIFICATION
Rider to the Real Estate Purchase Addendum
REO# _____________
Property Address ______________________________________
This is to certify that consistent with the representation made in Section 4 Use of Property of the Real Estate Purchase Addendum, I intend to occupy, establish and use the above referenced property as my primary residence. I further certify that I am not purchasing this property with the intent to sell or rent it within twelve (12) months of occupancy. Furthermore, I fully understand that the sale of this property to me by Fannie Mae is conditioned upon my representation of being an owner occupant of the property.
In the event I falsely represent any statement in this certification, I shall pay Five Thousand Dollars ($5,000) to Seller as liquidated damages, which amount shall be in addition to Sellers right to retain any earnest money deposit and any liquidated damages held or covered by the Seller pursuant to Section 19 of the Real Estate Purchase Addendum or any other remedy available to Seller at law or equity.
____________________________________ ____________________
PURCHASER Date
___________________________________ ____________________
PURCHASER Date
Agent certifies that he/she has not knowingly submitted to Seller the sales contract and Real Estate Purchase Addendum for the above referenced property on behalf of an investor purchaser. Agent further certifies that he/she is aware of the penalties to the buyer for false certification.
___________________________________ ____________________
Looking for advice. Put an offer in on a small lake house. This will be a second home that I occupy as a secondary residence more than two weeks per year. We put the offer in after the 15 day cutoff (from my understanding) and it is nearly a month after we put the offer in, but we are still waiting on a signed contract from them. They just sent an owner occupancy form now, and it is like the one in Naeem5's post, and requires me to have that as my primary residence. I am not going to rent it out or sell it, but I clearly can't live in it. How long does the primary residence requirement last? I thought it was 15 days and so did my realtor.
What if a home is being bought by parents for their adult child & her family? Is that considered investor or owner-occupied?
I believe Fannie Mae makes an exception on the owner occupant rule if the buyer is buying the property for an adult child or parent IF they are legally handicapped. I don't know if that is still valid, and I haven't seen it for Freddie Mac. You would need to disclose it.
Remember, the form you sign says PRIMARY residence, so a vacation property doesn't count.
Fannie Mae's definition of a second home is distinctly different from a primary residence. Buying a second home under the guise of owner occupancy is misleading and could be considered fruadulent. Occupancy fraud is the number one type of fraud. Just so you are aware, the gold standard for occupancy on a property is how the home is treated on your 1040's. If you slap that property on Schedule E for a tax break, it's not an owner occupied home. If the interest is slapped on Schedule A, it's considered a residence.
...They just sent an owner occupancy form now, and it is like the one in Naeem5's post, and requires me to have that as my primary residence. I am not going to rent it out or sell it, but I clearly can't live in it. How long does the primary residence requirement last? I thought it was 15 days and so did my realtor.
15 days is correct. Hopefully your agent and the listing agent are in agreement as to when the clock started. You should ask your agent to contact the listing agent, who in turn can address the issue with the FNMA asset manager. If your agent is unsure as to how to proceed, then it should be escalated to your agent's managing broker.
We are foreclosing on our current home. My parents are helping us buy another. It is Fannie May. We have until June to get out of our current home and the house we found needs so much work..currently unlivable. Now they are telling us we have to be residence 60 days after closing or we could get up to a $10,000 fine. We were hoping to fix it up over the next six months. Is there away around the 60 days...what are the rules of "residency".
We are foreclosing on our current home. My parents are helping us buy another. It is Fannie May. We have until June to get out of our current home and the house we found needs so much work..currently unlivable. Now they are telling us we have to be residence 60 days after closing or we could get up to a $10,000 fine. We were hoping to fix it up over the next six months. Is there away around the 60 days...what are the rules of "residency".
No, there are no legal loopholes.
These lines are not blurred. The definitions on occupancy are very clear. Again, occupancy fraud is the number one fraud in this industry. And to respond to an earlier request: to share the methods used post-closing on a public forum is irresponsible, not to mention illegal. (Could easily be taken as advice for committing fraud).
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