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Fannie Mae Now Owns The House We Rent

If you recall, last month I talked about the situation my husband and I are going through in that the house we rent (that we really want to buy) was going to auction after foreclosure. We had no idea what would happen to us and we are still being guinea pigs in order to learn by experience what happens in these sorts of situations.

New developments! I went to the auction and nobody bid on the house so it went back to the bank, or in this case, FHA. I spoke with the representative afterwards and asked him what will happen to us. He didn’t have any solid answers but said to expect to be contacted by Fannie Mae.

So, I went home and emailed the property management company (who we pay rent to) and requested our deposit and last month’s rent back since the property is no longer in their control. She informed me that the owner’s attorney is “objecting to the sale,” which essentially drags things out an additional 60 to 90 days. (Which of course translates to the law office getting two or three more rent payments out of us.) It would be a delay tactic based on scheduling another hearing in front of a judge where the objection would simply be dismissed.

Soon thereafter there was a notice taped on our front door. It informed us that Fannie Mae now owns our home and we have three options. Option 1: continue to rent the property until the lease ends. Option 2: relocate with financial assistance from Fannie Mae. Option 3: purchase the property. I was thrilled to be given the contact information of the real estate agent handling the property. When I called him I said, “I’m so excited to talk to a human! We’re very interested in buying this property!” He answered all my questions and put my mind at ease that we would most certainly have an opportunity to put in an offer on the property.

I also met with another real estate agent who would be handling the property management aspect of this transition. We signed a new month to month lease (at about about $150 more) and she took an inventory of repairs the house needs. This is good news since we haven’t used the master shower for over a year because of a leaking drain pan causing mold to grow in the adjoining walk-in closet. (Our prior property management company would not fix that.)

So, we are not GUARANTEED to get this house, but we will be able to put our offer in just like anyone else once it’s put on the market. The only negative thing is that we have to comply and allow potential buyers to view the house. Grrrrr…. Not looking forward to having strangers in the house and making sure our animals are safe. I sympathize with tenants and sellers on a whole new level now!

The next steps are for the listing agent to come by and view the property to give his price opinion and also have an appraiser valuate the property.
Stay tuned for next month’s update! As always, if you have any real estate related questions or if I may be of service in any way, please call me at 407-236-6559.