FNMA Owner-Occupied Problem

[William Donaldson]

Greetings BP!

About a month ago I put in a bid for a condo that I will live in while I rent out the other three rooms to friends for the remainder of college. We knew it was coming on the market and put in the first offer, but FNMA came back saying there were two offers and asked for highest and best. Our final offer was higher than the other party, but they are paying with all cash.

Fast forward a few weeks and the agent I'm working with finds out that the buyer is NOT going to be living in the condo... Because the buyer is an investor that my agent, who also owns a property management company, handles a rental for in the same complex! Without going into details he is positive that the investor will not be living in the condo. My agent believes the FNMA broker isn't trying to break any rules and that this is probably on the FNMA negotiator's side as there were several other units that have been bought for all cash by investors AFTER the 15 day owner-occupied period.

How do I approach this situation? The condo is third story, has a great view, and I along with my friends loved it! I know I should call the broker first, but how do I broach the subject with her? What if she knowingly is allowing this guy to essentially commit fraud and stonewalls me? Who do I contact at FNMA?

Thanks for the help!
HD