Sometimes the cops turn out to be the robbers. Officers who receive the FHA discount must live in the property as their primary residence for at least three years after the purchase. He leased the house to someone else and began collecting rent.
Many home buyers do that.
After living in their homes for a while, they move elsewhere and rent the old place. But they fail to notify their lenders, who still believe they have a mortgage on a primary residence. In some instances, buyers outright lie about their intentions to live in the property to obtain a lower rate interest than they could as investors. In Sims case, though, not only was he getting a house at 50 cents on the dollar, taxpayers were picking up the difference. And when HUD asked him to certify that he was still living in the house, he admitted in court late last month, he falsely said that he was.