Fannie Mae declines my condo due to delinquencies in the neighborhood.Lending bank appeals, now what?
I’ve been under a contract for buying a foreclosure for about 6 months now. Today (9/25/2009) was the day I would have settled, however I find out 1 hour before settling time that Fannie Mae has declined my condo, according to my lending bank (Suntrust). After communicating with Fannie Mae, Suntrust tells me Fannie is afraid of investing in this property I want to buy because the homeowners in that neighborhood are not paying their mortgages and there are reported delinquencies in that neighborhood. Somehow, these delinquencies are affecting my ability to settle on this house.
I separately called Fannie Mae directly via telephone and one of their level 1 representatives told me that they “back” the property I want to buy (i.e. they are willing to invest money in it) but they feel it’s too risky because they think I am “unqualified” as a buyer.
But this is all very conflicting because my loan was approved with Suntrust and their underwriters. In fact, my credit score is 700+.
The Fannie level 1 representative said the reason is unknown why they think I’m unqualified and the only way I can find out is by talking to Fannie level-2 representative, who will get in touch with me in 1 week since they are super-busy people.
So now Suntrust is in the process of appealing the decision recently made by Fannie Mae. Is anyone familiar with appeal process with Fannie? Does anyone have any suggestions for what I should do? Legal advice?
All / any help from anyone out there will be much appreciated (realtors, lenders, sellers, etc..).
By the way, the property is in Howard County, Maryland