Home Buying in Arizona>Question Details

Concerned, Home Buyer in Denver County, CO

Fannie Mae property, They missed 2 closing dates no new one offered.

Asked by Concerned, Denver County, CO Sat Mar 5, 2011

Fannie Mae property was to close on the 2/20/2011 it was extended until 2/25/2011. Didn’t happen, no new closing date , problem with the title I guess. Is the contract still valid? Or can I now walk away? We like the house but are not getting any answers. Would like o get something purchased ASAP. Are all Fannie Mae deals like this?

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I would start with some questions.

Clearly, if you needed to turn to this forum, you are not getting good information from your Buyer's agent.
If you used the Seller's agent you can still demand answers. If you are not getting answers, you should turn to the agent's broker and to the escrow company for a response. Call them.

The escrow company, who is to be a neutral party, can guide you as to whether they can return your earnest money. That will give you a clue as to whether you can terminate the contact. But, don't give up just yet. Ask the escrow company what the delay is. It may be that they can't yet get you clear title and won't proceed until a cloud on the title (defect or error in who the current owner is-ie who has the right to sell the property) is fixed. They can also give you an estimate of the time frame which will help you make a decision.

In Arizona, if you used the standard real estate contract, you must give the seller 3 days notice to cure the contract breach (ie. not providing clear title on time to close). Your Buyer's agent or his Broker (boss) should send this to the seller when you tell them to do so. Send a copy to title/escrow as well.

Last resort, seek legal advice from a Real Estate lawyer.

And no: all Fannie Mae deals are not like this, but on any real estate transaction there are always problems that come up that we Buyer's agents get to help solve. I hope you are able to get improved communication with your agent. Good Luck!

Loren Hoboy
1 vote Thank Flag Link Sat Mar 5, 2011
I have run into that also. Sometimes it is just about getting the deed corrected.
Talk to your Buyer's agent. Usually you have a date to close on your contract, your contract will state/dictate how and if you can cancel the contract.
Web Reference: http://bradbergamini.com
0 votes Thank Flag Link Sat Mar 5, 2011
0 votes Thank Flag Link Sat Mar 5, 2011
Without knowing a few more facts it is hard to say what the delay is. You would have to go over your Fannie Mae Addendum with your agent to determine what you should do. As for the validity of your contract, again it depends on what is in that Fannie Mae Addendum and whether there has been extension paperwork filed. You should get with your Agent ASAP and have them investigate this to determine exactly what is going on. If you like the house you may want to hang on a while longer to see if they can get whatever the issues are straightened out.
0 votes Thank Flag Link Sat Mar 5, 2011
Is your agent giving you some guidance as to what the title issue is and when they anticipate that it will be fixed?

Title issues DO come up with foreclosed homes - in fact I had a title issue with a house I have in process. But often the issues can be resolved in a couple of weeks.

And what I've discovered is they won't set a firm closing date until title is clear. But that doesn't mean all work has stopped on escrow.
0 votes Thank Flag Link Sat Mar 5, 2011
You may be able to walk by following the fannie mae addendum.
Talk to your title companyand your realtor.
0 votes Thank Flag Link Sat Mar 5, 2011
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