@Brian Rodriguez
Here are the guidelines for Freddie Mac in this scenario. The lender's legal team, underwriting, appraiser, and title company would have to agree with the terms below.
Any exception not set forth above in Sections 4702.4(a) through 4702.4(l) is acceptable only if all of the following conditions are met:
- 1. The subject of the exception must not interfere with the use and enjoyment of any present or proposed improvements on the Mortgaged Premises or with the use and enjoyment of the balance of the Mortgaged Premises not occupied by improvements
- 2. The subject of the exception must not affect the marketability of the Mortgaged Premises
- 3. The subject of the exception must have no or minimal effect on the value of the Mortgaged Premises
- 4. The subject of the exception must be acceptable to the MI if the Mortgage is insured
- 5. The subject of the exception must be commonly acceptable to private institutional Mortgage investors in the area where the Mortgaged Premises is located
The Seller shall warrant that all exceptions to the title insurance policy or to the attorney's opinion of title are permissible under this section. Freddie Mac will not issue any letters addressing the acceptability of particular exceptions nor waivers of the above requirements.
https://guide.freddiemac.com/app/guide/section/4702.4#:~:tex....
