You can ask for a closing cost credit in Par.
Most buyers do not see this term buried in the Addendum. This is at least $2000.00 in most cases, that the buyer would not otherwise have to pay.
The Addendum also says that the buyer has to pay for the state and county transfer tax and for the seller’s share of title insurance. It is strictly an in/out situation and credits or repairs are extremely unlikely. If you can get the place dewinterized yourself and you are lucky enough to do an inspection before the contingency expires (due to the verbal acceptance date), please do not even consider asking for any credits or repairs after the inspection because the answer will be no.
FANNIE MAE FORECLOSURES ILLINOIS PATCH
It took the plumber most of the day to patch the leaks it cost more than $600.00, which the buyer had to pay. On a Palatine property last year, the buyer dewinterized the townhouse and leaks sprang from everywhere. Most REO sellers will dewinterize for a buyer to inspect the property, but not Fannie Mae. Fannie Mae does not turn the utilities on. The gas, water and electricity are turned off. Here is an Arizona case in which the Buyer couldn’t get the earnest money refunded after the inspection turned out poorly, largely due to confusion over the verbal acceptance date.įannie Mae properties are always winterized.
So if you buy a Fannie Mae home, schedule your inspection immediately after the verbal acceptance date or your home inspection contingency may expire and you will be stuck with the house or lose your earnest money. So the inspection period may pass by and expire, without the Buyer knowing this, and the Buyer cannot cancel the contract if the inspection turns out poorly. Many buyers don’t realize this and think that the inspection contingency starts when the signed contract is received back from Fannie Mae. The main problem with the Addendum is that the home inspection contingency period begins on the verbal acceptance date and runs for 7 days from that date, not on the date that the contract is accepted in writing by Fannie Mae. Confusion on the Verbal Acceptance Date and the inspection I have a file now that is ready to close according to the closing date in the Addendum, but we don’t even have the signed contract and Addendum back yet from Fannie Mae.Ģ. Usually, it takes about three weeks from the time the Addendum is signed by the Buyer to get a signed contract and Addendum back signed from Fannie Mae. The buyer then signs and returns the Addendum. Once the contract is verbally accepted, then the listing agent sends the poor, unsuspecting selling agent the Addendum. (Never mind that real estate contracts have to be in writing an can’t be verbal–they’re Fannie Mae, and if they feel like undoing centuries of contract law…you better get used to it) When a buyer makes an offer, the buyer signs a standard real estate contract and sends it to the listing agent. The Fannie Mae Addendum is tricky and close to incomprehensible. Why is the purchase of a Fannie Mae foreclosure different from any other foreclosure buy? Let me count the ways:Īll REO sellers make the buyer sign an Addendum. Unfortunately, Fannie Mae pops up a lot as a seller of REO (real estate owned) foreclosed properties and I always cringe when I get one of these contracts. Delinquencies of Fannie Mae homes are rising, so we will likely see more and more of these.
FANNIE MAE FORECLOSURES ILLINOIS MAC
Fannie Mae and Freddie Mac own more than half of the country’s mortgages. Fannie Mae is perhaps the most difficult seller of foreclosed homes.
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