White Out? Are You Kidding Me!

I could not believe my eyes as I opened the PDF and compared it to the signed original I had sent a few days earlier... an entire section was missing with what appeared to be a splotch of white out!

The problem with this transaction started when I requested the $1200 Fannie Mae offered selling bonus, which is advertised on their website and the listing. The bonus that is being offered, has restrictions that the sale must close by 10/31. When we drafted and sent our offer, the end of September, I requested October 30th as the closing date. However, when our offer was countered the closing date was changed to November 11th by the bank. We accepted that closing date change, but added language that stated that if the home closed before 10/31 the selling bonus would be honored.

We submitted the counter and was told that the offer was accepted. I first suspected we had a problem after placing several calls to the Listing Agent requesting the seller signed docs, without any success. It took an email to the Title company to get a copy of the seller signed docs... and was shocked to see the paragraph that requested the selling bonus whited out!

I immediately sent the original copy, without the redaction to the Title Company and asked them to investigate with the bank what happened to the contract. This set off several angry emails from the Listing Agent stating that they called my office and notified me that the language regarding the selling bonus was rejected. Consequently, their office applied white out to the contract. No call to my office was ever received. Regardless, I have argued that if a call was made notifying me of the rejection, the language should have been struck through and my Buyer initial the changes to the contract. After threatening to take this to our Board, the Bank has had a change of heart and is now honoring the selling bonus language.

I am not sure what games are being played with the Fannie Mae bonus. If the Listing Agent has something to gain by not offering the bonus, or if this coming from Fannie Mae, but either way make sure your bonuses are not erased by white out.