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Old 08-03-2010, 08:21 PM
 
4 posts, read 13,394 times
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I am in the process of purchasing an REO property from Fannie Mae. The listing for the property described it as a 3/2 modular with an additional unit located on the land. Both homes are pictured in the listing. We were supposed to close on the property on July 28; a day before we were notified that there was an issue with the title. Apparently the foreclosure attorney assigned title to FDIC not Fannie Mae. We signed an extension to close. Today we received notification that the only way to clear the title is to remove the older of the two homes from the property and have it destroyed. Can they do this? The property was actively marketed by Fannie Mae's listing agent as being sold as is with 2 homes on the acre + of land.
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Old 08-03-2010, 08:55 PM
 
Location: Salem, OR
13,981 posts, read 32,765,487 times
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Quote:
Originally Posted by ktrem2 View Post
I am in the process of purchasing an REO property from Fannie Mae. The listing for the property described it as a 3/2 modular with an additional unit located on the land. Both homes are pictured in the listing. We were supposed to close on the property on July 28; a day before we were notified that there was an issue with the title. Apparently the foreclosure attorney assigned title to FDIC not Fannie Mae. We signed an extension to close. Today we received notification that the only way to clear the title is to remove the older of the two homes from the property and have it destroyed. Can they do this? The property was actively marketed by Fannie Mae's listing agent as being sold as is with 2 homes on the acre + of land.

Of course they can do it. Whether or not you agree to participate in the transaction is up to you. If this is what they need to do in order to deliver a clear title, then that is what they need to do.

If you don't want the property anymore since it is not in the same condition as of the time of offer as closing talk with your agent about what clauses in your contract deal with that issue.
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Old 08-03-2010, 08:58 PM
 
Location: NJ
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How does destroying a house clear a title?
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Old 08-04-2010, 09:19 AM
 
Location: Salem, OR
13,981 posts, read 32,765,487 times
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Originally Posted by manderly6 View Post
How does destroying a house clear a title?

The second house may not have been put up there legally violating zoning ordinances and creating a cloud on the title.
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Old 08-04-2010, 09:35 AM
 
Location: NJ
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Originally Posted by Silverfall View Post
The second house may not have been put up there legally violating zoning ordinances and creating a cloud on the title.
Ah, makes sense. I was thinking that they weren't exactly sure who owned it. Couldn't get my ahead around someone having the authority to destroy a building, but not sell it.
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Old 08-04-2010, 09:40 AM
 
Location: Salem, OR
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Originally Posted by manderly6 View Post
Ah, makes sense. I was thinking that they weren't exactly sure who owned it. Couldn't get my ahead around someone having the authority to destroy a building, but not sell it.

I doubt it. More likely is that the title for that property is for one improvement and not two.
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Old 08-04-2010, 10:55 AM
 
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Strange as neither Fannie or Freddie will finance any propery with more than one dwelling on it.
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Old 08-04-2010, 11:08 AM
 
Location: Salem, OR
13,981 posts, read 32,765,487 times
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Originally Posted by TimtheGuy View Post
Strange as neither Fannie or Freddie will finance any propery with more than one dwelling on it.

It probably only had one house on it at the time it was financed. It's not like the banks come out and inspect the properties to make sure that people aren't doing illegal things.
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Old 08-04-2010, 04:22 PM
 
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Actually the tax rolls list the main home on the property as the "improvement" and the second home as an "accessory" but both homes are listed on the tax assessors rolls and are legally on the property. Taxes have been paid on both homes since 2003.
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Old 08-04-2010, 04:24 PM
 
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We are not financing the property it is an all cash closing.
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