Thank you for all your replies. I learned some good advices here.We made 270K offer because there was a property (smaller) in the same gated community in sold for 245-250K(standard sell w/ asking price of 240K) just weeks ago. We were planning to use conventional loan and some extra cash, but we used homepath loan instead because it does not require any apprasials. We thought the bank would preferred it. We were willing to make this high offer because this house is in a location that we want to settle for lifes.Just FYI, I called the Homepath fraud hotline, they said they would not check unless someone report to them. The penalty is 10K but they would not take the property back. It just like having you sign ' I am a good citizen' agreement and that was it. What a total crap...At this moment we will step out and take a short break from this sick market. Thank you
To wetdawgs,Yes, you can say it is a tremendous amount of spectlation. Living in SoCal for decades we know there are many cash buyers who buy house as primary or secondary residence, but there are A LOT more flippers and investors around, and the area we look at are not popular.I don't have a spare time and money to sue unless I were a lawyer myself, I am a well-educated personnel work in healthcare. My point is this so what called 'firstlook' program or whichever they called it that aimed to favor owner occupants do not exist. It is full of loopholes and flippers are not known to be honest people. The bubble is starting again.Are you one of them? To bulkmoore:Thanks for your suggestion. We will find out who got the property and see what we can do from there.
We just lost an offer to a cash offer on a property asked for 202K in a gated community(all modular home). We have been watching for this community for 6 mos and made a solid offer of 270K thru homepath..Our agent thought we would win as well.We were ok to lose to someone else(first home owner like us) who bid higher than us, however, we highly suspected if someone who have all cash will buy a house in that gated community intends to live there..on the other words, A FLIPPER. I read a lot of forum that flippers bid HUD and Homepath 'First-look' property as an owner occupant and cheated. The question is..who can verify the truth, that they are true owner occupant? Will Fanne Mae check them ? The requirement for an 'owner occupant' is t live there for at least a year. And the penalty is 10K. If I were a flipper, with the current inventory is so ridiculously low, why not give it a shot? 1 year fly fast and even I got caught, it is only a 10K penalty.We are just very upset because we are willing to pay so much more to our dream home but still lose to a cash flipper, and feel like unless you have hundred grants on hand, one can NEVER buy a house (except undesirable area like downtown LA, lancester) regardlesss it is a standard sale, REO, HUD, or Homepath. Any opinion/comments would be appreciated!