Profile picture for gogetem23

Fannie Mae Foreclosure Question

Recently a foreclosure came on the market asking $107,800. Fannie mae is the seller. We were pre approved for an FHA loan for $100,000 and since fha is 3.5% down we had extra $ for closing and such because we have $11,000-12,000 to put down total and for closing,etc. so lets say we have $111,000 total.Our lender said $106,000 is max we could offer with seller paying 3% closing costs. We put in an offer of $105,000 with seller paying 3% closing costs. The comps around the neighborhood show same house sold for $85,000-$100,000 so I kind of think its a bit high, anyways so we placed our offer yesterday and since they cant review offers until 72 hours after its been listed and today is that day and its saturday then it will be reviewed monday. Well the listing agent said there was one other offer but it was not going to be presented until monday. Do you think that we put in a good offer? What is the history of fannie mae foreclosure sells?
  • September 08 2012 - North Valleys
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Answers (3)

Profile picture for Cindy Quinton
I think it is a good offer and they may accept it. Honestly, though they may counter. If they counter with ANY changes, and you can live with the changes you should accept. The reason I say this is, if there are other bids coming in, and you don't take the counter offer, you will then get a notice to submit your highest and best offer. It will throw you into competition with other buyers.

It is unusual in my area for Homepath properties to be overpriced by the 7 to 20%; they are usually priced low to draw interest if anything. I would really look at those comps again and review how long ago they were sold, and make sure you are comparing apples to apples. You don't want to overpay for a home.
  • September 09 2012
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Fannie Mae would act just like any other prudent seller, evaluating the offer based on appraised value and how much financial sense it makes for them to accept the offer in the market today.

Fannied Mae, even though supported by the fed govt, won't just give away the house if they think they can get more for the house in the prevailing market.

Raheel Shahzad, Attorney, CPA, Real Estate Agent
Lombard, IL
  • September 09 2012
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There is no across the board history or answer for that question.  It is property specific.  I've seen some close near asking and others thousands lower.

If you have an appraisal contingency, which you should with an FHA loan - and the house does not appraise for your offer you are protected.
  • September 09 2012
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