Fannie Mae Houses

Hi Donna. We just made an offer on a Fannie Mae owned house, but we aren't expecting much. Their asking price is just below FMV, but this house sounds like it's in about the same condition as the two you are looking at! It is so disgusting inside!! It has a lot of potential, or else we wouldn't be interested, but we will have to put a minimum of $60K to bring it up to being livable!! They have not budged on their asking price since January 2008. We have heard that Fannie Mae and Freddie Mac will rarely even look at low offers, but we thought we'd try anyway. You never know.

I know they try to get people in the homes under their own loan programs but so few people can qualify under the new guidelines. I submitted a break down of repairs and photo's so they could see exactly why my offer is so low with consideration to the fmv. You would think since they are operating with our tax dollars (bailout funds) they would be inclined to get the houses off there books. But then no one ask me if I wanted to bail them out in the first place. HA!!!!! We'll see what they say but I am not holding my breath.
Good Luck on yours.
Donna

That's actually a great idea, sending photos with the breakdown of repairs with your offer. If they respond to our offer with a counter-offer, I think we will copy that idea! I do wonder if they even have any idea of what the property looks like, or if they just look at the paperwork and use comps to set the asking price. Let us know if it works for you!!

Great information guys i would keep pounding away for the deal.
Both of these companys where backed by the goverment before any
bail-outs.They have the greatest invester anybody could ask for
(The american people)

Randy
2birds--------------1stone
MAKE YOUR ACTIONS COUNT

Hello, Donna:
What I have experienced in buying Fanni Mae properties, all they care about is that you buy the house "AS IS". They do not do any repairs no matter what they are. The only STUMP you might have is the bank if you are trying to get a loan. I only had the problem once because the house had mold in it and the bank refused to finance it. Normally, they want you to fix it before you buy it. at that point I just sent in an affidavit stating that I need the repairs done and requesting access. It was not a problem after that.

Hope it helps. Let me know if you need any more info.

Yuri

Yuri,
Have you had much success in purchasing Fannie Mae properties? We have heard that they will not accept low offers. We are interested in several Fannie Mae owned properties that need LOTS of work and have been on the market for over a year. We've decided to go ahead and make offers on them, anyway, and see what happens. We just aren't very hopeful because of what we have heard. We were wondering if you have had success with them.
Thanks,
Kim and Dom

Hi Kim and Dom
Here is the trick with Fannie Mae. I have had about 8 properties purchased through "Fan and Fred". It is better if you give them cash. Generally, they will reject the low-ball offer. For example: If the have a property listed for $100K don't come with $50K offer because they will tell you to go take a hike. However, if you come with $70K all cash and as is, then you might get what you want. Also, make sure you read all the disclosures... IF!!! And that's important!!! They don't list for example that you need a new roof on the house and it turns out you do (new roof generally runs you about 10K), you may request a deduction of about 4-5K and they generally will go for it just to get the house out. There are different tricks I have learned. If you need more info, let me know, too much to type in one shot.

I have a question for you and maybe you can help me out. Do you know where I can get the list of properties for sale for non-payment of taxes? Or even foreclosure lists? Also, which area are you guys from?

Thank you for the information, Yuri. We will definitely keep your info in mind as we make our offers. We are in Southern CA, and we see on your profile that you are in NY. Sorry, but we have no idea where to find a list of properties for sale for non-payment of taxes. We are using a realtor to find foreclosures in our area. We have tried a few different websites (foreclosure.com, etc.), but they all charge a lot of money and I don't think they are very up-to-date. Maybe someone else can offer the both of us some better information!!
Take care and God Bless!

I have a call in to a REA to look at a Fannie Mae property. It is listed at near ARV, but it has EXTENSIVE damage. I would like to actually get a counteroffer when I do put in my offer. Any and all suggestions, tips, tricks, etc to make a Fannie Mae deal happen would be greatly appreciated.

Thanks so much!
Aniko

PS Yuri77, if you are still out there and reading this, please do share your other tricks!

Often times the best way to learn what Fannie and Freddie will take is by working with the listing agents who have large inventories of Fannie and Freddie listed properties.
They have the experience and the relationships with the asset managers and know how to get it done.

If they have a chance at making money on both ends of the deal, (list side / sell side ) you may get all the info you need to successfully be on your way to regularly buying Fannie and Freddie properties.

Just know they have their process and don't really deviate from it. Just because an investor is hot for a property, it really makes little difference to them. They are all about their internal process and whatever ratios they are working under this week.

Happy Investing!
Brad

We have tried buying Fannie Mae properties and they countered with only a few thousand off their full asking price. Three weeks later, the price dropped lower than their counter, but still too high for how much needed to be put into the place. They are looking for asking price and seem to be on a time schedule. After a certain number of weeks/months the price drops a little. We haven't had any luck and have moved on to private sales.

Thanks for all the info guys, I will call my agent to get me to
the person needed to make a deal on a property I have in mind.The
house is not for sale but owned by fannie. Maybe I can make them
a offer to get them to sell it. Is there a set way to approach them.

Thanks Chiller

I am looking at a house that has been foreclosed (on 4/1/10) in Glendale, CA. Can anyone tell me if Fannie Mae will take an offer on a home they have not listed? If so, who do I contact?

Thanks for any info...

Jill