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

[Jon Holdman]

Yep, this is due diligence you need to do up front.  Listing agreements, listings and contracts always say "information believed accurate but not guaranteed."  You have no recourse against the seller for the "illegal" nature of your purchase.  Lots and lots of illegal duplexes out there.  Buyer beware.  Welcome to the school of hard knocks.