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Hancy, Home Buyer in Seattle, WA

What if I passed the deadline of incentive of fannie mae by seller's faults?

Asked by Hancy, Seattle, WA Wed Jun 29, 2011

I try to buy fannie mae owned house. My loan is ready to fund and everything is ready for buyer's side.
However, fannie mae failed to show the proper title and my closing will be delayed. And we will pass the deadline of incentive (3.5% at closing). In that case, do you know whether fannie mae will also extend the deadline of incentive or not?

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That is a very good question.
Contractually, they do not have to honor the discount.
Practically, I have seen this happen several times and they have always extended the discount through closing.
Web Reference: http://www.philipleng.com
2 votes Thank Flag Link Wed Jun 29, 2011
They didn't extend on the agent bonus due to their own delays. Hope you get the closing costs especially if they affect your ability to close. It certainly would be in their best interest to deliver on the offer.
0 votes Thank Flag Link Wed Jun 29, 2011
Your Agent and adviser AND the listing agent are the best persons to handle these issues.
Read the fine prints in the contract about disputes or delays (seller caused).
0 votes Thank Flag Link Wed Jun 29, 2011
Thanks Hancy. I'm with Phil...and gave him the thumbs up. Hope your result is as he indicated. My best guess is he is right, and certainly that is "our" hope and expectation.

Very much appreciate your offer to come back and let us know how it turns out.
0 votes Thank Flag Link Wed Jun 29, 2011
Thank for answering
we added the condition in which our incentive will be effective at final closing, in extension addendum anyway.
I do not know whether fannie mae will approve or not.
In etheir way, I will post the result
0 votes Thank Flag Link Wed Jun 29, 2011
I have seen Fannie Mae offer this incentive for over a year, they keep on saying it's "going away" but they bring it back, Fannie Mae will even pay closing costs for buyers with non-HomePath financing loan programs. Like Phil mentioned, I have seen Fannie Mae extend closings as well as the "deadline" for their closing cost assistance, so my gut says you'll be OK, but definitely ask your agent.
0 votes Thank Flag Link Wed Jun 29, 2011
As you have already heard, you are good to go. I am just wondering why you did not ask your agent?
0 votes Thank Flag Link Wed Jun 29, 2011
To Rashed...that is not an "extension" of the April 11 to June 30 program. It is a new program for offers written on or after June 14. The on or after April 11 program warns that offers made after May 15th may not close in time to capture the incentive. So If the offer was made between May 15 and June 14, it doesn't at face value appear to be eligible.

However, it likely depends on how the offer was written. If the seller paying the buyer's closing costs was part of the offer, which it can be in ANY offer regardless of this "incentive" campaign, the deadlines may not apply at all.
0 votes Thank Flag Link Wed Jun 29, 2011
Good Morning Hancy

Here is information directly from Fannie Mae's HomePath website. The deadline has been extended so you should be just fine. Congratulation on your new home!

HomePath® Buyer Incentive: June 14 – October 31
Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through October 31, 2011.
0 votes Thank Flag Link Wed Jun 29, 2011
best to address this ASAP with the real estate agents and seller( fnma ) ...get this addressed in the form of an addendum to the purchase contract......make sure that your lender is aware of any changes that might be happening
0 votes Thank Flag Link Wed Jun 29, 2011
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