We recently represented a buyer who wanted a purchase a Fannie Mae owned property located in San Jose California for rehab and resale. After waiting 2 week, Fannie Mae finally accepted our CASH offer; but shocked us with horrendous deed restrictions and limitations that can only be described at hostile and unfriendly!
Here are gruesome details that might shed some light on how Fannie Mae’s hostile business practices are prolonging this recession and preventing any possible recovery in the Housing sector:
Fannie Mae Deed Restriction 1: 120% cap on resale price of this home.
Fannie Mae Deed Restriction 2: No Resale allowed prior to 90 days.
Fannie Mae Restriction 3: All inspection to be completed in 5 days.
Fannie Mae Restriction 4: Deal had to be ALL cash.
Fannie Mae Restriction 5: Deal had to close by 6/29/2011.
Fannie Mae Restriction 6: Earnest Money Deposit has to be Cash or Cashier check and be non-refundable after contingency removals.
Fannie Mae Restriction 7: Sale price no contingent on any appraisal.
Given these restrictions and our inability to get an exception, our investor cancelled this transaction. This cancellation prevented the employment of at least 5 different trades (Plumbing, Electrical, Painter, Roofer, Designers) along with a minimum of $50,000 which would have helped our local economy.
We could understand Fannie Mae’s hostile business practice if this was a Short Sale where your Asset Manager was concerned about getting the highest dollar possible for this asset. But this is an REO. We could understand Fannie Mae’s hostile attitude towards investors if your Asset Manager did not have enough time to market this property. But this home has been on the market for 167 days! In short, we have started wondering if Fannie Mae’s charter is to help this housing recovery or prolong this crisis!
We have started wondering if Fannie Mae’s charter is to help the Silicon Valley’s economy or damage it! But before you decide your sell your home find out your home value. In most cases your home is worth more than what you.
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