CALSTRS and Fannie Mae Underwriting

[Ed Forrester]

Running into a glitch in California. Buyer was using CALSTRS loan (teacher union) which to my understanding is a conventional loan that underwrites to Fannie Mae guidelines.

This is AB to BC transaction. When we reviewed the details with lender doing loan (Bank of America), we were told that there would be no issue with no title seasoning. And that we could get up to pre-funding conditions before we would have to close. Which would have been fine.

Now of course....days before closing...lender is stating that they actually need us on title before the BC purchase agreements are signed.

Scrambling now...hoping to make it work with this buyer and not have to go to backup buyer.

Questions for the forum:
1. Does Fannie Mae require B seller on title before BC purchase contracts?
2. Anyone familiar with CALSTRS? Done a successful AB/BC?

Thanks for the help.

[Luiz Souza]

Scott,

Isn't it true that every lender/investor follow pretty much same guidelines as far as B being the owner on title? We had a SS shot down by BOA last month for the very same reason mentioned above and of course at the very last minute, I guess they enjoy that kind of $^%^!! So if you are using the Option or any other contract or agreement to do a back to back how do you get around this issue? I really miss LT:(