Fannie Mae buyer to pay title using Fannie May closing company

[Jerry R.]

Has anyone else run across this?

For the second time in the past month, I have run across an additional term on the contract for a Fannie Mae property that makes the buyer pay title.

This one states: "Fannie Mae buyer to pay title using Fannie May closing company". I assume by title it means just the title insurance. If they are going to make me pay title insurance, I should be able to close at my own title company.

These 2 properties are the first ones that I have made on Fannie Mae properties that require me to pay this cost. I am aware that taxes and doc stamps are always my responsibility. Is this typical that Fannie wants the buyer to pay title?

As far as the title company, I figure I am ok selecting my own company as the addendum supersedes the original contract. The addendum states that the buyer has the right to select the closing company, title company, etc.

[Jerry R.]

There are a lot of Fannie properties here. I am in SW Florida and we were hit hard here with foreclosures so what is true here may not not true in other places.

I believe the listing agents choose the listing price which may or may not be realistic, so I don't worry too much about list price - they will accept less if they need to.

Fannie has a 15 day first look program where they only accept offers from would-be owner-occupants. That time period seems to set the real price. If they are priced correctly they rarely make it to the investor stage. If they do make it past the 15 days you can bet it is over priced and can go in with a lower offer. Fannie wants it gone, you just need to have the strongest offer.

Don't make your offers based on listing price. Know your costs and how much you can sell it for and what you want to make. The numbers need to work for you.