Buyer to Select Title Company on Fannie Mae REO Sales

March 12, 2010

Buyer to Select Title Company on Fannie Mae REO Sales

Good news for people buying Fannie Mae owned homes. Traditionally, Fannie Mae used nearly the same addendum for REO sales as banks. The addendum stated the buyer must use the seller’s title agents and cost of transfer taxes and stamps would be the buyer’s responsibility.

The bank and Fannie Mae title and escrow policy has been a source of continuation for us, as well as other Arizona real estate agents. In most all real estate transactions the home buyer got to choose his or her title and escrow company. Banks changed the rules by insisting buyers use their title company. In many cases these firms were over burdened with files and did poor work.

Fannie Mae issued a new addendum that allows a buyer to select his or her own title agent. This is a change in FNMA Policy and is welcomed with open arms by the Arizona Real Estate Community.

To find out if the REO property is Fannie Mae, go to:

http://loanlookup.fanniemae.com/loanlookup/.

Section 2, B of the new Addendum is as follows:

2. Time is of the Essence: Settlement Date:

B. The closing shall take place on a date (“Settlement date”_ on or before ______________, 20_____ (“Expiration Date”), unless extended in writing signed by the Seller and the Purchaser or extended by the Seller under the terms of the agreement. The closing shall be held at a place so designated and approved by the Purchaser. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing. The date the closing takes place shall be referred to as the settlement Date for purposes of the Agreement. If the closing does not occur by the Expiration Date, or in any extension, the Agreement is automatically terminated and the Seller may retain any earnest money deposit as liquidated damages.

Thanks for being a passionate reader of Urban Life and we will endeavor to bring you the latest news on real estate and downtown Phoenix.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Posted by Gene Urban - the Urban Team on March 12, 2010 at 01:49 PM | Permalink

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Fannie Mae issued a new addendum that allows a buyer to select his or her own title agent. This is a change in FNMA Policy and is welcomed with open arms by the Arizona Real Estate Community.

To find out if the REO property is Fannie Mae, go to:

http://loanlookup.fanniemae.com/loanlookup/.

Section 2, B of the new Addendum is as follows:

2. Time is of the Essence: Settlement Date:

B. The closing shall take place on a date (“Settlement date”_ on or before ______________, 20_____ (“Expiration Date”), unless extended in writing signed by the Seller and the Purchaser or extended by the Seller under the terms of the agreement. The closing shall be held at a place so designated and approved by the Purchaser. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing. The date the closing takes place shall be referred to as the settlement Date for purposes of the Agreement. If the closing does not occur by the Expiration Date, or in any extension, the Agreement is automatically terminated and the Seller may retain any earnest money deposit as liquidated damages.

Thanks for being a passionate reader of Urban Life and we will endeavor to bring you the latest news on real estate and downtown Phoenix.

Gene Urban
The Urban Team at Realty Executives
602-234-5777