Lying could be a $10,000 mistake!

Fannie Mae, Freddie Mac, and HUD give priority to owner occupant buyers, and all three require buyers to state whether they are owner occupants or investors. Don't even THINK about misrepresenting yourself as an owner occupant if you will not personally be occupying the property. As a listing agent for Fannie Mae and HUD, I am sometimes asked to do research to verify that a bidder is, indeed, an owner occupant. I am REQUIRED to report it, if I suspect misrepresentation. I take that responsibility very seriously.

The following is a statement you will be required to sign if you are making an owner occupant offer on a Fannie Mae property (the others have similar statements):

This is to certify that consistent with the representation made by me in the Real Estate Purchase Addendum, Section 4, Use of Property, I will occupy, establish and use the above-referenced property as my primary residence within 60 days after the Closing and will continue to occupy the property as my primary residence for at least one year after the date of occupancy, unless extenuating circumstances arise which are beyond my control. If the property is a multi-unit property, I may rent units other than the unit that I occupy as my primary residence. Furthermore, I fully understand that Fannie Mae is relying upon my representation of being an owner occupant of the property, and that the sale of the property to me by Fannie Mae is conditioned upon this representation.

In the event that I do not occupy the property as my primary residence in accordance with the above certification, I shall pay Ten Thousand Dollars ($10,000) to Seller as liquidated damages, which amount shall be in addition to Seller's right to retain any earnest money deposit and any other funds then paid by the Purchaser as liquidated damages pursuant to Section 19 of the Real Estate Purchase Addendum and any other remedy available to Seller at law or equity. Additionally, I agree to pay Seller's reasonable attorney fees and costs incurred by Seller in enforcing its rights hereunder.

The listing agent and the agent for the buyer also have to sign the certification. The agent on the buyer side signs the following:

Agent certifies that he/she has not knowingly submitted to Seller the sales contract and Real Estate Purchase Addendum for the above referenced property on behalf of an investor purchaser. Agent further certifies that he/she is aware of the penalties to the buyer for false certification.

Listing agents sign the form, as well.

Listing broker/agent is hereby notified that if, for any reason, you have concern that the Owner Occupant Certification made by the PURCHASER(S) or SELLING AGENT is false, misleading or a misrepresentation of the truth that you should report this concern to your Fannie Mae sales representative or Asset Management Provider.

I have read and understood this notification.

Buyers can read about available properties and purchase options by going directly to the websites. Remember, though, you will need a local agent to help you make an offer. Buyers must work through a licensed agent to deal with Fannie Mae, Freddie Mac, or HUD. NOTE: Fannie and Freddie offers can be written by any licensed agent and presented to the local Freddie listing agent. HUD offers go directly to HUD from a local agent, and that agent MUST be registered with HUD. Ask both the brokerage and the agent if they are HUD approved (it takes 4-6 weeks for a brokerage to get registered, so find a HUD agent if you plan to offer on a HUD foreclosure).

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If you are looking for a foreclosure in Cape Girardeau, Perry, N. Scott, or Bollinger counties, I am the region's most experienced REO agent. As the area's ONLY Fannie Mae direct listing agent, I list more foreclosure properties than any other agent in this MLS. I am HUD apporoved to list and sell.

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www.homepath.com for Fannie Mae properties

www.homesteps.com for Freddie Mac properties

www.HUDhomestore.com for HUD properties (foreclosures that were FHA financed)

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