I was bidding on an fannie mae property against one other buyer in the first couple days it went on the market. It was still in the owner- occupant time frame. I do things the right way, and was planning on moving into the house. But an investor outbid me. Once he closed on the house he quickly cleaned the place up and rented it. So I am not happy. I know that the contract says that fannie mae can take the house back from the buyer and/or a 10k fine if they find out you were acting as an investor. My question to you guys is do you think I can somehow make fannie mae repossess the home from the investor and give it to me?
No. But visit their website and look for a fraud reporting number. Or just get on the phone with them. Help level the playing field, one short cutter at a time.
I've had this happen a few times in my area. I tried to find a way to report it, but couldn't. I think it's a bad policy, but those of us who follow the rules shouldn't have a disadvantage. If you can find a way to report it, go for it and let us know how it goes!
Move on the the next deal, there's no profit in losing and even less in whining about it. Just because you play an honest game does not mean everyone else does. All you can do is keep moving forward and maintain your standards.
It would be one thing if this investor pulled a fast one on me. But if fannie mae fails to properly screen the prospective buyers, and then fails to bust them for breaking the contract once they are caught red-handed, I believe I have a case against them.
Write a letter, a paper letter, to the head of Fannie.
Of course you should report them. That investor cost you money and that's not fair. I wouldn't even hesitate.
I say report them because they should not be rewarded for breaking the rule, while honest peoples suffered because we have dignity. I owned a small business and too often seen my competitors breaking the laws. It seems that the system is broken, if we don't fix it now then when? I have started tracking HUD homes in my area during Owner occupied period and if I see that home is up for sale in 4 months completely renovated with markup price. You betcha I will report that person after looking at the tax record to make sure that person own more than one homes. Not doing it to be spiteful, just making sure it is fair and keep everyone honest.
Report them! It is not whining and they should be forced to play by the same rules as the rest of us.
I would also report them.
The only thing necessary for the triumph of evil is for good men to do nothing.
I recommend reporting it, report the buyers realtor as well.
The buyer and the buyers realtor have to sign an owner occupant certifticate, stating this house will be used by owner occupant.
If we get a few realtors in trouble for knowingly submitting such offers, probably our best chance of leveling the playing field.
Let us know how the reporting process goes and the end result. You will have a lot of honest rehabbers supporting you.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.