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HomePath: Issues with Purchase Addendum, contacts & title

Hello!   Our financing is complete and ready, per our contract with HomePath - REO.  Our closing date is April 18th. 
Here are our concerns: 
1.  Our offer was accepted at $278,000 with closing cost credits of $8250.  It is listed all over our paperwork, on many pages & various versions of our contract.  However, the seller (listed as a man from FMNA) failed to initial the closing credit section on the Real Estate Purchase Addendum.  He signed every page, including the page with the missing initials. 
2.  Our lawyer, agent & loan company have tried contacting the listing office with numerous messages left.  We are concerned because the listing office, failed to de-winterize the home for the inspection.   Our Realtor was told numerous times that the property would be ready.  Not only was it not de-winterized, but WE PAID out of pocket for the water bill that had been overdue since before December.  We had to wait until the city came to the property.  Luckily, we were able to have an inspection with utilities on...but, after our persistence & out of pocket expense.   The listing office was VERY APOLOGETIC.   However, after that experience, we are quite nervous as to what else has been left unpaid (utilities).  
3.  The current title of the home is listed with PHH Mortgage.  This is an issue as the contract shows FNMA being the seller of the home.
Please help!!!  Any advice is appreciated :).
  • April 09 2014 - US
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Answers (3)

It's tuff! If the listing agent's "bread and butter" is his/her REO account/profile with Fannie Mae, He/she does not want to be too strong in the communications to hurt the relationship and get cut off from future assignments/listings! Fannie Mae is trying to be more transparent with offers submitted online etc. Usually, the asset managers (Acting as seller) are responsive and want to help get the deal closed. I believe their bonus system is based on closing before the end of the month! I have heard of a few unique cases where they disappear and let a deal crash and burn, but it's rare!  Don't worry about PHH. If Fannie Mae insured it, Fannie Mae is the only seller of record. The question for the loan officer is, Can we keep moving forward and get the loan documents in title, while we wait for Fannie Mae or is this a "pre-document condition" It sounds like you are already out-of-pocket for inspections and appraisal, so why not keep moving forward, in good faith that Fannie Mae will sign off on the credit, etc. The loan officer and escrow officer can answer your questions about potential delays here. Is your financing actually a HomePath loan? HomePath is Fannie Mae's own financing, of course. The good news, I've never had a buyer client lose a deal with a Fannie Mae transaction unless it was the buyer's own fault.

  • April 09 2014
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Thanks, Steve Hensen!  We are still waiting to hear what is going on.  It is beyond frustrating.  Our agent told us he was going to call and also make a visit to the listing agent office.  We will see what comes of it.  With the title, we were told that this happens quite often:  It says PHH Mortgage and Fannie Mae is selling the home.  Our loan officer told us it is common, but we have no idea how this could also potentially delay the closing?  Any ideas?
  • April 09 2014
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I'm surprised the listing agent can not get the asset manager to initial for the credit and the utilities/winterizing issues don't sound right either. The escrow officer will send a final HUD-1 (estimated net sheet) to Fannie for approval and the credit should be on there, but your lender, probably is in a holding pattern waiting for the initialed paragraph! I'm getting a headache! It's good the listing office is very apologetic, but are they explaining their efforts in getting the initials for the credit? Is Fannie Mae's asset manager ignoring them? Are they trying to escalate the file? Is Fannie not agreeing to the credit? Etc.? I don't know all the facts here, but welcome to REO!
  • April 09 2014
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