Upcoming Foreclosures

Fannie Mae thinks my home purchase is a bail-out?

I'm trying to buy my mothers house. She was foreclosed on and the bank now has ownership of the house. She has taken up residence in my grandparents old house so she has no interest in the house I'm buying. Fannie Mae has decided to deny my loan because they say I am bailing out my mother from her foreclosure. Is there anything I can provide or tell them that is not the case, that the house is for me and not my mother?

Public Comments

1. This is not an "arm's length transaction" - meaning - you cannot by a close relative's former home. Their rules. You cannot buy this as a foreclosure.
2. Nope You are trying to do what is considered not an arms length transaction, and for all they know, you are just trying to buy back your moms house for her. It won't fly.