Fannie sold me an ILLEGAL 2-unit property

[Marvin Anaya]

Hello BPers!

I purchased a property from Fannie Mae via FHA financing in April near Chicago. The property is in unincorporated Cook County. After purchasing the property, I received a violation in the mail from Building and Zoning saying that a permit was never issued for the conversion of this property. I even spoke with Building and Zoning and they said this is a single family and no permits have ever been issued to convert it. They also said DO NOT RENT IT until you apply for a Special Use Permit (which takes 5 months to receive). This property was a single-family home and I believe it was converted about 10 years ago.

Now, how is it possible that Fannie Mae listed this property as a multi-family with 2 units on the MLS ? Taxes show it as multi-unit. The appraisal shows it as a 2 flat. I received FHA financing using the income from one of the units - otherwise I would not have been approved.

I am due in court at the end of June for this violation. Any advice or help is MUUCH appreciated.. this is scary to me as a first time buyer.

Marvin