Jeff’s Carlsbad Blog for First Time Home Buyers

Can Your Transaction Get Audited? YES!

Posted in General Information,REOs by Jeff Dowler on August 22, 2009
Tags: , , ,

This may not apply to all transactions during the process, but it does at least with FNMA (Fannie Mae) and Freddie Mac if you are purchasing an REO. Perhaps other lenders as well.

I am in the midst of a transaction with a very tight deadline and all of a sudden we learned that FNMA has pulled the REO file for an audit.

It has nothing to do with the offer itself (this is a cash deal, not a loan), the buyers, or the transaction, but apparently is a routine, random, periodic audit that they do of their REOs that are being serviced by various banks. No warning.

This is NOT to say this happens a lot (the listing agent says this is the FIRST in all of her REO transactions in over 2 years) but it CAN happen, without warning.

This causes a delay of an unknown period. Just something to be aware of, although lots of folks get through these deal without this sort of delay.


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