Question on Fannie Mae Counteroffer

[Ursula B.]

Hoping anyone that has bought from Fannie Mae can help on this.  Just  got a counter from Fannie Mae, and we are $4K apart.  They are $2K down from list price.  Since there were multiple offers and I have a financing contingency, I'm assuming I was highest (they only countered price). Am I safe to counter? I'd like to go up $2K, but would hate to lose the property over $2K. Any insight is appreciated.

[Ursula B.]

@MONICA WATSON Unfortunately no. The seller didn't foreclose on all owners, but after a little back and forth the title company agreed to insure over the defect because the HOA did foreclose on all of the owners. When it was time to close, Fannie Mae refused to pay off the $4,600 HOA lien. Four attorneys and four weeks later, the HOA wouldn't waive it, and the title company wouldn't insure the title without it being paid or otherwise satisfied. I asked Fannie Mae to reduce the sales price by $4,600 so I could pay off the lien, and they refused that too, saying they were going to pursue the HOA legally in court.

I didn't want to tie up $80K cash indefinitely, so I walked away.  And still had to pay my attorney for two months of work.  I'm probably done with Fannie Mae.

Good luck on your contract, I wish you an uneventful closing!

Ursula