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Old 04-04-2009, 07:54 AM
 
Location: Minnysoda
4,953 posts, read 4,161,323 times
Reputation: 2198
Default Buying from Fannie Mae

Anybody ever buy a repo from Fannie Mae? I made an offer which they countered and I have re countered. Their counter came with about 10 pages of legalese crap. I intend to have the company mouthpiece review it on Monday but wanted to see if other folks had experience buying from these clowns??
Thanks
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Old 04-04-2009, 08:12 AM
 
Location: Elkhart, IN
305 posts, read 569,671 times
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Quote:
Originally Posted by my54ford View Post
Anybody ever buy a repo from Fannie Mae? I made an offer which they countered and I have re countered. Their counter came with about 10 pages of legalese crap. I intend to have the company mouthpiece review it on Monday but wanted to see if other folks had experience buying from these clowns??
Thanks
Did you offer way below what they were asking for the home? Usually they dont play the counter offer game. Last week a client of mine offered $1000 less than asking price and also we asked they cover the seller portion of the closing cost fees (title search, prep fees, etc). They countered back, asking us to pay $500 more. Thats it...we have a deal, and will close in May.

On all repos and short sales, the bank/financing institution is already taking it on the chin and the price is less than what was owed and lets not even talk about the $/time they spent to get it back on the market. I am not sympathetic to them, they often cant get out of their own way, but people see an REO and think they can buy it for way less than list price and that usually doesnt happen. And yes, the additional paperwork, in addition to a standard purchase contract is usually required(its the government,what did you expect?). Good luck with it!
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Old 04-04-2009, 08:20 AM
 
Location: Salem, OR
10,674 posts, read 16,960,411 times
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I had a good experience with Fannie and my client purchased a property from them about $20k less than asking.

It does not matter what REO you buy from, you will get an 8-15 page addendum releasing the bank from any liability on the property. That is pretty standard.
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Old 04-04-2009, 09:17 AM
 
Location: Minnysoda
4,953 posts, read 4,161,323 times
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Thanks for the replys,
Yes I did offer well below asking (119,000 offered 80,000) They countered with 110 I went back with 85. I'd like to get them under 100k as this a investment/second/vacation home. The place has been on the market for over a year and a half now and I would think they would want out of it. I was just unsure of all the paperwork. It seems to say that I'm buying as is but it also says that If it fails an inspection I pay for I can get out of it.....
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Old 04-04-2009, 09:54 AM
 
Location: Salem, OR
10,674 posts, read 16,960,411 times
Reputation: 6518
Most typically have the right to inspect and get out. I've never seen one without it. Really the bank just spells out in 499 different ways about how you are giving up any rights to sue the lender over the property.

They also tend to have delayed closing fees. So if you delay closing they often charge $100 a day for being late. Make sure you give your lender ample time to close. I had clients that used a slow lender (not recommended by me) and I was livid with them because they delayed closing by two days. It was amazing how much faster they worked when I reminded them about the late fees being incurred by the buyer...The mortgage broker ate the almost $300 in late fees acquired by the buyers for not closing on time.

Read the fine print.
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Old 04-04-2009, 10:57 AM
 
Location: Minnysoda
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Yes I see the 100 per diem if late to close. I'm useing Wells Fargo and they say they only need a week....Hopefully we can get it negiotiated...........
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Old 04-05-2009, 07:54 PM
 
Location: Columbia, SC
6,898 posts, read 10,197,554 times
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Isn't that addendum a bear? 13 pages, wrote one up this weekend.
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Old 04-08-2009, 09:07 AM
 
Location: Minnysoda
4,953 posts, read 4,161,323 times
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Do you think Fannie will pay closeing cost?????
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Old 04-25-2010, 08:55 AM
 
1 posts, read 18,205 times
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The government needs to get out of the real estate business!!!! I tried to buy a home at sheriff auction that needs a TON of work. Pretty much needs the entire inside re-finished, tear down and new garage and exterior painted. The only thing that does not need done is new roof and windows. House is worth $150K move in condition. Offered up to $90K at auction but Fannie Mae wanted it back so they out bid me. House has since come on the market starting at $130K, now down to $105K. Nobody is biting and now I'm not interested cause after looking at it again, it probably needs $75k in work. They are clueless! They believe no matter what condition the property is in that it is worth the going rate for that type of house(say 3 bdrm 2 bath, etc.).

Also bid on a house that they have listed on Homepath for $265K, reduced to $255K. Comps in the area sold at $228K!!!!! What are they thinking. Once again, completely dated, needs new roof, water damage/mold in basement, new siding, windows, landscaping, HVAC, Kitchen and baths if it is to ever be resold. Offered them $165K, they came back at $253K!! Funny! Some bean counter is sitting behind a desk making these decisions. They have no idea what condition the house is in........ Funny! Good Luck. I'm building a brand new house with 500 more sq ft and decked out for $300K. These houses will sit and rout. Congratulations America, you are now the proud owner of a few million homes that could of been purchased by the public.
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Old 04-25-2010, 11:08 AM
 
Location: Madison, AL
1,878 posts, read 1,567,074 times
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I just got a client under contract with Fannie Mae, and our addendums are 14 pages, with a notorized indemnity agreement. Last year I sold a Fannie Mae, and it was the same (aside from the indemnity agreement having to be notorized). To be honest, their addendums are MUCH better than most bank addendums.

I always address the per diem with an addedum stating that the purchaser will only be responsible for per diem if they have lack diligence in pursuing their mortgage. That wording in the addendum is "vague" in my opinion and leaves the purchaser open to per diem charges for circumstances that could be out of their control (such as a title issue).

And yes, Fannie Mae will pay closing costs just as any other seller. It is all negotiated as part of the contract to purchase.

Fannie Mae has always been great to work with in my experiences. We have always gotten them to do some reasonable repairs, and they indemnify the property for the buyer up to the sales price, relieving the buyer of having to purchase an expensive indemnity bond. They have always been very negotiable as well. This house is under contract for 87% of its list price, and it has only been on the market about 1 1/2 weeks. That is pretty good for our area, as homes here are selling for around 97% of list on average.
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