Learned about Fannie Mae too late

[Elizabeth Pharis]

Unfortunately we didn't fall under the category of "deal fell through at the last minute."  Ours went through.   Long story short, we found a house on Coldwell Banker.  Drove 4 hours to look at the property....twice.  Put in a low ball offer, it was sent back, made another, it was accepted.  Drove back again to give a check for earnest money.  It was a major fixer upper so we immediately started with contractors bids, no one could find the address.  I emailed our agent and asked to make sure we're buying the right house on the right property.  She stated it was a 911 address change but, assured me, "they did extensive research through the appraisal district" and it was correct.  Sent a wire transfer to the title company and paid all cash for the house.  Went to closing, got the keys, and started the repairs, another 60k later in repairs, and we find out Fannie Mae never forclosed on the property.  They took payment on a house they never owned.  Now everyone is playing the "not it" game.  

[Greg H.]

@Roy Oliphant

"I am not a lawyer disclaimer"

Ultimately I think she will win but is a win a win with a protracted lawsuit?

Here is what I see as the roads to recovery by ease:

Heirs-  I think the term is unjustly enriched. She has a lien on the property so they would not be able to do anything with it until she is made whole at least for the upgrades. They could do the right thing and deed it to them but if the estate has any creditors there is potential issues. The heirs could let her foreclosure as well on their vendors lien

Agents- Claim against the agents for misrepresting a property. Even though they relied on info provided to them. If they work for the same firm and did not provide an intermediary agreement they probably need to dust off their E&O policies

Title Company- IMO they need to step up and solve the problem but they could rely on the "unsurveyed property " provision. I probably would file a complaint with the State Board of Insurance. Title Insurance companies have deep pockets and I would prefer not to get in a lawsuit with them

FNMA- if the upgrades were not done I would think it would be easy to unwrap the transaction. How are you going to convince a pseudo government entity to pay for the upgrades in addition ? Another potential litigant with deep pockets

What do y'all think?

@Wayne Brooks

@Jay Hinrichs

@Bill Gulley