All Forum Posts by: Dean Baluch

Wow. Thanks so much for the responses!

Bear with me as I'm learning terminology here.  My voice mail says that they would take the next course of action which would be "calling the mortgage note due" because they have a document signed stating that I would "help out if we need some documentation from you or some assistance selling the loan".

I believe what happened is that they did not classify it as an investment property somewhere in the process. They were about 12 hours late to closing and I'm from out of state so I had to make arrangements to stay another day also. They were rushing at the last minute. About 10 days after closing I received an email from the title company stating that they were contacted by the lender requesting they update the HUD and they are unable to sell the loan until I do.

The offer which was 191.5k with $5k back in closing meets 3% but not 2% (less lender credit).  The balance due is about $1300.  

I'm in a tricky situation with my first deal.

I closed on an investment property in Georgia and about 10 days later the lender is saying that the deal violates a Fannie Mae guideline in that the cash back at closing exceeded 2% of the sales price.  Subsequently, I am required to send the balance back into escrow, which will be refunded to the seller.  They say I am liable because I signed a document saying that I would offer assistance if they decided to sell the loan.  If I do not, they would rescind the mortgage.  

I'm having a hard time believing I am liable for their mistake. Their reasoning would imply that they could unilaterally change the HUD for any reason if it helps them sell the loan.

The title attorney and broker haven't offered too much help to date other than to ask if the lender would eat the additional cost (they will not).  

Appreciate any perspective on this issue.  Who should be representing my best interests here?  Anyone recommend a good lawyer to assist in this matter?