Does owner still need to occupy home?

Views: 549

Reply to This

Replies to This Discussion

Can you please clarify a little more? Do you mean to be eligible for short sale?

Terri,

 

     If the borrower(s) have been out of the property for more than 18 months they can not participate in a Pre Foreclosure Sale. Also, HUD has regulations that if the property is vacant, it needs to continue to be maintained if pursuing a short sale.

[email protected]

www.ishortsalenow.com

310-564-6389

The Property per FHA PFS Guidelines cannot be rented for more the 18 months for the Servicer to approve the Borrower into the PFS w/o prior Approval from HUD.

http://portal.hud.gov/hudportal/documents/huddoc?id=nscpfsfaq.pdf

If the occupancy status comes into question though the Servicer will generally refer to HUD for a Variance Approval in order for the Homeowner to participate.

I've never seen HUD deny a Variance due to the occupancy status.  Almost every single FHA PFS I have closed has not been occupied when the ATP was issued.

Terri - You generally can have the seller write a second hardship letter stating why and when they had to move out. For example, if someone had a medical illness and could not use the stairs to go to their bedroom, or a forced relocation, etc.

Here are the FHA guidelines about occupancy: "FHA loan rules state the borrower applying for a new purchase single family residence must use that residence as the primary occupant or as the “primary residence”. If you want to buy a home, the FHA expects you to use it as YOUR home. Additionally, 'FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance.'"

The answer: Yes the owner needs to occupy a home under a FHA loan.

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************