We put in a offer for a forclosed fannie mae propoerty. Fannie Mae came back and countered our offer we accepted. We put up ernest money and already had been preapproved by our bank. we paid for the inspection as well. We heard back this Monday that the property hasnt been foreclosed on proporally and so the closing date would be another 3 weeks away instead of the this week (yes we were suppose to close this week). Then today we heard that the property would be put back on the market after they get the forclosure done right. Then we would have to put in another offer. Plus we would have to wait 2 days after it gets on the market before we could put in our bid again! We had this home already under contract and was about to close. ALL this information is coming from the listing agent. ANyway we have contacted fannie mae and are waiting a recponse. I believe we have heard of this happening before......
Update:I hope this makes better sense to why I think he is being dishonest. He will make more money buy putting the home back on market at higher price. My agent is looking into this as well asking for the email fannie mae supposedly sent plus she has contacted fnnie mae.. I also did too and am waiting :(
Update 3:Thanks for the answers, there should be better laws protecting the buyer. We are out of money and time. Not to mention the stress of this all, simply due to a mistake on there part. They should have did the forclusure and went with our accepted and contracted offer. We were told by our lender we were closeing this week we packed and now are unpacking.. This has been a nightmare :(
Answers & Comments
Verified answer
First of all where are you hearing all this so called information from?
Go back and re-read your contract. Then read your escrow instructions that you received from the escrow company. The escrow instructions are taken from the purchase contract that all parties have signed. The attorney for the bank should be contacted as that is the person who handled the foreclosure for the bank. If the foreclosure wasn't done properly, then the earnest money deposit would be returned to you before the property goes back on the market.
That said, the title company would not have clear title to the property so until the cloud is lifted this transaction can not go any further.
Since you had to pay for a home inspection upfront, you may not be able to get that money back.
The truth is, you would still not necessarily close this week because it does take longer when working with banks and the government on clearing any issue that has come up.
What you need to do now is send a certified letter to both the listing agent and his broker stating that you want them to follow up with Fannie Mae on the discrepancies. Also send a letter to the Board of Realtors who will investigate the whole situation. The outcome would be a letter going into the broker file and the listing agent file. It could also include a suspension of both the agent and his broker especially if they had knowledge when going into the transaction.
Fannie Mae will not respond to you or your buying agent as they work with the sellers agent and seller and it becomes a conflict of interest.
You don't understand the process and it doesn't help when both agents are not doing their fiduciary duty to you or the seller.
I don't understand how the Real Estate Agent is responsible. It sounds as if Fannie Mae is responsible. The agent is just a person working for you, the agent is not the person making decisions. The agent has nothing to gain by the sale being delayed or stopped, he doesn't get paid until the sales closes.
Blaming the agent is like blaming the nieghborhood mechanic for a problem in your car, instead of blaming the car company that made it.
So, where is your buyer's agent all this time? Sounds like you don't have one, which is a big mistake. The seller of a property pays for the buyer's agent, even for a foreclosure. Your agent then negotiates for you, contacts all interested parties in your behalf, and knows when someone is jacking you around (they know the laws). You have everything to gain and nothing to lose by securing your own agent. And, never use the listing agent as the buyer's agent. This sets up a conflict of interest that favors the seller.
It sounds like the bank didn't own the house at the time that you put your offer in. So the bank COULDN'T SELL it to you. So the original contract is null and void.
You haven given any proof that the agent was dishonest. It sounds like the bank is at fault. The bank asked the agent to sell a house that the bank had no legal right to sell yet.
This is just ONE of many many problems you have with short sales and bank owned properties.
Sorry, but it really has been that great of a deal - just to save $2,000. Right? You should have actually listened to your agent (as you had posted before).
I think a real estate attorney is a good idea, but the agent isn't necessarily to blame. Fannie and Freddie are both overwhelmed with foreclosures (so are we) and it's very possible that some overworked and underpaid pencil pusher screwed up.
this just happened to my son in January.It is not the realtors fault,its whoever handled the foreclosure on the home in the first place.i would not worry too much,realtors all work together,if in the next couple of weeks while you are waiting, someone wants to look at the property, the listing agent will most likely steer anyone away from your property.I guess my point is don't worry you will get it.GL
I would take your signed contract to a real estate attorney and ask for his assistance. If you really want this home, then this will be money well spent. It sounds like you did everything right, and I don't believe they have the right to relist it if you have already agreed to purchase it.
Yes, I do believe the realtor is being dishonest.
what does all this have to do with real estate agent dishonesty?
the RE agent has no control if Fannie Mae does something