Home Buying in Washington>Question Details

jess, Home Buyer in 98226

HELP! Buying a home from fannie mae, only to learn that they don't have the title!?

Asked by jess, 98226 Thu Dec 27, 2012

My husband and I have been in the process of buying a home from fannie mae for the past 4 months. After the loan cleared underwriting and was approved by USDA we thought we were in the clear, but it turns out that fannie mae does not hold the title. Apparently, the house was foreclosed upon by Bank of America and fannie mae agreed to buy it, but hasn't yet. We have extended the closing date 3 times waiting for the title transfer to happen. Both our agent and the selling agent say that there is nothing to do but be patient!?!?! Additionally, neither agent has any human contact at fannie mae. The only status updates available come from fannie mae's website that is written in some sort of cryptic Vogon language that not even the real estate agents understand. Extraordinarily frustrated; any advice would be greatly appreciated!

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Hi Jess,
I'm sorry for the difficulties you're having. I have 2 pieces of advice; be patient and keep your eyes open. If something better comes along, you are in a unique position to potentially take advantage of it. It may mean walking away from the work you've put into obtaining this house, but the end is uncertain and you have some options. By keeping your eyes open and perhaps investigating other opportunities, you may find something worth moving on to. If not, you can take added solace that this one is worth the wait.
I just thougth of a third piece of advice, watch your credit activity. Don't buy anything major like a car or pay anything late or you could end up waiting for nothing. Best of luck.
0 votes Thank Flag Link Thu Dec 27, 2012
I suspect that there is more going on here--some defect in the foreclosure that is keeping them from gaining marketable title. Sometimes the explanations you get back don't adequately explain what is going on because the person conveying the information doesn't understand what is going on.

I had a sale last year where shortly prior to closing I received a non-sensical explanation of a problem with title. Fortunately I was able to get them to close the deal. It was only after closing I learned what the problem was, and it was entirely different than the information being conveyed prior to closing.

You might want to contact an attorney to review the title report and the prior foreclosure.
1 vote Thank Flag Link Fri Dec 28, 2012
All you can do is what you are already doing per what the others have said. If you are out of patience, you can always go look for another home. Good luck to you.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
0 votes Thank Flag Link Thu Dec 27, 2012
Dear Jess;

Per my experience the local brokers that represent fannie mae foreclosed properties do an excellent job of making these deals close. Sometimes the situation is out of their hands, and all that you can do is to lay low and wait. Fannie mae is a huge bureaucracy that may at times seem as if it does care about the buyer's situation. And fannie mae doesn't care. It's a huge corporation living off the government's largesse, and you have to play by their rules.
So...just hang in there and listen to your brokers. Hopefully you have not one but two good ones. Just remember, unless the home closes neither agent will be paid...and getting paid is a pretty big incentive in the realty world. So rest assured they're doing what they can.

Good luck,

Rob
0 votes Thank Flag Link Thu Dec 27, 2012
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