Seller Accepted Offer & LEGALLY could not sell!!

[noreencaren]

I live in NV - Nevada...

We put an offer on a house in DEC04, it was accepted, FHA won't OK loan because Fannie Mae didn't have title until JAN05 & FHA has the "Anti-Flipping" rule that requires seller to hold title for 90 days before FHA will approve loan. Seller requires buyer to have an FHA loan but won't do an extension based on this new info.

Fannie Mae's selling agent at REA was pushing us to close earlier. The seller can't transfer title until April anyway. They accepted an offer that they could not keep themselves anyway, They should have known of this rule, it's been around since 2003 I think. What can my fiance and I do?

[HomeGuru]

Originally Posted by noreencaren

I live in NV - Nevada...

We put an offer on a house in DEC04, it was accepted, FHA won't OK loan because Fannie Mae didn't have title until JAN05 & FHA has the "Anti-Flipping" rule that requires seller to hold title for 90 days before FHA will approve loan. Seller requires buyer to have an FHA loan but won't do an extension based on this new info.

Fannie Mae's selling agent at REA was pushing us to close earlier. The seller can't transfer title until April anyway. They accepted an offer that they could not keep themselves anyway, They should have known of this rule, it's been around since 2003 I think. What can my fiance and I do?

**A: the rule should not apply if FNMA is the selller. Something does not make sense here.

[PghREA]

Originally Posted by HomeGuru

**A: the rule should not apply if FNMA is the selller. Something does not make sense here.

FNMA requires the ower to hold the property for 90 days before reselling.
He has only owned the property since Jan 5 so, he can't sell it until April 5.
(The current owner WAS the buyer prior to January.)

Originally Posted by noreencaren

I live in NV - Nevada...

We put an offer on a house in DEC04, it was accepted, FHA won't OK loan because Fannie Mae didn't have title until JAN05 & FHA has the "Anti-Flipping" rule that requires seller to hold title for 90 days before FHA will approve loan. Seller requires buyer to have an FHA loan but won't do an extension based on this new info.

Fannie Mae's selling agent at REA was pushing us to close earlier. The seller can't transfer title until April anyway. They accepted an offer that they could not keep themselves anyway, They should have known of this rule, it's been around since 2003 I think. What can my fiance and I do?

Can you get another lender?

[HomeGuru]

Originally Posted by PghREA

FNMA requires the ower to hold the property for 90 days before reselling.

**A: yes, agreed.
*******
He has only owned the property since Jan 5 so, he can't sell it until April 5.
(The current owner WAS the buyer prior to January.)

**A: where in the post does it state that? I presumed that the property went into foreclosure and FNMA took it back and sold it.

[noreencaren]

Fannie Mae took ownership of the house in January. They were the buyer in december BUT the title company had like several people handling the file BUT FHA doesn't care about that, they care about the date they officially took title on the house.

Also, Fannie Mae & Realtor signed a agreement before they could possible sell to us. (Dec)

There are gang load of ethics violations going on here and if ERA doesn't have Fannie Mae agree to our extension I am going to turn them in. \

I am about ready to call ERA Realty and threaten the realtor with about five different ethics violations, we can also turn the info into the licensing board here. THEN the person at Fannie Mae who handles this file is going to be hearing a thing or two from her boss.

This all could have been avoided if they weren't so reckless. SO, what do you guys think of that, do you think it is okay to go behind my realtors back and talk to the seller's realtor like this?

-Noreen E. Caren

You talk about ethics violations then you want to know if it's okay to go talk to the seller's real estate agent?!

Anyway, please tell us what ethics violations are.

Facts, please, not conclusions.

[PghREA]

There are gang load of ethics violations going on here and if ERA doesn't have Fannie Mae agree to our extension I am going to turn them in. \

I am about ready to call ERA Realty and threaten the realtor with about five different ethics violations, we can also turn the info into the licensing board here. THEN the person at Fannie Mae who handles this file is going to be hearing a thing or two from her boss.

This all could have been avoided if they weren't so reckless. SO, what do you guys think of that, do you think it is okay to go behind my realtors back and talk to the seller's realtor like this?

-Noreen E. Caren[/quote]

The Seller's Realtor or the Buyer's Realtor can not make Fannie Mae agree to anything. Rules are rules. However, I do think a nicely worded letter written in an agreeable tone, explaining the situation would be to your advantage.
I sold a foreclosure this summer to a Buyer who was using an FHA loan. We had the same senerio - the loan was suppose to close before the 90 days was up. I wrote a letter explaining the problem and an extension was granted. We closed on the 95th day.

I do not see an ethics violation just a frustrated Buyer.

[noreencaren]

First Off, I have not talked to the seller's realtor directly. That is why i was ASKING. Plus, I am a buyer, not a realtor. I don't have a code of ethics I HAVE TO abide. She is a realtor, she is supposed to abide by the Standards of Practice.

So here are the ethics violations...
Article 2:
SoP 2-4 "Realtors shall not be parties to the naming of false consideration in any document" could not follow through if they did not hold deed, they required that the buyer have FHA loan

Article 10 /
Sop 11-1 When Realtors prepare opinions of real property valiue or price, other than in pursuit of a listing or to assist a potential purchase in formulating a purchase offer, such opinions shall include the following.:... 4. Limiting Conditions"
Limiting Conditions: They DID NOT hold deed until Jan & the signed our offer in december!

Article 12 /
SoP 12-3:
REALTORS® must exercise care and candor in any such
advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the REALTOR®’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.
they are supposed to know the rules about FHA if they are saying the seller requires an FHA loan

So anyway, that is what I want to nail this seller's broker on.

yes, I am a frustrated buyer... a very frustrated buyer.

Anyway, I think a letter would be a good idea right now. Thanx for your help people but if the seller's realtor doesn't rectify their recklessness then they will have to deal with the consequences of their behavior.