MLM Directory

Is it possible to remove a Freddie Mac foreclosure property from the selling market because of a legal issue?

I recently made an offer for a Freddie Mac foreclosure property and the realtor just informed that my offer was not submited because an issue came up and Freddie Mac has requested to remove it from the market until it clears out. Is that possible, why did the list it in the first place?

Public Comments

1. Yes it is possible and the agent may not have been aware of the legal issue prior to the listing. Issues such as these do not come to light until a title report on the property is ordered.
2. It is possible that the realtor listed, then the title search came back with some outstanding liens against the property and now they have to be cleared and payed off before the place is salable. In other words, they cannot guarantee a free owned title to the buyer if they were to take possession.
3. It happens with regularity. Not long ago, we had a FHA removed from listing for a similar situation. FHA discovered that it did not have clear title to the property and immediately removed it from the market. You need to understand just how large Freddie Mac is, and the variety of departments involved in disposing of their REO inventories. Now and then, the marketing department releases a property for listing before the legal department has cleared title.