Home Buying in Seattle>Question Details

Eastlakevent…, Home Buyer in Seattle, WA

Can fannie Mae recall their signed contract? The price listed on the contract is the lower offer, and it could be a clerical mistake.

Asked by Eastlakeventure, Seattle, WA Tue Apr 12, 2011

The buyer was the highest bidder for a REO at an auction. The original bid was rejected by the bank. The buyer signed an amendment to increase the bid by 15%. After a couple of days, the auction firm emailed the contract that was accepted and signed by the seller and the email was also forwarded to the escrow to execute. But the bid on the contract was the original offer, not the higher one in the amendment. In the next day, the auction firm emailed everyone to recall their message with the signed contract. Should the buyer wait to see what is going on? or contact a lawyer to review the signed contract and get it executed.

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Answers

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If the buyer wants legal advice, the buyer needs to speak with a lawyer. Don't consult a blog -- or Q&A forum -- for legal advice. 15% of the offer price might be a substantial sum that justifies the cost of hiring a lawyer.

That said -- and this is not legal advice specific to your situation, and I am not your attorney -- its not clear whether or not you have a fully signed contract in place (read your last sentence). Unless there has been mutual acceptance of a contract, there is no contract, although our case is complicated by the auction bid. Bottom line: if there's a few thousand dollars at issue, it merits consulting an attorney. And rely on the free advice you get here at your peril.
Web Reference: http://blackmonholmes.com
1 vote Thank Flag Link Tue Apr 12, 2011
Just like they said, speak with an atty.

However I had an instance with Freddie Mac about 4 years ago where they did almost the same thing. They sent the contract over for for $10k less than we had last countered. We weren't sure if they made a mistake or if they just realized that our original offer was in line or if there was something wrong we didn't know about! The listing agent wouldn't say. Of course I told my buyer about the potential risk but my buyer still signed immediately. I called the escrow company that FM regularly used and asked if they had seen this before and they hadn't seen FM retract any offers. Later on in the transaction they wanted to recall it. My buyer consulted an atty and I THINK they said they could get the sellers for specific performance if they backed out. Don't quote me on that. Eventually FM stayed put and we closed.

Good luck!

Jen
0 votes Thank Flag Link Wed Apr 13, 2011
A contract is written evidence of an agreement; if the contract doesn't reflect the terms of the agreement . . .
0 votes Thank Flag Link Tue Apr 12, 2011
By all means contact a real estate or contract attorney. This is a complicated question that we hardly ever encounter.
0 votes Thank Flag Link Tue Apr 12, 2011
Your buyers agent professional who can review all the documents... mistakes do happen however no professional can render an opinion UNLESS full sets of contracts are presented ANY and all communications

Confer with an attorney if you don't have an agent

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Apr 12, 2011
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