Posted on: 05th Sep, 2010 01:59 pm
I have an accepted contract to purchase a GMAC/Freddy Mac home in foreclosure. Closing was all set for last week. Late afternoon on day before closing, I was notified that closing would be delayed and explanation was forthcoming. This was the explanation:
"Freddie Mac was recently informed of the existence of certain defects that occurred during the foreclosure of the subject property by their servicer, GMAC, that raises questions about the insurability of the title of the subject property. The defect relates to the affidavit used in support of the foreclosure judgment. Until GMAC has taken the necessary legal action to remedy the defect, Freddie Mac is unable to proceed with the marketing, sale, offer negotiation, and closing of the subject property. Should you wish to cancel your contract of sale on this property, we will promptly direct the refund or return of your earnest money deposit. However, should you wish to remain under contract and await resolution of this issue we will retain your earnest money and notify you when we can proceed with closing."
Can anyone enlighten me on this? In layman's terms?? How long might this take, etc. Can get no answers from Realtor or Seller. Thank you.
"Freddie Mac was recently informed of the existence of certain defects that occurred during the foreclosure of the subject property by their servicer, GMAC, that raises questions about the insurability of the title of the subject property. The defect relates to the affidavit used in support of the foreclosure judgment. Until GMAC has taken the necessary legal action to remedy the defect, Freddie Mac is unable to proceed with the marketing, sale, offer negotiation, and closing of the subject property. Should you wish to cancel your contract of sale on this property, we will promptly direct the refund or return of your earnest money deposit. However, should you wish to remain under contract and await resolution of this issue we will retain your earnest money and notify you when we can proceed with closing."
Can anyone enlighten me on this? In layman's terms?? How long might this take, etc. Can get no answers from Realtor or Seller. Thank you.
Welcome dragonfly,
It will take some time for GMAC in order to resolve the issues related to the title of the property. It would be difficult for me to let you know the exact time period that will be taken by the lender to resolve the issue. If you want to buy a property soon and do not wish to wait, then you should contact Freddie Mac and cancel the deal and get back your earnest money. However, if you can wait for some time, then you can remain under the contract.
It will take some time for GMAC in order to resolve the issues related to the title of the property. It would be difficult for me to let you know the exact time period that will be taken by the lender to resolve the issue. If you want to buy a property soon and do not wish to wait, then you should contact Freddie Mac and cancel the deal and get back your earnest money. However, if you can wait for some time, then you can remain under the contract.