I have a Fannie Mae owned property that I intended to purchase - all cash offer with 10% EMD. Fannie Mae wanted a fast closing, rushed everyone to close and the day before closing their title agent said title not clear, there is a recording error with the legal description and may have to go into reforclosure.
Since then I have not heard anything besides "3-6 months or more".
I have already spent money on an inspection and survey, also they are holding 20K of my money as deposit.
By the time they have a clear title, I might have to do another inspection with so much time past. They asked for a 3 month resale deed restriction, well, that 3 months has been spent on reforclosure.
Can I strike a new deal once they have clear title? Can I get my EMD back while I wait?
The answer to all your questions depends on the language of the agreement of sale. All the REO contracts I am familiar with put all the risk on the buyer, however, you should take the agreement to be reviewed by a real estate attorney and ask himn or her those questions, When was evidence of title due relative to when you got it ?A very good question is why the title agent could not have found these problems in a more appropriate time frame, and even if you do not have recourse against Fannie, you might have recourse against the title agent for being asleep at the wheel.
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 intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
This title issue is governed by the contract. Almost certainly you can terminate and obtain a refund of your deposit but before doing so meet with a real estate attorney. It is unlikely that you will recover any inspection fees you have expended.
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