FannieMae Foreclosures - Posted by Mark(MI)


#1

Posted by Carol on December 07, 1998 at 17:10:26:

We picked up a Fannie Mae triplex which had started out at 69k, and by the time we became interested was already to 67 or 65k. We went in at 47 or 49k . They countered at 52k and we settled on 50k I believe. As is appraisal was 63k, and in Jan we will cash out refi based on an appraisal which should be (based on income) about $75-76k.
This was thru a local listing broker - deal brought to us by another broker with whom we have looked at some deals - though hadnt done any. He was VERY helpful in crafting the offer acceptable to Fannie and to ourselves.
He is also an investor … guess that tells you something.
Give it a fling!
Carol


#2

FannieMae Foreclosures - Posted by Mark(MI)

Posted by Mark(MI) on December 07, 1998 at 13:20:30:

Has anyone had any experience dealing with FannieMae foreclosures? Good, Bad or what? Thanks in advance…


#3

Re: FannieMae Foreclosures - Posted by BR

Posted by BR on December 07, 1998 at 17:55:24:

Submitted offer on Fannie Mae foreclosure last year. Had to chase the listing realtor for three days before being told that I needed a statement from my bank showing I had funds available. After submitting that, it took another 3 days for him to tell me that another offer had been accepted. The strange part was that I was in the realtor’s office when he called and submitted my offer and it was accepted. Called the main office and was told that two offers were submitted by the same realtor at the same time and they accepted the other offer. I didn’t fight it, I just let it go.

I had a different realtor run a list of available properties 2 wks. ago and saw this same home listed for sale. Looks like they’re going to make a profit of at least 35k.

Was there something fishy going on here…I think so.

I guess this goes with the territory.


#4

Re: FannieMae Foreclosures - Posted by Jimbob

Posted by Jimbob on December 07, 1998 at 16:16:24:

Mark,

FNMA foreclosures can be good and bad, mostly depending on market pressures in your area. I’ve seen the bank not take a penny less than market value because the housing market was hot, on the other hand, I’ve seen them take whatever offer is presented to them because the market was terrible. They’re thinking in a hot market is “why should we take anything less than market value when there are so many buyers out there?” and just the opposite when the market is bad for sellers.

One other obstacle is whether or not you can get to the house before the real estate agents do, if not, then you have to deal with not only the banks mentality but the agents mentality also, two strikes against you. Agents have two agendas against you as an investor, one to maximize the sale price to impress the bank fopr future business, and two, the higher the sales price, the more commission they make.

Generally speaking, dealing with FNMA foreclosures are a lot better than with FHA or VA foreclosures. The best approach when you find one (FNMA) is to make an offer based on what you feel is beneficial to you, see what they say when they counter offer and if it’s within reason, keep countering until you reach an agreement.

Jimbob


#5

Re: FannieMae Foreclosures - Posted by Richard

Posted by Richard on December 08, 1998 at 23:14:22:

Something fishy? Sounds like the full time fisherman
got the fish!


#6

Re: FannieMae Foreclosures - Posted by Mark(MI)

Posted by Mark(MI) on December 07, 1998 at 16:31:14:

Thanks Jimbob,

Unfortunately it was listed with a realtor just last Friday. They haven’t even listed a price as of yet. They say that they have to get an appraisaland have it cleaned up. I’m sure this house would be a potential profit considering the area it’s in and the lot size (Big Lot) if the price was right. Thanks again…