Fannie Mae is holding a house hostage, they won't let my cash buyer buy it.

By
Real Estate Broker Owner with Lane Realty GREC# 169695

Back in October I was sitting in the office when someone stopped in because they had found a property on the Internet.  They were looking for this property.  Well I found it in the MLS, immediately knew the property (yes I know my market area) and contacted the listing agent (had to leave a voice mail).  My call was quickly returned and I head out to show the property knowing that lots of interest was being shown. 

The next day the buyers came back with friends and took a second look and wrote an offer.  By this time I was told there were multiple offers so I informed my buyer and told him my opinion of value based on a CMA and he "went for it" and put in an offer higher than list price.  Cash deal.  We had an inspection found a few things, but still buyer wants to move forward.  Then we hit a wall. 

The land is owned by Georgia Power.  It is on the lake and they lease this property to people.  In Georgia leasehold property is "real estate" and can be purchased using a security deed just like fee simple land.  Now when Georgia power owns the land they have a say in the paperwork.  Not only does every leaseholder have to sign a lease because the amenities are owned they also have to sign a Georgia Power form called a "conditional bill of sale"  Well Fannie Mae who backed the previous mortgage and then foreclosed is REFUSING to sign the conditional bill of sale.

Now they can keep the property and pay the lease annually or they can sell it for MORE than list price to my CASH BUYER.  Now which one of those things makes more sense to you?  I mean the American taxpayers loaned them 85 Billion Dollars So one would think if they could unload one of their property holdings (are they in the property ownership business or the loan business?) they would be happy to sell it for more than list price.  But no, their attorneys just "don't want to sign this form".  Period. 

And I'm assuming (I know a slippery slope) that it's not just MY buyer they are picking on, but that they won't sign this form for anyone.  So potentially upwards of a million dollars worth of properties in just my area can't be sold and Lake Sinclair is NOT the only lake in Georgia owned by Georgia Power. They also own Lake Burton, Lake Rabun, Lake Seed, Lake Jackson, Lake Juliette, Lake Hardin, Lake Oliver, Lake Worth, Lake Oconee  (that's not all, but I think you see my point.  My buyer has contacted his congressman.  I am about to contact mine and both my Senators. 

Have you EVER heard of anything this stupid?  Well of course you have I bet some of you have sold HUD, Freddie or Fannie homes and it's nearly always something stupid involved isn't it. 

I'd appreciate help in this one going viral.  I'd love as many eyes, ears and mouths seeing this as possible.  So could hit that Like button and ask your friends to read it.  Perhaps email a link to your congress person and ask if they have any say so with Fannie to MAKE them sell to a cash buyer for more than list price so we, the American tax payers, can get a little less in debt.  After all don't we ALL have a stake in Fannie and Freddie?

close

Re-Bloggged 7 times:

Re-Blogged By Re-Blogged At
  1. Emmary Simpson Tierra Antigua Realty - Tucson AZ 12/20/2011 03:49 PM
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  3. Robert L. Brown 12/20/2011 08:29 PM
  4. Praful Thakkar 12/21/2011 01:20 AM
  5. Barbara Tattersall 12/21/2011 06:56 AM
  6. Linda Edelwich 12/21/2011 08:23 AM
  7. Karen Hawkins, MBA - Langley & Surrey, BC 12/22/2011 04:38 AM
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Rainmaker
501,220
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Seeing the document, I can't  imagine the problem.  Did they not  foreclose on the leasehold estate?  Now, I really don't get it!  Please keep us posted ...

December 21, 2011 04:15 PM
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1,395,023
Tammy Lankford
Your Lake Sinclair Expert (706-485-9668)
Lane Realty

Carla- Georgia power owns the land.  They require buyers and sellers of leasehold to sign the form.

Brian- I know, if I'm going to use logic we can't talk about a government agency

Steve- and they are sucking up our oxygen

Coral- it's nuts.

Mary-  certainly seems like a no brainer to me.  First the backed the loan on leasehold, then they foreclosed on a leasehold but now they won't sign a bill of sale to sell it??

 

December 21, 2011 04:41 PM
Rainmaker
568,777
Phil Leng
Phil Leng Team - Residential Real Estate Experts &
Keller Williams Eastside Market Center

Hi tammy,

That is a most unusual set of circumstances!

Good luck navigating through the sale.

Phil

December 22, 2011 06:17 AM
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1,305,410
Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Tammy - this could be the problem because of the basic rule of real estate. It is local. But Fannie Mae is a Congressionally Chartered Corporation and they are not local. Their rules are written to encompass the whole country, and this provision with leasehold might be your local peculiarity;

They might go to the "drawing board" with their attorneys and craft something that would clear the issue for them, but this is exactly what they are avoiding, using the preapproved forms.

Everything that does not fit it 100% is not permitted.

i know this does not help, and it is not that what I said is 100% true, but I can see the problem here.

December 22, 2011 10:43 PM
Rainmaker
217,728
Ava Anderson
REALTOR-Dedicated to Superior Service
Solid Source Realty Inc

It truly makes no sense, but like you said this is normal behavior for them.

December 23, 2011 04:42 PM
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Tammy Lankford

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