REOPro - Real Estate Default Professionals

America's Largest Social Network for Default Real Estate Professionals

For those of you who list Fannie Mae property - if a lender calls out a repair required for financing, is Fannie Mae likely to make the repair?  I am sure it is on a case by case basis, but I was just told by the listing broker, that IF Fannie Mae makes a lender required repair, the cost is then tacked onto the purchase price.......have you had this experience?

Seems like a unilateral decision to me, plus the buyer has no control over the cost or quality of the repair they are forced to finance.

Thanks to all who respond.

Views: 419

Reply to This

Replies to This Discussion

Fannie Mae will not allow repairs of any kind for a HECM reverse mortgage REO.  I don't have any other FNMA REO experience to answer your specific question. 

Thanks for replying, CeCe.  I am not sure if this is a Home Equity Conversion Mortgage reverse mortgage REO. 

It will depend on the sales manager. Some of them are more flexible than the others. I have seen a similar case as yours. Do the best thing you do! Negotiate for your client
I agree with Hugo. Some asset managers had asked to reduce seller closing costs contribution or increase purchase price. I had also seen some approved repairs without altering other terms of the contract.

It is a completely case by case basis.  Depends not only on manager but the price negotiated.  Often if buyer pays list price or close, they are willing.   If not, FannieMae requires the buyer to pay a FannieMae approved contractor to do any work prior to closing, btw.  

Linda good day to you Ma'am it has been a while since we talked. This is only my thought but all terms of a contract should be presented to the asset manager for review. One can never tell what they will or will not do. Present all terms in writing and see how it goes. All they can do is say no so what does it hurt to ask. As a listing broker it is not my place to say they will or won't do something. Have a blessed night Linda 

My experience has been it depends on the Fanniemae rep. I have had them reduce the price, add to the price and do nothing. Usually they do compensate in some form. It to depends on how long it's been on the market and what type
Of reductions they have done so yes I think it's more on a case to case basis to answer your question. I have been doing
Fanniemae for years and they never stop surprising me


© 2019   Created by Jesus (Jesse) Gonzalez.   Powered by

Badges  |  Report an Issue  |  Terms of Service