As a buyer am I still protected by inspection contingencies for a Fannie Mae Homepath property despite them being "as is"?

Anyone here knowledgeable about Fannie Mae Homepath contracts/offers?

My wife and I are submitting an offer on a Fannie Mae property, and we know we'll have to replace the roof due to seeing multiple water stains on the ceiling and some mold on the ceiling in one of the closets. We're also budgeting for mold remediation, obviously. However, let's say the inspection reveals that the mold is way more extensive (e.g., all over the attic and in all the walls) and will cost way more than we can afford, are we still protected by our inspection contingency and the Fannie Mae addendum that also includes an inspection contingency?

If I'm reading the Fannie Mae addendum correctly, it sounds like they allow the buyer to note anything that they don't like from the inspection results, and the seller can fix/repair it if they want (I realize they likely won't). If the seller opts not to fix/repair, it says the buyer can back out and get their earnest money back. However, there is also another part that says something specifically about mold and basically that the buyer is satisfied with the condition of the home regardless of any past or present mold. Would the inspection contingency (in Fannie Mae's own addendum) still allow us to back out if the house turns out to be completely covered in mold in the attic?
(1) | asked by: Jason A | share | 4 weeks ago | Report
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Jason  A
answer by Jason A   
Thank you Seth. Yes, we are working with a Buyer's Agent, but she wasn't sure so I thought I would ask here. I don't think our Agent has much experience with Fannie Mae listings, since she also suggested we do something like an escalation clause in our offer (e.g., we'll offer X amount more than any other offer up to a certain max amount), which after doing some research sounds like is not permitted for Fannie Mae properties. Is this correct, or is this kind of offer still done, maybe just not officially (e.g., verbally between the agents)? Also, thank you for answering my original question. That's the impression my wife and I got, but we wanted to get a more qualified opinion.
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answer by Seth Peterson    |   Contact Me
Hello. I am a Fannie Mae listing agent. Are you working with a Buyer's Agent? If so, ask them about this. If not, you should get a Realtor working for you moving forward if you end up terminating this transaction. To answer your question...if you are in the 10 day inspection contingency timeframe, then I doubt Fannie Mae is going to give you any trouble if you want to terminate the offer. Notify the listing agent that your inspection found issues you don't like and you want to terminate the offer. I wouldn't expect it to be a big deal.
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answer by Cathy Lacy    |   Contact Me
This should be reviewed by an attorney before submitting this offer, as agents we cannot act as an attorney and interpret contracts. I know it may take a bit longer and involve some expense but it is important that you make sure you are protected in this transaction. There are good real estate attorney that should for a small fee help you with this.
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