Real Estate Broker · Mount Olive, IL · Member since 2013 · 1k+ posts · 310 votes
Hi BP,
I got my termite inspection report today. It shows evidence of past termite damage with no professional treatment. I'd like the seller to pay for this treamtement ( $700 ).
It's a Fannie Mae owned property. I just got an email from the listing agent and she is claiming (without submitting my response to Fannie Mae) that seller will NOT pay for it.
I just read the Fannie Mae addendum, however I didn't find any specific language regarding termite damage.
By the way, I am getting financing for this property from a portfolio lender.
Investor · Cranford, NJ · Member since 2012 · 303 posts · 153 votes
12y
Fannie Mae doe not repair properties. I have bought a fair number of Fannie properties and you take what you get.
With a portfolio loan this may be difficult, you can try to get them to lower the contract price by 700 or establish a repair escrow at the time of closing to ease your portfolio lenders nerves.
I would have your attorney try and push on the sell side and see if something can be worked out.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
I had an executed contract fell apart with Fannie Mae due to black mold.
That house had termites too, active termites, not "evidence of termite damages" which could mean live termite infestation or past termite infestation. I visited the property multiple times and noticed winged reproductives and fresh droppings in areas where previously weren't present.
I didn't even bother with the termites.
But I was concerned about the molds. Not your typical mold, but black mold.
Stachybotrys, ELEVATED, at a count of 140,000 per cubic meter. Called the agent and the agent said "WOW, this is bad, we can't sell a house with toxic black mold." I asked FNMA to mitigate the mold then we can move forward with the deal, five minutes later agent called back and said FNMA will fix nothing, take it or leave it. I decided to leave it.