I know this is a short sale forum so may be this question is inappropriate.
I have a Fannie Mae property I was to acquire, it is a foreclosure property and one day before closing, the title agent (designated by Fannie Mae) said that the property's legal description has an error in it (some sort of recording error) and they could not move forward and the closing was cancelled.
They are now in the process or clearing the title and last I heard (three weeks ago) they need to do a RE-foreclosure and I was advice to be patient as it could take 3, 6, 9 months...
My attorney told me since they didn't deliver clear title I could walk away and get my deposit back. So far I am out the money for the inspection and survey. It is a cash offer and seller demanded 10% deposit so they are holding 18K of my money for 3, 6, 9 months?
I still want the property, but I am not too excited about them holding my deposit while they take their time fixing this. I don't even know what a REforeclosure it, neither my agent or my attorney have been through this. Is there some way I can get my deposit back and "reset" the deal when they get close?
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I would cancel this sale and let them work out the title issue. It sounds to me like not all people on the chain of title were notified of the foreclosure, so then the bank many times has to RE-foreclose, but that is different in different states. Either way, I wouldnt tie up that large of a deposit. The selling agent can let your agent know when the house has clear title and you can initiate a new sale.