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

By
Real Estate Broker/Owner with Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 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-Blogged 7 times:

Re-Blogged By Re-Blogged At
  1. Emmary Simpson Tierra Antigua Realty - Tucson AZ 12/20/2011 03:49 PM
  2. Steven Cook 12/20/2011 07:16 PM
  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
295,432
Charlie Dresen
Steamboat Sotheby's International Realty - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Another frustrating example of how people operating in businesses they shouldn't be in are mucking up the process. Good luck and here's hoping your post prompts some emails and phone calls to congress reps.

Dec 21, 2011 07:01 AM #41
Ambassador
1,617,579
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

Pamela- well I don't think it can happen that soon, but I do hope it happens.

Sandy= It's totally nuts.  I don't even know their reason "why" they won't sign it.  But they are not my client and I can't even ask the question.

Regina- and it stinks.

Praful- I have an entire sack of words, but they are ugly words.

Jane- see comment to Sandy.  And listing agent seems as frustrated as me.

Thanks Gabe.

Brabara- I feel so bad for my buyers and such nice people.

Charlie- and you can't talk to anyone in this business without finding an example.

Dec 21, 2011 08:16 AM #42
Rainer
115,635
Linda Edelwich
William Raveis Real Estate - Glastonbury, CT
Glasotnbury Office's #1 Top Producing Agent-not on

I cant believe this - what is the "issue" with them signing that one form?  What other "rights" or whatever do they give up when they sign that one form? Any chance we can see the form?

Dec 21, 2011 08:18 AM #43
Rainmaker
200,434
Alan Kent
Keller Williams Realty Lake Oconee - Greensboro, GA
Lake Oconee Real Estate

The stupidity of government organizations never ceases to amaze me! Keep fighting the good fight for your buyers. I know you can win!!!!

Dec 21, 2011 09:07 AM #44
Ambassador
1,617,579
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

I have a copy at the office.  I'll spot when I go in today.  I have no idea why they will NOT sign it.

Dec 21, 2011 09:08 AM #45
Rainmaker
465,297
Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN
SpousesSellingHousesTM

Tammy -> This would make a great episode on 60 minutes! email them :)

Dec 21, 2011 09:50 AM #46
Rainer
171,123
Jim Shaw
Premiere Plus Realty Co. - Naples, FL
Real Estate Sales Associate, Naples Luxury Real Estate

"Well, here's another fine mess you've gotten me into," say Oliver Hardy to Stan Laurel!

Something's amiss when you risk losing this sale of a cash buyer because of Freddie/Fannie's incompetence.

I had a cash purchase offer on a short sale that would have paid off Freddie's balance. 

But nooooooo.  

They foreclosed and put it back on the MLS for $30,000 less than my buyer's cash offer.

No wonder the federal gov't is 15 TRILLION in debt and counting.

Freddie/Fannie are losing billions but their executives are receiving Bonuses...................

Isn't it time to vote out ALL career politicians?

Dec 21, 2011 10:12 AM #47
Rainer
35,329
Debra Higgins
Four Seasons Virtual Tours - Crown Point, IN

And we should let the government handle our health care?

Dec 21, 2011 10:23 AM #48
Rainmaker
520,851
Mary Douglas
United Country Ponderosa Realty - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Hi Tammy, understanding that they are dealing with a "stupid" giant...is there any other documentation that Georgia Power would accept in lieu of the conditional bill of sale?  I'll click "Like" and hope that you can find a solution for your buyer.

Dec 21, 2011 11:01 AM #49
Rainer
229,084
Adam Tarr
Citywide Real Estate - Scottsdale, AZ
PC -GRI, ABR, CDPE, RSPS, ePro - Associate Broker

Logic, we don't need no stinking logic...!  There always seems to be some convoluted back room reason for these things that normal people just don't grasp.  We may never know why there ridiculous decisions are made

Dec 21, 2011 11:58 AM #50
Ambassador
1,617,579
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

Linda- here is the document.  One page VERY straight forward and simple

Alan- for my buyers sake I hope so.

Jeff & Grace- done

Jim- that's certainly my plan

Debra- should?  well no, but it does appear to be moving in that direction.

Mary- see document here and no, they too are stuborn, but the document is so simple.

Dec 21, 2011 11:58 AM #51
Rainmaker
1,322,808
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

I wonder what the reason is?  Why doesn't GP just sign the Bill of Sale and Transfer the Lease to the buyer?  What's their plan . . . ?  Their M.O.???  Do they want to force foreclosures on to the owners?  Do you think Fannie Mae is working out some kind of back-door deal with GP?  

Dec 21, 2011 01:53 PM #52
Rainmaker
348,053
Brian Rugg
Rugg Realty LLC Sun City Texas 512-966-3200 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Tammy:

Having lived in Atlanta and familar with the lake/resevor system there I hear (and understsnd) your frustration.  My only question is when did you start thingking any govenrment agentcy had brains?  As Forest Gump said,"Stupid is as stupid does"

Dec 21, 2011 01:56 PM #53
Rainmaker
871,258
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

The question was "have you ever heard anything so stupid?" Yes I hear about this kind of thing all the time.

Dec 21, 2011 02:08 PM #54
Rainmaker
262,333
Coral Gundlach
Century 21 Redwood Realty, Arlington Virginia - Arlington, VA

Just retweeted, liked and plus 1'd it.  This is nuts. Lawyers.

Dec 21, 2011 03:39 PM #55
Rainmaker
520,851
Mary Douglas
United Country Ponderosa Realty - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

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 ...

Dec 21, 2011 04:15 PM #56
Ambassador
1,617,579
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

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??

 

Dec 21, 2011 04:41 PM #57
Rainmaker
579,566
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi tammy,

That is a most unusual set of circumstances!

Good luck navigating through the sale.

Phil

Dec 22, 2011 06:17 AM #58
Ambassador
1,352,636
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

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.

Dec 22, 2011 10:43 PM #59
Rainer
221,208
Ava Anderson
Solid Source Realty Inc - Snellville, GA
REALTOR-Dedicated to Superior Service

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

Dec 23, 2011 04:42 PM #60
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