Fannie Mae HomePath issues - listing agent refusal to modify contract

[criticalthinker]

What is the name of your state (only U.S. law)?

CT

Financing initiated on a property that is Fannie Mae REO. P&S originally stated conventional financing based on a pre-approval from a lender, but it was later determined that conventional financing would not be possible. Another lender stepped up with a solution. They determined that the property was Fannie Mae HomePath eligible. However, per Fannie Mae's own guidelines, the P&S would have to reflect HomePath financing. The listing agent refuses to make the following two changes to the contract:

The P&S would need to reflect "other", "Fannie Mae Special REO." And the addendum would need to reflect �Fannie Mae HomePath Mortgage Financing."

So the listing agent for a Fannie Mae owned property that is eligible under Fannie Mae's own HomePath program, is refusing to modify the contract to comply with FnMa HomePath guidelines. If the changes aren't made, HomePath financing will not be possible despite the property's eligibility.

I'm concerned that the listing agent isn't running any of this by Fannie Mae and is simply refusing to make the modifications for reasons of his own. I cannot imagine why Fannie Mae would refuse - it's selling the property and backing the loan. Unfortunately, there's no Fannie Mae customer service (for consumers) that handles this sort of question - I tried already and hit a wall.

At this point, I'm not sure if there is a solution. Any guidance would be appreciated.

 

[Zigner]

What is the name of your state (only U.S. law)?

CT

Financing initiated on a property that is Fannie Mae REO. P&S originally stated conventional financing based on a pre-approval from a lender, but it was later determined that conventional financing would not be possible. Another lender stepped up with a solution. They determined that the property was Fannie Mae HomePath eligible. However, per Fannie Mae's own guidelines, the P&S would have to reflect HomePath financing. The listing agent refuses to make the following two changes to the contract:

The P&S would need to reflect "other", "Fannie Mae Special REO." And the addendum would need to reflect �Fannie Mae HomePath Mortgage Financing."

So the listing agent for a Fannie Mae owned property that is eligible under Fannie Mae's own HomePath program, is refusing to modify the contract to comply with FnMa HomePath guidelines. If the changes aren't made, HomePath financing will not be possible despite the property's eligibility.

I'm concerned that the listing agent isn't running any of this by Fannie Mae and is simply refusing to make the modifications for reasons of his own. I cannot imagine why Fannie Mae would refuse - it's selling the property and backing the loan. Unfortunately, there's no Fannie Mae customer service (for consumers) that handles this sort of question - I tried already and hit a wall.

At this point, I'm not sure if there is a solution. Any guidance would be appreciated.

You may want to consider a different property.

 

[justalayman]

so, ask the agent what else would have to be amended to allow this amendment allowing the other financing. It makes no sense the seller would not want some contract on the property but I suspect the financing you propose causes some other issues that may affect their bottom line. If the contract would take that into consideration, it makes no sense to not allow the amendments.

 

[Mass_Shyster]

Financing initiated on a property that is Fannie Mae REO. P&S originally stated conventional financing based on a pre-approval from a lender, but it was later determined that conventional financing would not be possible.

Sounds like you may have to exercise the mortgage contingency to terminate the contract and write up a new offer showing the alternate financing.

 

[justalayman]

Sounds like you may have to exercise the mortgage contingency to terminate the contract and write up a new offer showing the alternate financing.

If they do this there is no guarantee of the offer being accepted. It would be better to try to amend the current contract so the agreement to purchase remains intact unless there is absolutely no way to make the existing contract work

 

[Mass_Shyster]

If they do this there is no guarantee of the offer being accepted. It would be better to try to amend the current contract so the agreement to purchase remains intact unless there is absolutely no way to make the existing contract work

Agreed, but I don't think OP should let the negotiations go beyond the mortgage contingency date.