Freddie Mac, Fanny Mae, HUD, etc failures (contract, closing, listings)

[tomocox]

I currently represent a buyer of a Freddie Mac foreclosure. The seller placed the property on the market prior to completion of title transfer. Now, the closing cannot occur, even though Freddie Mac negoiated at their suggestion that closing occur on or before a date certain with a "time of essence" with regards to the closing date.

Anyone else have a breech of contract with one of the governmentally "attached" agencies?

[Zyngawf]

Are you sure it's a breach? In that great big long as is addendum I am sure I have seen it written where they cover themselves for this, explaining that they are not taking any liability for an title issues and I think I have even seen language something like "seller cannot guarantee title at the time of this contract." Read it again and you will probably find something like this. It is a risk with REO's. I have had it happen once. buyer chose to cancel instead of waiting for it to clear up.

[yxnstat]

The Homesteps (Freddie Mac) Addendum to Contract of Sale states the following under heading 2. TITLE.

>The extent of Seller's obligation with respect to title shall be to provide insurable title to Purchaser.

Here's a link to the document: http://media.reliancenetwork.com/dyn...0714692243.pdf

[Zyngawf]

Originally Posted by yxnstat

The Homesteps (Freddie Mac) Addendum to Contract of Sale states the following under heading 2. TITLE.

>The extent of Seller's obligation with respect to title shall be to provide insurable title to Purchaser.

Here's a link to the document: http://media.reliancenetwork.com/dyn...0714692243.pdf

The link doesn't open for me.

[tomocox]

Originally Posted by yxnstat

The Homesteps (Freddie Mac) Addendum to Contract of Sale states the following under heading 2. TITLE.

>The extent of Seller's obligation with respect to title shall be to provide insurable title to Purchaser.

Here's a link to the document: http://media.reliancenetwork.com/dyn...0714692243.pdf

Exactly our point... They did not have the right to offer the property for sale in the first place without the insurable title in hand.

[Zyngawf]

Originally Posted by yxnstat

The Homesteps (Freddie Mac) Addendum to Contract of Sale states the following under heading 2. TITLE.

>The extent of Seller's obligation with respect to title shall be to provide insurable title to Purchaser.

Here's a link to the document: http://media.reliancenetwork.com/dyn...0714692243.pdf

The link worked that time. The very first paragraph covers them for things like this. It explains that they might not yet have the title issues cleared up and even goes on to say that they have the right to inform the buyer and cancel at any time if they find it cannot be obtained. To answer the OP question it happens often enough in transactions with REO's, but it isn't a breach.

[NinaN]

I haven't been involved in a purchase with that issues, but I've seen plenty of REO listings that say something to the effect that it's back on the market now that the title issues have now been resolved.