I forgot to note: The city's website does not indicate that this home has a valid rental permit. Is this home a registered rental? The website indicates that it does not have a permit.

Ron, I will look into this on Tuesday. The City is closed on Monday.

Thank you! The back yard is turning into a parking lot.

It appears that it was purchased by Richards on Foster Ave. It isn't homestead and it should be a registered rental unit not being occupied by owners. I would only guess the city needs to update the owners to read the same as the taxpayers. Whatever the case, it is very frustrating when the city doesn't update the public information and do so correctley.

I find it odd that a foreclosure can be transferred from the bank to HUD, HUD can then sell the home to a buyer, and then that buyer can turnaround and rent it out.

There are so many questions here: Is it legit? Are terms being violated with the renting of the property? This could all be OK and asset management, but I would like to think that HUD is encouraging home ownership. Aside for the HUD-rental issue, this home appears to not be registered (according to the city's website) and they're parking on the lawn.

Thank you for reporting this. I'll pass this along to Code Compliance so they can send someone out to take a look.

Cordially,

Holly Stanley
Planning & Neighborhood Development

A HUD home CAN be rented if the buyer pays cash for it OR does a conventional mortgage with minimum 20% down.From the size of this home I'm guessing it would have been one of the smaller priced homes and after waiting a prescribed period of time...investors are allowed to purchase Hud reos.If they have set up a lease option or a land contract with the occupants...it escapes rental licensing.

Hi Bobbie -- Thank you for the insight. Interesting.

I've inquired with HUD's Detroit field office to get the lowdown. And I found the following:

http://www.dummies.com/how-to/content/buying-an-owneroccupied-hud-home.html

There are so many unknowns here. The field office should be able to get to the bottom of this. If it's legit, then so be it. The lawn shouldn't be a parking lot, though.

Sorry..I guess what I wrote made no sense..been a Realtor too long I guess...I think EVERYONE knows this stuff!.This was sold by HUD to a CASH buyer in August ..therefore there are NO restrictions on how it is used.He paid $14,000 cash and has the right to rent it....live in it...sel it on land contract....fix it up and resell it...whatever.NOW...we don't know if he is in fact RENTING it or if he has put it on something to avoid having a rental inspection/licensing..something like a lease option or a land contract.It has always been my understanding that the City will NOT treat something as an owner occupied unit UNLESS that land contract or lease option is recorded and they have been given a copy of it.The parking issue is completely separate.you're right...it shouldn't be used that way..problem is trying to find the right department to handle it now that they all seem to operate separately from each other and don't cross communicate.Only thing we DO know is that it ISN'T Hud's problem since they sold it already and it is off their books.

HUD is investigating this matter. And the city sent a letter about the parking. Thank you everyone.