REO - PMI holding up the deal? - Posted by Gunn (Ga)

Posted by Nate(DC) on July 03, 2003 at 16:31:08:

I would continue to wait and be ready to close whenever they call.


REO - PMI holding up the deal? - Posted by Gunn (Ga)

Posted by Gunn (Ga) on July 03, 2003 at 16:18:02:

I have a signed contract on a Fannie Mae REO, and THEY requested a two week closing (that’s fine, I’m paying cash). The problem is that it’s been two weeks and they are not ready to close.

Here is their explanation: The realtor says that the insurance company has to sign off on the sales price, since it is lower that what was owned on the house? She says this is just a formality, but it sometimes takes several weeks.

The contract price is only 2k below the listing price. Surely Fannie Mae would not list a property for less than they can sell it for?

The property is definelty under priced, we had 10 or 12 people trying to buy it from us while we had our heating and air contractor and inspector over there.
Also the realtor said she had over 100 calls on the property in the two weeks it has been listed.

The realtor brought the property to me Before she had it in the mls (even before she had a listing price) and we had it under contract before she put her sign in the ground.

Does this delay sound reasonable? I’m worried that because there is 35 to 45k profit in this property with only light rehab that there might be some funny business going on.

Since the seller is Fannie Mae, I guess I have no recourse, except to continue to communicate through the agent.

Any ideas on what I can do to take control of this deal?

Thanks in advance.


Re: REO - PMI holding up the deal? - Posted by Tim

Posted by Tim on July 04, 2003 at 06:45:37:

I have bought houses from Hud, VA & FHA. Just keep telling yourself it’s the government, & they are going to do the deal on their terms & on their own time schedule, but they will eventually close.