Thank you all for reading my post relating to the new Fannie Mae Addendum, titled NPDC FORM 001 DATED 11-30-09. I will attempt here to answer some of the questions that have been presented to me over the last week or so from many of you who have called or e-mailed your questions to me. I want to thank each and every one of you for taking the time to read my blog and to invite you to continue to feel free to call on me. Naturally, I will be happy to assist you with all of your title and settlement needs here in Maryland too!
Let me start out by saying a few things:
- I am not an attorney
- I CANNOT give you a copy of the Addendum
- I am not a Realtor
- I ONLY work in Maryland
- I DO NOT know Fannie Mae rules outside of Maryland
So, with that being said, here goes:
Why was the form changed?
The form was changed to enable Fannie Mae to sell their properties in a more traditional way when acting as sellers of foreclosed properties.
What are the most pertinent changes affecting buyers:
The most pertinent changes that affect your buyer are (in no particular order)
- An affirmative statement that specifically states that the purchaser has the right to choose the place of closing and the right to make an independent selection of their own attorney, settlement company, escrow company, title company and /or title insurance company in connection with their closing.
- A statement allowing the seller to terminate the contract if the purchaser changes his financing or choice of lender. (This would typically cause a delay in the settlement date) so I can only assume that is the purpose of this language.
- A clarification as to the acceptance date; The term Verbal Acceptance has been changed to read "Acknowledgment of Sufficient Offer", which occurs on the "Acknowledgment Date" Acknowledgment date refers to the date that the seller has deemed the offer to be materially sufficient. Fannie Mae uses the Acknowledgment date to calculate many dates.
- TRANSFER TAXES: Seller will pay if usual and customary for a seller to pay if the Fannie Mae exemption is not recognized.
- CLOSING COSTS: Without going into a long winded discussion the gist of it is that any closing costs negotiated to be paid by the seller on behalf of the buyer are EXCLUSIVE of any transfer taxes and stamps paid by the seller, if those transfer taxes and stamps are usually and customarily paid by the seller.
- Re-Key, this is not an actual change, but a clarification. The buyer will be charged at closing the cost of re-keying the property to a Master Fannie Mae key. This being said, the buyer should still be reminded that they are going to want to change the locks immediately after their settlement as those master keys are used statewide.
- AND FINALLY, this form is being used throughout the nation.
Please feel free to comment on this blog and to contact me with any questions you may still have relating to this new addendum. Wishing you all the best in your REO transactions.