tell me about fanny-mae / REO

[look 171]

I bought a fixer cabin in our local mountains. They accepted our offer and we finally signed docs and the plan was to close in 10 days with the title report in place and without any contingencies. With three more days to go, they decided to pull it from under us ad re-listed it again this morning. I ask my agent to resubmitted again only to find out that they refuse to accept our offer. WTF? I am told they don't have to give me any explanation. I am f'king piss to say the least. Any thoughts?

Jeff

[porsche4life]

Fannie Mae is known for playing games with REOs sadly. If your agent hasn't been talking with their broker, call the broker. I've never heard of this, but I will ask a few brokers later this week and see if this is a trend, and/or if they have been able to get around it.

[look 171]

Thanks Sid. Even if I don't get the house, I like to know where did it go wrong.

[porsche4life]

No problem. It's a good learning opp for me too. Never heard of them flat refusing an offer like that. Did you up your offer or change it in any way the second time?

[look 171]

No. We had an accepted offer in writing after back and forth with the final price over freaking 20K. My agent drew up the docs and we signed (can't sign over the computer) and submitted before the 24 hour dead line.

We re-submitted our offer once they re-listed this morning. my agent did it before he called me. The offer was at the exactly the same amount cash and no contingencies. Ask your friends that if Fanny-Mae or the REO manager at the banks have to right to play God to sell or not sell to someone based on ...?

Fanny-Mae wants to know if it will be owner occupied. 90 % of the houses up there are people's 2nd or vacation homes, so maybe that's the reason? Its eating me up, I will have a hard time sleeping tonight.

[porsche4life]

That may be what got you. I seem to recall hearing that they were on that band wagon lately. I'd think you would be OK though since it will be owner occupied, just not as a primary residence? Strange, but most of the agents I've talked to lately say fanny changes the rules almost weekly.

[look 171]

What I am pissed about is that they should have told me from the get go and not wait and get my hopes up. As I type this, I would have closed in two more days. That's the pisser. This is suppose to be the house my kids and I restore together.

[john70t]

Originally Posted by look 171

We had an accepted offer in writing...

This might be pursuable, if it's worth it.

[look 171]

Originally Posted by john70t

This might be pursuable, if it's worth it.

How does that actually work in my situation? It would take a huge amount of money on my part to actually go after a big gun like Fanny-Mae. I am sure they have big expensive lawyers protecting them.

[porsche4life]

It would depend on the exact language used in the contract, and what reason they have for canceling it. But likely it would be cheaper for you to buy another house than to try to fight that.

[look 171]

It seems that way, Sid. There is no other house on the block or the area that size for under 7 or 800k. That's the big kids playground. For a vacation home, that's nuts. This house has no drywall. The plumbing, electrical, window and doors are shot. Some structural issues as well, so I have not idea why they want to keep or pull a POS like that away while there is a solid buyer with all contingencies removed. It sat on the market for three months without any offers. finally they lower the price.

Let me know what your friends are saying about fanny mae will ya?

[KFC911]

Originally Posted by look 171

I bought a fixer cabin in our local mountains. They accepted our offer and we finally signed docs and the plan was to close in 10 days .....

. I am f'king piss to say the least. Any thoughts?

Jeff

You didn't "buy" anything imo. I'd be pissed too, but life is short and there's no need to "piss into the wind" imo. Me....I'd forget about it at this point and move on rather than waste emotion, time and energy on this one....good luck!

[Joel8005]

Over the past few years we have had several deals pulled out from under us, not only from Fani but Fedi and the large banks / lenders. In the real world with a arms length transaction you would have some legal recourse provide you had a full executed contract but as the agent stated they do not and are not willing to provide you any further information about the deal.

No real help just past experience and yes every time it happened we were pissed and had to try and explain this unethical practice to clients.

[osidak]

Once put an offer on the table for a house that was being sold short - the banking holding the lien told us the offer was good (was a cash offer). Was told the process would take 10 days to complete and then we could start the closing process. 10 days later the bank came back and told us they wanted 90k more - I told them to pound sand and walked. Bought another house instead.

The house sat another year before it finally sold for less than my offer. I say ****'em

[on2wheels52]

"I bought a fixer cabin in our local mountains........There is no other house on the block or the area that size for under 7 or 800k."

Just a couple of questions.
An $800k cabin? And I wouldn't expect cabins to be organized into "blocks".
But then I left CA in the early 80's.
Jim

[look 171]

Originally Posted by on2wheels52

"I bought a fixer cabin in our local mountains........There is no other house on the block or the area that size for under 7 or 800k."

Just a couple of questions.
An $800k cabin? And I wouldn't expect cabins to be organized into "blocks".
But then I left CA in the early 80's.
Jim

hahahah the damn thing sure seem like its sitting on blocks. No, no real city blocks but winding roads right off the lake into the adjacent hills. Its Arrowhead spitting distance from the lake with lake rights. I buying (was) a shell and the land.

[john70t]

Originally Posted by look 171

How does that actually work in my situation?

(not a lawyer)
Guessing from the legal angle it might be bait-n-switch fraud, abridging contract, redlining discrimination if they planned to diversify the neighborhood, or some other reason. I'm not sure of the homestead vs. rental thing.

You must have some kind of damage to pursue.
Time, and frustration, and long-term dreams crushed is not one of them.

Going from the negative:
They could probably give any reason in the book.
Plus you are a hearsay 3rd party to what your crappy agent did during contractual negotiations.

[look 171]

John, I am sure they are trying to suck more money out of me. If I find out there is another offer by the listing agent, them I am really going to have a red piss off face because she might not have submitted it or make sure its late so fanny mae will drop me. Who knows and I am not sure if there anything I can do about the dirty dealings. The excuse could be, " I screw up, I forgotten it so I was late with submitting your offer, sorry"

Potentially we have a huge financial gain over the years on this property and that is not one of ways where I can get after them that's for sure. Time and frustration isn't worth much but a headache and $$$ for me.

I looked at it from all sort of angles. My agent shouldn't or can't screw up. It a slam dunk for both the selling and buying agents. Its all cash, no loans, appraisal, nor inspection and they can have their money in 10 days. I really don't think he will screw that up. The money is too easy.

[john70t]

This goes well above my pay-grade and limited brain, but start from a base:
-Agent is a "buyers agent" by contract. Not dual agent.
-Agent fulfilled all timely communication/paperwork obligations of his/her trade.
-Agent did not relay proprietary/personal economic information of the buyer to the seller at any point.

-Contract was for a property fully owned by seller.
-Contract signers were verified representatives of Fannyassjerks, and had full authority to act as sellers agents.
-Contract was agreed upon in writing, through verified methods.
-No other outstanding contingencies applied to Transfer of Title, as witnessed by seller.

-Buyer had verified means for payment of property transaction.
-Buyer even waived all other possible outstanding contingencies and accepted responsibility for such.
-Buyer and buyer's agent complied with stipulations of all governmental forms and timelines.

-Seller agreed to transaction in writing
-Seller then reneged inexplicably without reason.

-Buyer lost ???
[potential earnings based upon historic data? family homestead and enjoyment? something]

[look 171]

Originally Posted by john70t

This goes well above my pay-grade and limited brain, but start from a base:
-Agent is a "buyers agent" by contract. Not dual agent.
-Agent fulfilled all timely communication/paperwork obligations of his/her trade.
-Agent did not relay proprietary/personal economic information of the buyer to the seller at any point.

-Contract was for a property fully owned by seller.
-Contract signers were verified representatives of Fannyassjerks, and had full authority to act as sellers agents.
-Contract was agreed upon in writing, through verified methods.
-No other outstanding contingencies applied to Transfer of Title, as witnessed by seller.

-Buyer had verified means for payment of property transaction.
-Buyer even waived all other possible outstanding contingencies and accepted responsibility for such.
-Buyer and buyer's agent complied with stipulations of all governmental forms and timelines.

-Seller agreed to transaction in writing
-Seller then reneged inexplicably without reason.

-Buyer lost ???
[potential earnings based upon historic data? family homestead and enjoyment? something]

You earned your pay grade.


yes to all but highlighted line. We did give our verification of funds. it was substantially more then the asking price. Maybe that was the downfall on our part. I purchased properties over the years, I have never had an issue with the selling party asking for more based on the amount we had in the bank. Maybe fanny**** did? Those greedy bastards and that money doesn't go to them personally. So, what the fk? Only 160kl was owed on the note.