Phone: 480.370-3214 scottsdale arizona real estate, scott farmer realtor
Scott Farmer

Fannie Mae Foreclosures – Can Be Flaky Dealings

Fannie Mae Foreclosures Home Sales

Here is the latest on a Fannie Mae sale I’m involved in.  (Keep in mind I did an all cash deal earlier in December with Fannie Mae and we didn’t close on-time either) because of the title company and seller.

The transaction began by taking at least two weeks to get the executed contract back from the seller (Fannie), after we had received verbal approval on the offer – okay, I can handle that except the executed contract was finally delivered a few days before Christmas with a January 17th COE date.  I knew from the start it was going to be tight to do FHA financing when we had two major holidays between acceptance and closing.  My assumption was correct and we finally received lender written instructions on the loan at the title company the day following the scheduled closing date.

My buyer did not receive HOA docs until the Friday before closing and I never saw the prelim title commitment until the lender kindly sent me his copy a few days before closing as I could never pry it out of the title companies hands. I should also point out that closing was set by a government agency and the day that was selected was a Federal holiday. Again, not a problem — I just found humor in it. Next we learn that the buyer’s first name is spelled wrong. Again, not usually a big deal BUT, for Fannie Mae it is. So, guess what — the entire Purchase Offer and Fannie Mae addendum has to be redrawn and signed again by the buyer. What was really amazing was just how fast Fannie Mae turned around that set of docs – just two short days.  Fannie to my delight also extended the closing date to the 25th and as it is a mystery to me, increased the seller contribution amount to my buyer for closing costs.  Well, now we have more money which is a good thing as my buyer would really like to get a home warranty -

BUT, now we have to get lender approval on the revised HUD-1 and get the seller to approve, yadda, yadda, yadda, clock ticking.  Did the walk-through yesterday and now there are tiles heaving and cracking in the family room.  This was something new, and also, not the same condition as we found the home at the time of writing the offer. My buyers are so tired of the delays they said don’t worry about it let’s just get it closed and they will deal with it themselves. Perhaps the seller already knew about the floor and that’s why my buyers received extra closing cost allowance?  But, I have cautioned my buyers that it could be an error and if it is guess what — expect more delay in closing!  It took about 7 days to get seller approval on the HUD-1 for an all cash deal with Fannie Mae last month.  I’m wondering how long it will take this time and if my loan docs will expire before we get approval.  Well my cautionary tale is REO’s are usually easier than short sales but, lately the Fannie deals seem to get hung up in the most unpredictable ways. Keep you fingers crossed we finally get this closed before February!

480-948-0550 Ask for Scott & Sandy Farmer, REALTORS®, GRI, and remember, when it comes to real estate: “It’s A Farmer’s Market