Valley man loses money buying government-owned home

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PHOENIX – Kit Peak says that when it comes to a roof over his head, he needs something a little bigger for him and his dog. 

"Currently right now, I live in a three bedroom condo.  I'm looking forward to moving out and getting a home," Kit says. 

Not only is Kit's condo kind of cramped, but he rents it. So not long ago he started looking for a house to buy and his realtor came across an east Valley home owned by Fannie Mae. 

Kit loved the house. "This means everything to me.  It means a home, it means a family, it means a future just to have a home."

Kit put this offer in on the house and the offer was accepted by Fannie Mae. As a result, he moved forward and, like most buyers, he paid for an appraisal. He paid for an inspection and he even paid for a termite inspection for the house.

In all, Kit spent nearly $900 only to be told that Fannie Mae really didn't own the house after all and that the sale was not going through. He says, “Nobody is holding them accountable. They are able to do whatever they want and hurt people in the process and that's not right."

3 On Your Side obtained documents indicating Kit's dream home was foreclosed on erroneously by a previous mortgage company and that the house was sold in error before handing it over to Fannie Mae.

In essence Fannie Mae assumed ownership of the house when it never really owned it all which brings us back to Kit, who spent nearly $900 buying a house that technically shouldn't have been for sale. 

"This amount of money means everything. It's my livelihood," he says. Unable to get his money back from Fannie Mae, I contacted them and after I did, Fannie Mae immediately reimbursed Kit all of those fees by mailing him a check.

Kit can't believe I got his money back. "It's amazing,” he says. “I can't believe I got my money back from Fannie Mae.  Thanks so much to Gary Harper!"

Read entire unedited statement from Fannie Mae.