Anyone ever buy a Fannie Mae foreclosure?

[stephaniee36]

I am interested in a Fannie Mae foreclosure. They listed the property in last fall for a price that is SIGNIFICANTLY higher than the house is worth, considering all of the required repairs. They have, over the course of several months, lowered the price by +75K. The house is still overpriced. I made an offer which was much lower than current asking price, which they rejected. Does anyone know what their formula is to determine the amount to reduce? The formula for determining the price they will accept? I am not trying to 'steal' the house from them. I am looking for a bit of a deal but am NOT being unrealistic about the value of the home in its current condition. Any suggestions, knowledge, etc., is appreciated. Thanks in advance.

[Letj]

The Asset Manager will probably not accept anything lower than 10%. Keep watching, they will keep making strategic reductions and make an offer within 10% when it gets to the price you like.

[stephaniee36]

Thanks for the feedback. I guess I will be waiting a LONG time.

[Letj]

Quote:

Originally Posted by stephaniee36 Thanks for the feedback. I guess I will be waiting a LONG time.

Yes, I have had to wait a long time myself. They reduce every 30 days.

[jfn111]

I sell mainly Freddy Mac Foreclosures. Freddy drops in $10,000 increments, usually. I've had them reject an offer and then two weeks later drop the price lower then the offer they rejected.
Our Gov. in action.

[stephaniee36]

They have been reducing every 30 days by 20K to 30K. I just need them to reduce it 1.5 times to consider my offer.

[stephaniee36]

Update, they have dropped the price once more, by 25K, and rejected my offer once again. I did learn that I am the ONLY person who has made an offer since the house was put on the market last October....guess I have no choice but to wait them out.

[SVHoper]

Hi,

I have had no experience, but listened to a webinar and they said:

Counter offer: ""Net to HUD"" (after commissions)"

• HUD will always accept 85% or 88% net
• Not 86-87% in lower priced markets
• HUD will always accept 91% Net to HUD (CA, AZ, NY etc)

I would be very interested if you are successful. Good luck!

[Letj]

Quote:

Originally Posted by stephaniee36 Update, they have dropped the price once more, by 25K, and rejected my offer once again. I did learn that I am the ONLY person who has made an offer since the house was put on the market last October....guess I have no choice but to wait them out.

They will if it's not within 90% or so of listing; just wait it out but you do run the risk that there will be a lot of competition at an attractive price point unless it's in a war zone.

[stephaniee36]

Update: I got the house! Closed late July, sold my prior home early August. Spent 9K more than I had hoped, but love the house! Let the fun, I mean work, begin. So far, I have installed new hardwood floors, installed some lighting (prior owners took all lighting fixtutes), had the insides of all toilets replaced, installed a sink faucet, minor roof and garage door repair, exterior trim painted, and locks changed. And I have cleaned, and cleaned some more. Much more to come!

[jfn111]

Quote:

Originally Posted by stephaniee36 Update: I got the house! Closed late July, sold my prior home early August. Spent 9K more than I had hoped, but love the house! Let the fun, I mean work, begin. So far, I have installed new hardwood floors, installed some lighting (prior owners took all lighting fixtutes), had the insides of all toilets replaced, installed a sink faucet, minor roof and garage door repair, exterior trim painted, and locks changed. And I have cleaned, and cleaned some more. Much more to come!

Congrats on the house.

[daylatedollarshort]

Quote:

Originally Posted by stephaniee36 Update: I got the house! Closed late July, sold my prior home early August. Spent 9K more than I had hoped, but love the house! Let the fun, I mean work, begin. So far, I have installed new hardwood floors, installed some lighting (prior owners took all lighting fixtutes), had the insides of all toilets replaced, installed a sink faucet, minor roof and garage door repair, exterior trim painted, and locks changed. And I have cleaned, and cleaned some more. Much more to come!

Excellent. Good for you for taking the time to figure out how to buy a foreclosure and have the vision on how to fix it up. It sounds like a good deal.

[stephaniee36]

Thank you. Good deal, possibly a great deal...