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I'm about to buy a property from ROE / Bank owned and it said it is for owner occupied .

Grambling, LA |

I'm about to buy a property from ROE / Bank owned and it said it is for owner occupied . I am working in different state and I will be occupy my house from time to time . I'm not sure if that can be considered as owner occupied or not .

Attorney Answers 1

Posted

In order to qualify for an owner occupied mortgage for a REO property, the home MUST be your primary residence. Although this does not prevent you from working in another state, it is advisable that you be extremely cautious. If this home will not be your actual primary residence, you should disclose that. Many lenders are beginning to pursue legal remedies against buyers who are lying about whether the home will be their primary residence. I highly suggest you consult a Title Attorney regarding this issue.

Information provided in this response is intended to be informational or educational only. It in no way establishes an attorney-client relationship. Because every case is factually dependent, it is not possible to accurately answer each question posed. If you have sincere legal concerns, it is highly recommended that you seek legal counsel in your area. Any response is not intended to create, nor does it create, a continuing duty to respond.

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5 comments

Asker

Posted

The thing is i'm going pay by cash. I will not make a loan for the property.

Tiffany Dianne Garland

Tiffany Dianne Garland

Posted

Does the listing say it IS owner occupied or that financing will be available for owner occupied. There is a drastic difference between the two.

Asker

Posted

Oh I have to read it again. Thank you very much for your information.

Tiffany Dianne Garland

Tiffany Dianne Garland

Posted

Also, regardless of how you pay, if the listing specifies that it is for owner occupied buyers and you know it will not be your primary residence, you are misrepresenting your intentions for purchasing the home. Generally, with REO properties, owner occupied buyers are given preference to non-owner occupied buyers. If you will not be making this home your primary residence, despite paying by cash, I suggest you disclose that you will not be occupying as a primary resident. Otherwise, you may be on the receiving end of a lawsuit.

Tiffany Dianne Garland

Tiffany Dianne Garland

Posted

As always, be sure you get all the info you can if it is currently owner occupied. Properties that are currently owner occupied are delicate to handle for obvious reasons (the owner is being forced out by foreclosure, etc)

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