Profile picture for amandathomas

Representing buyers in the foreclosure market?

As a Buyer's Agent, are you aware that Fannie Mae changed the FNMA addendum in 2009 to allow buyers to choose their own title company? "The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing" (see the current addendum online, in section 2B).

If you are writing an offer, and the 'seller's choice' for Title Company is a concern for your buyer or for your office, don't allow the listing agency to steamroll your options with obsolete or incorrect information.  
  • March 20 2012 - Plano
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Answers (2)

Profile picture for Darcy.Logan
Hi Amanda - thanks for posting this.  It's an interesting topic. 

Have you had any luck being able to select an independent/buyer's choice for title and/or escrow?  Out here in California, a majority of the offers on foreclosures ask for seller paid closing costs, and when the seller agrees to pay closing costs, they refuse to pay for services other than those they have prior agreements with for pricing.  I haven't had a cash foreclosure buyer since before the changed, so I'd love to hear more on experiences from the trenches, especially if you've had success with this.

thanks,
Darcy
  • March 26 2012
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Profile picture for PonJ

In the posting you have said "don't allow the listing agency to steamroll your options with obsolete or incorrect information" as though it is only the listing agent's responsibility to give correct information about the choice of Title company to the buyer, it is also the responsibility of the buyer's agent to give correct information to the buyer. The buyer's agent is supposed to read the documents and explain it to the buyer before asking the buyer to sign the documents.

Let's take my case as an example. Being a buyer, I submitted an offer through you for a HomePath property in Frisco, TX on March 01, 2012. As you were the buyer's agent, it was your responsibility to explain to me about all the terms & conditions in the document. When I asked you about the choice of Title Company, you said that buyer could not select the Title Company (without even reading the document or asking the listing agent). The seller didn't agree to the price that I offered and rejected my offer. In the meanwhile, I read the document and found out that the buyer could select the Title Company for the HomePath properties.  When I met you on March 5th or 6th, 2012 (after the offer got rejected), I told you about the choice of Title Company and asked you to look at the section 2B in the document. You are the one who is supposed to know about the process and explain it to the buyer but in this case it was the buyer (myself) who explained to you about the process. Later on March 7th, 2012, you sent an email to the listing agent enquiring about the Choice of Title company, which was totally unnecessary. In the email, you never mentioned about the section 2B. The listing agent without reading the document (like you) replied buyer could not select the Title Company. Then you replied to the listing agent mentioning about the section 2B and criticizing the listing agent. I have a copy of that email because you marked a BCC to me. First of all, the email that you sent to the listing agent on March 7th, 2012 was absolutely unnecessary. You should have shared the information with the listing agent rather than critizing the listing agent.

  • April 14 2012
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