Can a tenant who accepts CFK later buy that property?

By
Real Estate Agent with Metro West Realty 248313

I have a dilema here...Can a tenant occupying a Fannie Mae-owned property accept a cash for keys relocation package (i.e. take the money and run), and later, when the property is listed, come back and purchase it?

I have this dilema happening to me on two different properties right now and was hoping some of you veteran Fannie Mae listing agents could help me out!

Posted by

Lauren Yates, GRI   President, West Metro Board of Realtors

Comments (5)

Jack Mossman - The Nines Team at Keller Williams in Lodi
The Nines Team at Keller Williams in Lodi - Lodi, CA
The Nines Team in Lodi

Interesting Question Lauren ... and since I don't have an answer .. I'm going to just lurk here and follow the conversation!  Thanks for asking...

Sep 13, 2010 01:02 PM
Pat Fenn
Marketing Specialist for CJ Realty Group/Cindy Jones Broker - Springfield, VA

How would they qualify for the loan? 

Sep 13, 2010 01:06 PM
Deb Jamail
HomeLife Southern Properties - Galveston, TX
Galveston County Real Estate

Lauren

Great question.  I guess the offer from the lender is for a quick move-out on the tenants part, since an eviction would take longer (depending on what state you are in)

Why don't the tenants just purchase the house from Fannie?

Standing by as well for other thoughts!

Sep 13, 2010 01:14 PM
Lauren Yates
Metro West Realty - Carrollton, GA

I should clarify more to help the discussion.  I have a tenant, who is the neice of the actual owner.  There is no lease, and the foreclosure took her completly by suprise.  She actually qualifies for a loan on her own and would have purchased earlier from her aunt had she known the situation.  Now, the foreclosure has taken place, and the niece wants to buy!  My question is:  if she accepts the CFK, moves out temporarily, can she buy once the house is listed?  Or does she have to get the ball rolling immediately and buy without moving out?

Thanks for the responses!  I hope someone can clue us all in on this one!

Sep 13, 2010 01:23 PM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL, CA, FL, GA, IN, NC, SC, TN, TX, VA

I am not aware of any restriction to her doing that and I do a lot of FNMA REO's.  The listing agent of the REO will offer the occupant of the property CFK.  It doesn't have to be the owner and I have not heard of them asking for leases.  Moving out would be a must I though.

Had she tried to purchase the property from her aunt, that might have been a problem.  Since she would have been related to the seller (aunt to niece), it would have been considered to be a non-arms length transaction.  A non-arms length sale typically requires a larger down payment.

Sep 13, 2010 01:56 PM