Posted by Karen McCall on November 07, 1998 at 16:33:50:
It used to be that you didn’t have to worry so much about that, but the the SUE SUE mentality everyone is looking to nark everyone else out. Usually what happens is:
Neighbor wants to buy house/duplex, can’t for some reason, you buy it claim to be an owner/occup. get a great deal then choose not to live in it after the owner tells the neighbor that the reason you got such a great deal is that you plan to live there,you close on the property, and don’t move in, neighbor calls lender, lender gives neighbor the HUD inspection hotline # neighbor calls and WHAMO the inspector shows up with a summons to a HUD review and YOU’RE SCREWED, HUD has their own hearing they have their own board who decides the case and they want $250,000.00 which is mentioned when you sign that you are going to Owner Occupy, as well as they won’t allow you near a HUD, VA, Or mortgage with PMI for atleast a year and a half, they can do this for your lifetime, but first offenses usually only get the 1.5 years.
By the way the neighbor buys the house at the lenders auction at a good price and makes a bundle.
Just thought you ought to know the real deal----been there done that.