Just need to vent...after two long months and four (yes four!) attorneys trying to get my first Fannie Mae deal to closing, my deal is officially dead.
Deal was a townhouse where the HOA foreclosed as well. HOA would not waive the lien and Fannie Mae refused to pay it, saying they didn't owe it. I obviously wasn't going to pay it. Asked FM to reduce the sales price and I would pay it...because maybe there's an issue with them paying it directly. Well just got word that FM has decided to pursue the HOA legally.
We're talking about a $4,600 lien on a property I had under contract for $77.5K cash. They will spend more than $4,600 in attorney fees and holding costs to pursue this with the HOA. And I just don't believe this is the first time FM has dealt with an HOA that had a lien on the property. Maybe this is the first time the HOA stood their ground and demanded to be paid?
Trying to remind myself there are no emotions in this business, but this is tough to take.
(Thanks for listening...)
Yep, nothing you can do. You never know the real issues sometimes. Occasionally banks will screw up here procedurely, and lose their safe harbor exemptions from most HOA fees. The rules are different in every state for HOA liens, and sometimes they just screw it up!
Ursula. It is great that you took the time to write about your frustration with a deal. This helps to remind everyone that even though it is recommended to keep emotions out of business, the fact is, humans have emotions and they come up once in a while.
The good news about this particular experience is the education you received from this situation. Most likely there were unknown factors that may have saved you a lot of grief in spite of the numbers you were looking at during the process. Chalk this one up as simply a deal you did not get and confidently move forward. That closed door means another one will open.
Thanks for the words of encouragement @Victoria Winters ! Everyone involved was pretty frustrated by this deal. But after a good night's sleep, I'm off to the next deal.
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