Posted on: 02nd Mar, 2011 06:26 pm
I have a situation with buying Fannie Mae property.
I won a highest bit on the Fannie Mae house from participation the Hudson&Marshall live auction and expected to close in 30 days. I have all money ready only to find out one day prior to the closing that the closing attorney charged me closing cost of around $861. Per the binding contract, Marshall&Hudson submitted to Fannie Mae and was acceptd, indicated that the seller, Fannie Mae, will pay the following:
(abridged from the purchase contract) "SELLER'SEXPENSES: Seller shall be responsible and shall pay for any and all Seller attorney fees, the premium for the owner's title insurance policy including any title search and examination fees, provided the Policy is purchased through, and the settlement/Closing conducted by Seller's designated attorney or agent, Seller's share of Prorations and any documentary transfer tax that may be imposed by the County and/or City in which the Property is located, tax certificates, preparation of the conveyance deed, Seller's escrow fees and overnight and express fees. " If the deal cannot be closed by the dated in the contract becasue of this disagreement, can I get the earnest money back. Can I sue Fannie Mae, Fannie Mae's Attorney, and/or Hudson&Marshall of being breached the contract and caused me to pursue my expected gain from buying the property?
Thansk
The closing Att
I won a highest bit on the Fannie Mae house from participation the Hudson&Marshall live auction and expected to close in 30 days. I have all money ready only to find out one day prior to the closing that the closing attorney charged me closing cost of around $861. Per the binding contract, Marshall&Hudson submitted to Fannie Mae and was acceptd, indicated that the seller, Fannie Mae, will pay the following:
(abridged from the purchase contract) "SELLER'SEXPENSES: Seller shall be responsible and shall pay for any and all Seller attorney fees, the premium for the owner's title insurance policy including any title search and examination fees, provided the Policy is purchased through, and the settlement/Closing conducted by Seller's designated attorney or agent, Seller's share of Prorations and any documentary transfer tax that may be imposed by the County and/or City in which the Property is located, tax certificates, preparation of the conveyance deed, Seller's escrow fees and overnight and express fees. " If the deal cannot be closed by the dated in the contract becasue of this disagreement, can I get the earnest money back. Can I sue Fannie Mae, Fannie Mae's Attorney, and/or Hudson&Marshall of being breached the contract and caused me to pursue my expected gain from buying the property?
Thansk
The closing Att
My first question would be to find out what the $861 is for. I'd want them to explain why it's valid. If there is more of dispute and they won't remove the line-item then technically, escrow will require your signature to have the deposit released back to you or the seller, whomever feels that they deserve it. Escrow is NOT allowed to just take your deposit and release it to the seller. If they do, you can sue them and Fannie Mae. If they don't want to release it to you and it's just sitting in escrow, you then would have to go into arbitration where you would win. Good luck.
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Closing Costs:
1101. Settlement or closing fee to Sellers Attorney $450
1103. Title examination to Sellers Attorney $200
1104. Title insurance binder to Sellers Attorney $35
1112 Incoming/Outgoing Wire Fee $15.00
1113 Post Closing Compliance Fee $25.00
1202 Recording Fee $14.00
1205 POA cross reference fee $2.00
1303 Rekey Invoice $120.00
1101. Settlement or closing fee to Sellers Attorney $450
1103. Title examination to Sellers Attorney $200
1104. Title insurance binder to Sellers Attorney $35
1112 Incoming/Outgoing Wire Fee $15.00
1113 Post Closing Compliance Fee $25.00
1202 Recording Fee $14.00
1205 POA cross reference fee $2.00
1303 Rekey Invoice $120.00
Did they explain why they thought it was valid to break the contract? I just wouldn't close until it is removed from the HUD. Escrow cannot take your deposit and give it to the seller. It'll force the seller to open up arbitration (or you can set up arbitration). If escrow does give the deposit to the seller, you can sue escrow. You'll win in arbitration. This could be a major pain but it is what it is. No way to avoid it. Hopefully they'll just realize or they may be trying to pull a fast one. Lastly, if they try to sell the property to another buyer, file a lis pendens so they can't sell it to anyone. Good luck
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Hi Nick,
I went to the closing today (93/4/11-the last day per contract) and try to negotiate the on the closing cost and finally the attorney agreed to remove some closing costs but the the Seller (Fannie Mae or agent) did not agree at the end. Please take a look at the email I sent to the closing attorney and Hudson & Marshall persons.
...............................
To Whom It May Concern:
I was at the closing attorney office today (3/4/11) and tried to close on this property. First, after negotiation, the attorney agreed to remove the costs indicated below per the executed contract between Seller and Buyer.
-Title examination $200
-Title insurance binder $35
- Incoming/Outgoing Wire Fee $15
I agreed on the deal and signed on paper work. Then, after left the room for quite a long while, the attorney came back and informed me that the seller did not agree on removing the $200 title examination. So we could not get into closing the property due to the title examination closing fee issue. The attorney informed me that she will have McCurdy & Candler requests the extention day for the closing.
As this is the seller issue and not the buyer so, as a buyer, I refuse to pay any extra fee and/or premium for the extended closing date otherwise I request to have my earnest money back immediately.
Regards,
................................
I went to the closing today (93/4/11-the last day per contract) and try to negotiate the on the closing cost and finally the attorney agreed to remove some closing costs but the the Seller (Fannie Mae or agent) did not agree at the end. Please take a look at the email I sent to the closing attorney and Hudson & Marshall persons.
...............................
To Whom It May Concern:
I was at the closing attorney office today (3/4/11) and tried to close on this property. First, after negotiation, the attorney agreed to remove the costs indicated below per the executed contract between Seller and Buyer.
-Title examination $200
-Title insurance binder $35
- Incoming/Outgoing Wire Fee $15
I agreed on the deal and signed on paper work. Then, after left the room for quite a long while, the attorney came back and informed me that the seller did not agree on removing the $200 title examination. So we could not get into closing the property due to the title examination closing fee issue. The attorney informed me that she will have McCurdy & Candler requests the extention day for the closing.
As this is the seller issue and not the buyer so, as a buyer, I refuse to pay any extra fee and/or premium for the extended closing date otherwise I request to have my earnest money back immediately.
Regards,
................................
I'm very surprised by their unwillingness to honor the contract that they agreed to. If you're sure there is nothing else that would give them some validation to their side, then what you did was right. Use the takeaway. You'll close, but you want them to honor what they agreed on. Unfortunately though, it might not be as easy as just getting the deposit back. They could fight you and it could be a lengthy process. I would do exactly what you're doing though, they need to honor what they agreed on.
Hi Nicks,
Finally, the seller agreed to pay the $200 dollar and the closing attorney decide to lower the fee $100. I bought this property on Tuesday 3/8/11. I believe it still was a good buy to renovate and rent it out.
Thanks for your kind help and support. We need the wonderful people like to help support the consummer.
Again thank you very much and god bless you.
Finally, the seller agreed to pay the $200 dollar and the closing attorney decide to lower the fee $100. I bought this property on Tuesday 3/8/11. I believe it still was a good buy to renovate and rent it out.
Thanks for your kind help and support. We need the wonderful people like to help support the consummer.
Again thank you very much and god bless you.
I'm very glad I was able to help, sincerely. Reviews and testimonials are always appreciated.
http://maps.google.com/maps/place?cid=17080232347571801704
Good luck with your investment
http://maps.google.com/maps/place?cid=17080232347571801704
Good luck with your investment
Fannie Mae cancelled a contract after the closing date on a property I was suppose to buy. The reason was the servicer decided to purchase the property. I sold securities at a loss to have the liquid cash ready t purchase the property. I was only told after the closing date that the sale is cancelled. Can I sue for the loss I had on the sale? can i also sue for the loss of income I projected to have. Thanks
Hi steve c!
Welcome to forums!
You may sue the concerned person as the deal got canceled on the closing date. You can contact an attorney and he will further assist you in filing the lawsuit.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may sue the concerned person as the deal got canceled on the closing date. You can contact an attorney and he will further assist you in filing the lawsuit.
Feel free to ask if you've further queries.
Sussane
Steve, when you say "after the closing date" that tells me that the contract had expired? Maybe I missed something. If they cancelled the contract while you were in contract, you can definitely sue and what I would do RIGHT away is contact an attorney and file a lis pendens against the property. This would make it virtually impossible for any title company to issue title insurance on the property, thus they can't sell it. It would force them to deal with your suit before they can do anything and you'd probably get it back if you're quick. Good luck.