FannieMae rant!!!!!

[Don Hines]

I have had a FNMA property under contract a few weeks now and was to close on it tomorrow after a few minor delays. I just got a phone call fom my bank telling me I could not borrow as much as I need according to an addemdum to the purchase agreement. I saw it, but, I read it to say I could not convey for a certain amount for 3 months. I am not wholesaling it so I didn't think much about it. My bank was going to supply the purchase and rehab. But, now they tell me they can't due to this clause the title company discovered today. The amount FNMA has in the contract is about $20000 less than I need.
I have instructed my agent to tell their agent the deal is off if this is not struck from the addendum. I have a financing contengency. So, I don't think my earnest money is in jepardy.
This is the craziest thing I have ever incountered. What right do they have to control an aspect of this deal after I have purchased it from them?
Don

[Steve Babiak]

Don,

The loophole to try: you are encumbering the property on the SAME DAY as the deed, and the seller is aware that you are doing so in order to purchase it, so your seller should be agreeable to make the dollar amount of the restriction at least the amount of your financing!

JScott - FNMA also is trying to thwart those who pursue the cash-out refi within the restricted interval; kind of silly, since most lenders have some seasoning period that must be met anyway - but not all have that seasoning requirement, so ...