Bought an REO and the bank thinks........ - Posted by johnman

Posted by johnman on March 19, 1999 at 19:49:16:

PHIIIIIIIIILLLLLLLLLLLLLLL,

How are you buddy? It’s good to hear from you!!
Thanks for your input. I do intend to live in it but if someone steps up and the money is right I will sell. I just want to be sure that I will not be penalized.

I have been busy with another project. It will be completed next week. A L/O with me doing the rehab. THe cost is loan balance of about $39K with $17K of repairs and will sell for about $85K. I’m just waiting for my appraiser to come back with an estimate of what it would appraise for.

Well, see yah later.
Johnman

Bought an REO and the bank thinks… - Posted by johnman

Posted by johnman on March 19, 1999 at 17:23:57:

Hi folks,

I will be closing on an REO next Tuesday (Mar 23). The mortg co. I’m going through knows I’m buying this property as “my residence” here in Georgia. The question is how would the bank see it if I sell the property a month or two later? Does the loan have to be seasoned before I can sell? The loan is FHA.

Purchase price is $88K and the appraised value before repairs is $108K. It needs about $1,500 worth of repairs mostly updates in the kitchen.

Thanks,

Johnman

Re: Bought an REO and the bank thinks… - Posted by Jason-DTX

Posted by Jason-DTX on March 20, 1999 at 11:25:20:

As long as its your intention to live in it then you should be ok. The banks don’t want you get owner occupant loans for investment purposes. If you move in then something unexpected happens and you move out early, how will they know? That happens some times. As long as you don’t make a habbit of it you should be ok.
Jason

fha… - Posted by Kev.

Posted by Kev. on March 20, 1999 at 24:13:44:

We had a similar situation that was not an FHA loan, though.
Our attorney pointed out that “reasonable circumstances”, per the mortgage, for moving sooner than a one year time, allowed the occupier to do so. That left a very broad definition. They moved and the bank did nothing.
FYI
Kev.

Re: Bought an REO and the bank thinks… - Posted by phil fernandez

Posted by phil fernandez on March 19, 1999 at 19:36:13:

Hey John,

How’s it going. Not sure if this will answer your question but, I bought a HUD repo in Dec 1998. In order to bid on it when I did I had to sign anowner/ occupent affidafit. In other words I had to occupy the house for a 12 month period. Why did I do that. The house was worth $85,000 and I got it for $40,150.

If you don’t have an HUD stipulation that says you have to occupy it for 12 months Than you might be okay.

Suppose you were buying the house with the intent to occupy it. Whose to say what exactley the intent was. You could certainly at the start want to occupy the house and then decide it isn’t for you and sell.

I would consult your attorney to see what he says.

Re: Bought an REO and the bank thinks… - Posted by Johnman

Posted by Johnman on March 22, 1999 at 14:21:36:

Jason,

I appreciate the input! “Something unexpected” will happen.

See yah buddy!

Johnman

Re: fha… - Posted by johnman

Posted by johnman on March 22, 1999 at 14:19:17:

Thanks Kev. That’s good to know!

Johnman