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Old 03-20-2010, 04:44 AM
 
98 posts, read 288,526 times
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Default Fannie Mae "First Look" timeline?

I made a full ask all cash offer on a Fannie Mae home recently (as an owner occupant). My agent got a statement from the listing broker stating that there were multiple bids and I had to put in my best and final offer by 3/12.
The listing was posted on the MLS on 3/03, so the last day for “first look” bidders was 3/18.

A) Why did I have to put in my best and final 1 week before the 15 day period ended?
B) How long will it take for me to get a response from Fannie Mae? (Anyone go through this program? - how long was the response time?)

I’m kicking myself now, because I realize that I should have bid higher as an appraisal will probably not come in higher than the asking price! – Nice loophole that!
I REALLY want this house!
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Old 03-20-2010, 09:42 AM
 
Location: Salem, OR
10,679 posts, read 16,960,411 times
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Quote:
Originally Posted by winknod View Post

I’m kicking myself now, because I realize that I should have bid higher as an appraisal will probably not come in higher than the asking price! – Nice loophole that!
I REALLY want this house!

Why do you think that? It is really, really common with bank properties to price under market to drive up the bidding and get the best terms. If the house is priced at market this might be true, but if it is priced below market then it won't be hard for an appraiser to come up to contract price.
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Old 03-20-2010, 09:59 AM
 
Location: Charlotte, NC
2,187 posts, read 3,028,998 times
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I am currently going through the same thing.
Our home (hopefully our home soon lol) was on the market for 2 days and they 4 offers already on the table. Since there were so many offers I think they just said submit highest and best before the 15 day period. Rather than waiting. I think that 15 day period is really just for owners to get a chance at bidding rather than it getting scooped up by investors.

We put our final offer on Tuesday and we heard back from Fannie Mae Friday evening. They are a little slow to respond, hopefully you'll hear on Monday.

As for the appraisal, you never know what it will appraise for. It just depends on the appraiser. We got two appraisals on our property, they were 65K apart. First one was real low, second was real high. I think the worth of the property is exactly what we are paying for it.

We bid 30K over list price. As our experience with other foreclosures was even bidding OVER list price doesn't guarantee you the property.

When the first appraisal came back low, (it came back 35K less than purchase price) , the bank did drop the price around 18K for us. It's still higher than appraised price. I'm not sure they would have dropped it to the appraised price, as our agent and my husband didn't want to ask for it. (I would have asked for it). But they were scared because the listing agent kept saying they have a cash offer at list price that can close in 8 days.

But whatever happened, we put in our highest that we were willing to pay and what we thought the house was worth. Had it appraised, we would have been fine paying the original price.
If you put in a higher bid and it did appraise, are you willing to pay that?

Anyway, good luck, I hope you get it.
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Old 03-20-2010, 10:26 AM
 
Location: Tempe, Arizona
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Quote:
Originally Posted by winknod View Post
A) Why did I have to put in my best and final 1 week before the 15 day period ended?
As mentioned, the 15 day period is to allow non-investors (owner/occupants) first crack at the home. They do not have to wait all 15 days before accepting an offer, or requesting highest and best.
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Old 03-20-2010, 10:31 AM
 
Location: MID ATLANTIC
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Oh, be careful what you wish for.....that trend, the one where the contract lets's the appraiser determine the final sales price? Well, I have seen it backfire, first hand. Very similar situation, only it was a townhome underpriced at 145K to draw attention. And it did draw them in. My buyer, a single mom, REALLY wanted the place. The Realtor checked the comps and thought 180K was where the value should be......so they offered 190K, just knowing the appraisal would come in low.

Well, let me tell you, when I got the appraisal in at 198K, I called the appraiser, shocked. I had not said one word to him, not one peep about the buyer's stategy. But I had to know if he was "doing me a favor." No, he found the situation amusing....but the value was supported with recent closed sales by an adjoining (and almost identical) development.......one that was difficult to determine where one stopped and the other started. The Realtor didn't get those sales because she limited her search specifically to that legal subdivision.

Just remember, when you gamble, you can lose. My gal was already at the top of her numbers and was now 20K over her maximum qualifying number and could no longer qualify. I recouped her appraisal money and the seller had a new buyer at 195K. But, be sure to look at the payments at your final and best offer and be prepared to pay it before you make that offer.
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Old 03-20-2010, 01:00 PM
 
98 posts, read 288,526 times
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Quote:
Originally Posted by rjrcm View Post
As mentioned, the 15 day period is to allow non-investors (owner/occupants) first crack at the home. They do not have to wait all 15 days before accepting an offer, or requesting highest and best.
Yes, but I was asked for best and last on 3/12, the 15 days ended 3/18.

The property is still listed as active and when I called the selling brokers office to inquire (anon) they offered to show it to me and said that they were still accepting offers. This was after the 15 days had ended.

Isn't Fannie Mae REQUIRED to accept one of the owner-occupant offers made in the first 15 days as long as the asking price is met? On 3/12 there were 4 offers in.

What good does it do to have the first 15 days be for occupants if they keep showing it and accepting offers?
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Old 03-20-2010, 06:22 PM
 
Location: Tempe, Arizona
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Quote:
Originally Posted by winknod View Post
Yes, but I was asked for best and last on 3/12, the 15 days ended 3/18.

OK, I understand your concern.

The property is still listed as active and when I called the selling brokers office to inquire (anon) they offered to show it to me and said that they were still accepting offers. This was after the 15 days had ended.

Isn't Fannie Mae REQUIRED to accept one of the owner-occupant offers made in the first 15 days as long as the asking price is met? On 3/12 there were 4 offers in.

No. And they may still be reviewing the offers or waiting for more to come in. Banks work on their own timeline. This is just a policy that Fannie Mae instituted on their own to give owner/occupants a "First Look" opportunity, but no guarantee that those offers would be selected.

What good does it do to have the first 15 days be for occupants if they keep showing it and accepting offers?

All the 15 day policy says is they won't sell to investors until after 15 days. Don't read more into it.
See above.
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Old 03-22-2010, 06:28 AM
 
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"All the 15 day policy says is they won't sell to investors until after 15 days. Don't read more into it."

So since the property is still on the market an investor can still come in and out bid me? You are saying that Fannie Mae "First Look" only offers owner occupants first dibs on bidding, not on actually purchasing?
As I said, my offer was full ask, all cash and came in in the first 15 days so, unless they got a higher offer from an owner occupant, it would be unethical for them to reject it and wait for a higher bid from an investor. When I say "unethical" I mean that this "first look" program would be a sham and means nothing to those of us actually looking for a home to live in.

It really sucks to be a buyer right now.
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Old 03-22-2010, 06:41 AM
 
Location: Charlotte, NC
2,187 posts, read 3,028,998 times
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Quote:
Originally Posted by winknod View Post
"All the 15 day policy says is they won't sell to investors until after 15 days. Don't read more into it."

So since the property is still on the market an investor can still come in and out bid me? You are saying that Fannie Mae "First Look" only offers owner occupants first dibs on bidding, not on actually purchasing?
As I said, my offer was full ask, all cash and came in in the first 15 days so, unless they got a higher offer from an owner occupant, it would be unethical for them to reject it and wait for a higher bid from an investor. When I say "unethical" I mean that this "first look" program would be a sham and means nothing to those of us actually looking for a home to live in.

It really sucks to be a buyer right now.
Just be patient, Fannie Mae is just really slow in responding. They probably are busy working on my property because it's such a mess. LOL.
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Old 03-22-2010, 07:40 AM
 
98 posts, read 288,526 times
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Thanks sheenie2000!
Good luck on your closing and I hope you'll be enjoying your new home soon!
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