Renegotiating with Fannie Mae?

[VaNurse]

Does anyone here have any experience renegotiating a contract on a Fannie Mae owned home? I have a contract on a property and have just received a call from the inspector advising me that there are three leaks in the roof and there is a bowed ceiling in one of the bedrooms. BTW, this is a 4 year-old home! Obviously, I don't want to invest the full contract price on this, knowing that I'll have to replace the roof and a ceiling.

The contract states the property transfers in "as is" condition which I understand but I am concerned about continuing damage before settlement as well as the additional expense I'll be facing. Any advice is appreciated!

 

[marine]

"As is" is "as is" - you probably are not going to get them to spring for any big repairs on it. You do have the ability to ask them to reduce the price. Hopefully in your offer you had a contingent on inspection clause in there.

Have your realtor go to them with the issues and knock some $$$ off the selling price. Otherwise walk away! Not worth purchasing damaged goods.

 

[VaNurse]

I am aware that they can lower the price or just tell me to go pound sand. The contract is contingent on a satisfactory inspection so, I'm aware I can kick out. Any inspection on this home is going to reflect the same thing and the longer it goes unrepaired, the more deterioration will follow. I would think they'd reduce the price, escrow the funds for repair or just fix the damned thing.

I'm sure that in this market of foreclosures that they don't really want a cash buyer to walk away simply over the price of a roof! I'm just trying to establish what Fannie Mae's practices generally are when there is a defect such as this.

 

[Franky Wright]

VA,
I have done roughly 3 dozen of these :com:

Best advice is let it go=as in dont do anything, let it expire. Then write another offer with your LLC, INC., Partnership, (so as your 1st offer name is unkown to the FNMA underwriter handling it) whatever the fck CO you want, and offer the difference of what it will cost you to fix the roof.

If there is a reason you want this home specifically, and I don't care what it is, you need to seperate your emotions from this deal.

Do that, then let me know what happens, or get my email from Jaek and I will walk you through it via email or phone

Franky

 

[VaNurse]

I don't think we can just "let it expire". I'm assuming that you recommend that we state that we wish to cancel the contract based on the home inspection and "that's that". Then, once the earnest money is returned, shoot in another contract?

Actually we're not so attached to the house that we'd be stupid. In fact, in another search last night, we found a new "stick built" on a little smaller lot that's listed for the same price as this was. It would be nice to be the first owners of a home and not have to do anything at all to it. If there are any structural defects on it, I would think the building inspectors would catch it before the occupancy permit was issued.

Thanks for your advice and I will get your e-mail from Jaek if we have any hassle or need further advice.