You can use any kind of lender you wish; however, you have only 60 days to close HUD sales, so be sure where you stand with the lender before you go bit. Otherwise, you stand to lose a $500 earnest money deposit on any deal that you don’t close.
This information is subject to change now that HUD has transferred it’s REO function to private contractors. In my area the contractor shut down all sales on 3/7 and hasn’t opened them up, so nobody knows what the new rules are yet.
Fannie Mae does not guarantee that anything in the property works, nor that the property is in good condition. These are REOs, properties recovered from foreclosures. They’ll claim they know nothing about the building or the condition, and the property is sold ‘As is’. They most probably will not look at your offer until you have inspected it at your own expense, and make an informed decision on your offer.
Warning: If you hesitate, someone may steal the deal from you. Make a lowball offer and wait for a counter. Move quickly to compete.
Fannie Mae will require proof that you are pre-qualified for the price you offer, of have bank affidavits if you offer cash.
Millie,
I’ve been told by a broker (a broker I no longer use because of a bad deal) that Fannie Mae will not accept a deal less than $500 of the asking price. Have you found this to be true in your area? This house has been on the market for 3 weeks, so I would think they would accept less.
Hopefully, I’ll get to see the property this weekend if I can get the listing agency to CALL ME BACK!!
I am a newbie at much of this & have what may be considered dumb questions, but hope someone can help me understand what can be done. I have a number of Hud properties I am interested in, which will be available for bid within 10 days. Therefore, I would like to know: Can you use hard money lenders for offers on Fannie Mae or Hud SFH or duplexes? If so, how would I do this? Also, is it possible or not to get afidavids from a hard money lender for making offers on Fannie Mae or Hud SFH or duplexes? I would greatly appreciate any input. Thanks, J.D. [Journey] Swindell