Home Buying in Atlanta>Question Details

stevecjohnson, Home Buyer in Homosassa, FL

Is it my imagination or is Fannie Mae (and its inner circle of Realtor s) playing by rules that are lawbreaking in the normal court of law?

Asked by stevecjohnson, Homosassa, FL Wed Jun 26, 2013

We submitted a full price offer for a Fannie Mae owned property. The listing agent countered with his terms and conditions, via email, which we accepted through our Realtor, with no changes. Over the weekend, another offer came in (by reasons that can be left to imagination) and come Monday morning, the listing agent found excuses not to accept what he had put forth himself! Are any Fannie Mae proceedings prior to sale just garbage that has no substance? Yes mam. Fannie Mae has a good thing going. Do what benefits FM and to hell with the consumer...

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Fannie Mae's counteroffer emails states:

"Keep in mind that the seller has the right to withdraw this offer, consider another offer, or place you in a Multiple Offer round where you will be asked to compete with other potential buyers. All counter offers are subject to the terms of the Real Estate Purchase Addendum. The buyer's acceptance of a counter offer does not constitute final acceptance until reviewed and acknowledged by Fannie Mae."

They tell you very clearly in the last line that you acceptance of a counter isnt binding until they say it is.
3 votes Thank Flag Link Wed Jun 26, 2013
And that FNMA "review" takes as long as they need to generate overpriced offers. Then the agents will push the homepath mortgage because that doesn't require an appraisal....and poof - the next generation of underwater buyers.

And now FNMA is "helping" with short sales.....even more fun awaits and several real estate publications are calling them out -

http://hankmillerteam.com/2013/02/13/is-fnma-forcing-owners-…
Web Reference: http://www.hmtatlanta.com
2 votes Thank Flag Link Wed Jun 26, 2013
Couldn't agree more about the lack of appraisal needed. What is funny is Fannie will actually make money if the Homepath buyer defaults because they held the note to begin with.
Flag Thu Jun 27, 2013
As with any contract, it is not binding until all parties have officialy signed. Fanne Mae reserves the right to entertain other offers until that time, just as pretty much any seller would.
1 vote Thank Flag Link Wed Jun 26, 2013
The offer was submitted through my agent.. Does FM require my agent to submit directly through their system or is my agent supposed to submit to the listing agent and in turn he submits? I'm not sure what transpired.
There just seems to be so much leeway for the listing agent to do as he and FM pleases, even after acceptance, whether acceptance is by counter offer, addendum, contract, email, or on the back of a dirty napkin. A deal is a deal. The system is designed treat the buyer as a tool, to mold the unwitting (me) into a variety of configurations until they find one that pleases them most.

I appreciate everyone's comments.
0 votes Thank Flag Link Thu Jun 27, 2013
Did you put an offer in with your agent or the listing agent? Fannie Mae is requiring all offers to be submitted online through their system. If and when you get the addendum to the contract it does clearly state that until all signatures are received they can go with whichever buyer they choose. If you are going to work with REO sellers you best have an agent that knows and understands these transactions.
0 votes Thank Flag Link Thu Jun 27, 2013
Dealing with transactions on government and bank owned assets requires extra vigilance and always includes some unorthodox practices, and at least one flies in the face of the GA Real Estate Commission Rules - namely, regardless of what the seller wants or directs the listing agent to do, an agent is not allowed to delay timely submission of all offers, and is not allowed to hold offers back and only submit one - the later happens all the time.

Best,

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0 votes Thank Flag Link Thu Jun 27, 2013
Steve, Unfortunately your agent did not move quickly enough secure the listing agents attention and insist that Fannie Mae provide written confirmation of acceptance. Most lender contracts have provisions in them that that allow them to terminate without penalty and refund the earnest money. anyway.

The practice of offer shopping is rampant. In a similar situation I escalated the issue to a Senior VP of marketing at Fannie Mae, who stated he is aware some listing agents will attempt to get their pocket buyers to offer more than a verbally accepted offer and then submit the higher one for signature. That as in the case reasonable extensions of 5 days are denied and a higher listing broker offer is presented and accepted. He went on to say Fannie Mae did not have a problem with this conduct. I was surprised but that is where we are at. This agent on the other side of the my transaction has 10+ highly negative ratings on Yelp, Kudzu, Angie's list. If a sufficient number of negative reviews are posted, these less than ethical and honorable people will harm fewer and fewer people.

We live in a very different society handshake, verbal and agreements in principle are worthless. I want people to trust my word, have confidence in my agreements, when dealing with others I advise "A handshake agreement isn't worth the paper it's written on" It is a bad policy to trust anyone these days.


Bruce Ailion,
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0 votes Thank Flag Link Wed Jun 26, 2013
You forget that FNMA is now under Uncle Sam's thumb, there are no rules. Just ask the IRS
0 votes Thank Flag Link Wed Jun 26, 2013
here here.
Flag Thu Jun 27, 2013
In the construction industry, there are names for these practices. Price shopping, bid rigging, collusion I'll get over it but certainly more experienced in how this industry polices itself.
0 votes Thank Flag Link Wed Jun 26, 2013
All the responses below sum it up and basically it doesn't matter until you have a binding contract. The new offer may fall out of contract and they will come back to you if that happens.
0 votes Thank Flag Link Wed Jun 26, 2013
Just as Ava predicted, the house is back in my court. Not sure what happened but it happened. Thanks!
Flag Fri Jun 28, 2013
Yeah, Steve...get over it.

"Rules that are lawbreaking in the normal court of law..."

Really?

3 thumbs up for Levi, Hank and Rodney's answers.
0 votes Thank Flag Link Wed Jun 26, 2013
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