Fannie Mae REOs
Has anyone here purchase Fannie Mae REOs? Are they willing to discount the price or do they hold out for close to retail?
If they do discount, any tips on making the offer (i.e. percentage of discount, etc.)?
Fannie Mae (I believe those are FHA insured homes, i.e. HUD homes) have REO's for investors, but in my experience, they have been harder to come by. Usually how they do it is they put a house on the market for those interested in buying the home as their primary residence, first. Within this includes money for the estimated repairs. Afterwards, the house has set for a while with no bids, they then open the home to investors. I think like other REOs,if no one bites, they drop the price. Or whoever is the highest bidder within that timeframe.
So far, I havent found a HUD home worth my time, good luck to you.
DeeDee
I was under the impression that Fannie Mae (FNMA) owned homes were different than FHA (HUD) homes. Anyone know if they are different, and if so, can you answer my original questions?
HUD/FHA bidding rules are different from Fannie May.
HUD/FHA bidding rules are different from Fannie May.
Yes, I purchased a FNMA REO. This was a rehab and I did get them to come down on their price a bit. There were some timing issues in that the negotiations were shortened because there were some time constraints with the bank. Having more time might have landed a better deal, however, as is it was very good.
I came in with a low offer and they countered. Their counter turned out to be the contract price.[ Edited by edmeyer on Date 09/22/2004 ]
edmeyer, I was under the impression that Fannie Mae only sold their REO's through real estate agents. Were you able to deal directly with them? If you were, what department or person did you negotiate with. Thanks.
In the past 4 months, I have put in about 10-12 offers on Fannie Mae foreclosures. I have stopped even looking for them. A) They want market price - even for a POS falling down over a hillside B) They have gone into a bidding process (on the last two I put offers in on) C) The real estate agents representing these properties are sometimes more POSs than the properties. D) They will not really deal prior to listing (I had a situation where I knew the owners and they would have waived their rights to take back the property within 90 days - I actually wanted this house for my disabled mother, as it was right in my neighborhood - Nope, no deal. House stayed on the market for months. - what kind of business person refuses cash with no contingencies *close* to market price??) After seeing the recent articles about how the Fannie Mae BOD in 1998 misstated expenses so that they could take huge bonuses, doesnt surprise me that they operate this way. OUR TAX DOLLARS AT WORK.