This will depend on the language in your contract. It is vital to have an attorney review your contract as soon as possible to identify any provisions that might allow you to back out of the contract. Many times, these kinds of provisions are time sensitive and require the buyer to act before deadlines that are specified in the contract.
Nina T. Marano, Esq.
Bogin, Munns & Munns, P.A.
NO LEGAL ADVICE: This response is not intended as legal advice nor should you consider it as such. It is intended only as general information with respect to a question that you have raised. You should not act upon this information without retaining professional legal counsel. Please keep in mind that merely contacting Bogin, Munns & Munns, P.A. cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement. Any information or documents sent prior to your executing an engagement letter and submission of a retainer deposit cannot be treated as protected by an attorney client-privilege and may be determined by a court to not constitute protected information of any nature.
You need to talk to a real estate attorney about your options. You're saying that condo is not Fannie Mae. Only a loan may not be a Fannie or Freddie backed loan. The condo may not comply with the requirements for Fannie or Freddie loan because it does not carry the reserves that are required by Freddie or Fannie backed loans, for example. Talk to a real estate attorney, or post your question in a real estate section of Avvo.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is or is intended to be created by my answer. You should contact an attorney in your area to discuss your case.
The answer to your question depends on the wording of the contract you signed. However, if the disapproval by Fannie Mae relates to a defect in the condominium documents rather than a physical defect in the property, you may be able to get your deposit back because the title is unmarketable. You should immediately consult an experienced real estate lawyer in your area.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
I agree with my colleagues. I suggest that you have a real estate attorney review your contract to see what your options are.
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state.