HUD Property
How long do we have to keep a property bought from HUD(owner occupant)before we can sell it?loan is conventional, not FHA. 
How long do we have to keep a property bought from HUD(owner occupant)before we can sell it?loan is conventional, not FHA.
Technically? One year. In reality, depends on how "red flagged" for fraud is your aria.
HUD use to do inspect from time to time new owners because "investors" and "home owners" use to borrow rehab money and never do the thing, collect the rent then pull a lot of fast ones... NY was taking the lead of course ..but LA was trailing second quiet tide. Then in the game came all the other metropolis and the HUD start losing a lot of money so the rules had to be changed and tightened up.
Love HUD.
You have to sign an affidavit stating that you will live in the property for a year (maybe two) -- if your an officer or a teacher qualifying for 1/2 off I think it's two. HUD is extremely short staffed so I'm not sure how much inspecting they are really doing, but I wouldn't risk it.
Best of luck.
I had to sign a one year agreement. They swore they'd be by to check. Been here about 13 months now, and no ones banged on my door yet. Besides, it's your life, and life is unpredictable. I wouldn't say you're going to stay there for a year if you're not planning on it, but if something comes up and you have to move, I wouldn't sweat it. As long as your intentions were good and honest at the time of signing, I doubt you'd ever have a problem with them. Z
HouseHuntersUSA, you are the realtor with an office in shopping mall on Manchester? I've seen a lot of HUD listing in your storefront window. Any luck biding on those properties? MY experience is at the moment, they are waist of time.
In my area they are only requiring 6 months. This is for investor owned properties. It is 5 years for owner/occupied properties.
HUD does not require an investor to hold a house for any period of time, per the closing papers that I received. Once they sell it what business is it of theirs what I do with it.
Quote:
On 2004-02-05 00:49, omega1 wrote:
HouseHuntersUSA, you are the realtor with an office in shopping mall on Manchester? I've seen a lot of HUD listing in your storefront window. Any luck biding on those properties? MY experience is at the moment, they are waist of time.
No I'm not that Realtor. Although I've invested in HUD properties in the past, most people are paying turn key prices for fixers at this point in time. There is auction fever and I can't recommend buying any HUD properties in the Central Los Angeles region. If you go to the fringe of Los Angeles Co and into Riverside or San Fernando, you might be able to find something slightly under retail, but don't expect any super bargains. Multifamilies merit consideration since they are delivered vacant and you aren't inheriting tenants under rent control. However, if you bid, the winners generally base there calculations on rents and work backwards from there.
Another thing to keep in mind -- financing. Many lenders are now avoiding HUD properties liike the plague. Since many people are overpaying anyway it's hard to get the appraisal to come in.
Best of luck on all your purchasea, but be cautious on any HUDs.
In regard to HUD it all depends.
#1- You can bid as an "investor" and there is no time constraint. You can buy and sell immediately.
#2- If you bid as an owner occupant, you
have to stay a year. You also get the
5 day owner occupant priority marked on
the HUD listigs as 5 day o/o. All the investor bids do not even get looked at
for the first 5 days of the bid period. If there is a acceptable bid from an owner occupant, guess who gets the bid.
#3. They also give first priority to the teacher/officer program and the non-profits. They receive a 30% discount or a 10% discount. The 30% discount properties will be coded as "Revit" in the comments section which means the property is in a revitilation area.
Over the past few years HUD has suspended the officer/teacher program a few times due to fraud. About 4-5 years ago there was a police seargent on the East Coast who had each of his officers buy a house and a day later grant deed the house to him. They caught up with him and he went to jail!
So in summary, there are some good deals out there still to be had by HUD.
However, it is a diamond in the rough in most area. I would suggest if you are going to go this route and bid on HUD properties, you work out a deal with a
certified HUD broker and instead of paying the nominal 5% commission to the broker, pay $500.00 after closing to the broker. All HUD cares about is their
"Net to HUD."
Best Riches,
Jeff Adam
[addsig]
I've had decent success over the years with HUD properties - but it all depends on the timing and your persistence.
75% of the HUD listings (i was in FL at the time 94 - 96) were junk but those 'junk' properties were the ones that could be flipped or rehabbed.
I bought 2 in two years as owner ocuppy for 5-10% down and sold a few years later with a good profit.