# Fannie Mae info?



## summerdaze (Jun 11, 2009)

Anyone familiar with Fannie Mae property's and what all that's about? I am very interested in a house in a small town not too far from work, and it's a "Fannie Mae Homepath Property". 
Does that mean it's a cash only deal? Or that it's a total wreck that has to be fixed to be livable? 
I drove there after work and had a look around. I liked it even more after I saw it! It needs some work, but I didn't see anything TOO bad. Nice big (privacy) fenced in back yard, huge deck, 3 car garage, big front porch, 2 Bd 2 baths, air cond, sunny back room with a hot tub. It has white siding on it, and a red "lifetime" roof on it. $46,900 for it.
The town is sorta "Mayberryish" which is alright by me! 
Also, I know it's bank owned, but can you haggle with the price at all, or would they be set on the price with this kind of property?
Thanks for any info you guys!


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## thestartupman (Jul 25, 2010)

I bought a Fannie Mae property in February this year. It makes it easier if you have cash, but it is not necessary. You while need to be bank approved though. The first 15 days the home is on the market, it is only available to someone that is wanting it for their primary residence. After that, it is open to anyone. Most of them i was looking at seemed to hold their price for the first 30 days, then they began dropping the price every 15 days. I offered a lower price on mine, and haggled back and forth, then another offer came in and they asked us to give our best and final offer. The home will be in as is condition. They usually will not make any repairs. They will allow you to have a inspector look at it after they except your offer. Hope this helps.


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## MO_cows (Aug 14, 2010)

We bought one a couple years ago. You can always make a lower offer than what they are asking but no guarantee they will accept it. We offered 15% less than the asking price because it had already been reduced. Ours was a cash sale and they asked for proof we had the money when we put in the offer. Our bank wrote a letter on our behalf. If financed, they would probably give priority to "pre approved" buyers. You can get a home inspection, termite inspection, radon test, etc. at your expense. But generally the property is "as is", they aren't gonna do any work. But if a structural issue or big problem is found, you stand a better chance of getting your earnest money back if you back out.


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## summerdaze (Jun 11, 2009)

Thanks you guys! Also wondering, is it possible to buy a house this way with no money down, or only a little down?


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## po boy (Jul 12, 2010)

The best thing to do is look at the property on Fannie's site. 
You can also read about financing a fannie property etc...

Go here: Fannie Mae REO Homes For Sale - HomePath.com


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## wharton (Oct 9, 2011)

thestartupman said:


> The home will be in as is condition. They usually will not make any repairs. They will allow you to have a inspector look at it after they except your offer. Hope this helps.


It's critical to have a home inspection done. I know of recent, local cases where buyers got a huge reduction in the selling price, as Fannie Mae agreed to "cover" the cost of significant repairs, by deducting the amount directly from the sale price. I get e-mail updates, almost daily, on available properties from FM. I have noted that deals frequently fall through. It's very common to see a property listed as "back on the market, price reduced", a few weeks after it first appears. As for the OP's questions, a lot of info. is available on the FM website. The property you are looking at is being handled by a realtor. They should have all the info. you need. Good luck.


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## NorthCountryWd (Oct 17, 2008)

summerdaze said:


> Thanks you guys! Also wondering, is it possible to buy a house this way with no money down, or only a little down?


Only need 3% down on homepath properties _*IF*_ you're eligible. 

As-is, but allow more inspection than most REOs. Know several people that have bought them and haven't heard a bad experience so far.


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## summerdaze (Jun 11, 2009)

Finaly had a realtor respond to me. She said it's still active, and that I need a pre-approval letter, before I could bid on it. She said she sent an attachment of lenders she knows and vouches for in case I needed it, but I didn't get it for some reason and asked her to resend it. 
I just need to schedule a couple of hours off, b/c I don't get out of work until after the banks close. 
So that's where I'm at, and I appreciate the answers and advice, thanks!


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## Jimbosbaby (Oct 13, 2011)

Our farm was a Fannie Mae property and we bought it January of this year...it was a total nightmare...we had to fight to get them to fix the necessary things in order to live in the home (doors missing, electrical socket covers, mold in the basement, oil furnace serviced and working etc...)...once we moved in, all that they claimed were fixed was done poorly...our oil furnace wouldn't work, had the home warranty folks called out, was told it wasn't covered because it's issues were from neglect (ummm yeah maybe but not from our neglect...we just moved in!) and they quoted us a nice $1300 price tag to get it fixed. Luckily we had a huge wood stove in the basement...we used that for heat and it heated our whole house fairly well. Summer came and the central AC didn't work...so, again same thing...wasn't covered by the warranty so now we have window units to cool the house. Electrical went out on a well pump...again wasn't covered by warranty luckily though my hubby fixed that one himself! While I know the house was "as is" some of this stuff was just crazy and the Home Warranty sold to us by our agent is the worst I've ever dealt with and we bought the biggest package because the house was as is...needless to say...we'll be shopping around for a new Home Warranty company when this one is due to expire.
Our friend just closed on a Fannie Mae property about 8 miles from us...she's only had the house for 7 days, hasn't even moved into it yet and her well pump is dead...she and her agent were told the pump had been replaced...yeah...not...they got the water going just for the inspection and then bam it went out on her...she's fighting right now to get this taken care...even call the housing authority who said Fannie Mae is responsible for replacing the pump since it's only been a short time and they falsely claimed it was replaced...still waiting to see how that one plays out.
If we were to purchase another property (not that we will...I'm never moving again LOL) we would definitely stay away from a Fannie Mae property no matter how good the price is.


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## katydidagain (Jun 11, 2004)

I'm shopping for a cheap foreclosure 700 miles away; I will not see it before purchase but will rely on my agent to check it out. I asked him about Fannie Mae and Freddie Mac listings; he told me what I already knew--they don't do more than list them. 

Find a HUD house if you can because they inspect the property and issue a report. (Granted it doesn't cover termites or structural issues but they do test the electric, plumbing, appliances (if any), the hot water heater (if there), AC (usually missing in my price range) and give an opinion about the roof.) Banks, private sellers and the F peeps don't so it's truly buyer beware with any of them. Get qualified before you waste time looking and make any offer contingent on an inspection report that is satisfactory to you.


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## MO_cows (Aug 14, 2010)

??My dad just bought a foreclosure HUD house and there was NO information provided. He had to get his own inspection.


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## katydidagain (Jun 11, 2004)

MO_cows said:


> ??My dad just bought a foreclosure HUD house and there was NO information provided. He had to get his own inspection.


Every 1 I've looked at had an Addendum page which included a PCR (Property Condition Report) along with other PDFs. Maybe the Feds operate differently in GA but I sincerely doubt it. 

I never said not to have an inspection; I said I'm not planning to do so. I'm not financing so $8K cash is my limit. I fully expect to rewire, replumb, replace the furnace, hot water heater and appliances at the least. (Camping out for a month should be interesting.) A marginal roof reduces the price I'm willing to bid or may stop me from proceeding. I'm relying on my agent, who is an investor, to give me his opinion about structure or any red flags he notes; I'm taking chances I know but getting into Ohio had some risks and getting out will require many more. I still say HUD is your best choice.


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## MO_cows (Aug 14, 2010)

I'm not arguing about it being a good choice, just that we were provided zero information about the property. The price is so good, even if it needs more work than we think going in it will be hard to get burned.

Long distance, sight unseen would be scary, but my cousin moved to Vegas that way and it has worked out all right. Once they fixed the A/C that is, it wasn't working when they got there after a two day cross country drive and it was over 100 when they pulled up.


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## NorthCountryWd (Oct 17, 2008)

katydidagain said:


> Every 1 I've looked at had an Addendum page which included a PCR (Property Condition Report) along with other PDFs. Maybe the Feds operate differently in GA but I sincerely doubt it.


Noticed the level of detail on recent PCRs are quite a bit less comprehensive than they used to be. There was a time they inspected and commented about everything, septic, well, heat, roof, flooring, holes in walls, site improvements, etc. and used to have cost to cure. 

The last few I've seen have a lot of "not inspected" notes on them and very little commentary along with much more CYA disclosures. Considering what HUD pays the inspectors/recovery agents, it's really no surprise.


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## katydidagain (Jun 11, 2004)

NorthCountryWd said:


> Noticed the level of detail on recent PCRs are quite a bit less comprehensive than they used to be. There was a time they inspected and commented about everything, septic, well, heat, roof, flooring, holes in walls, site improvements, etc. and used to have cost to cure.
> 
> The last few I've seen have a lot of "not inspected" notes on them and very little commentary along with much more CYA disclosures. Considering what HUD pays the inspectors/recovery agents, it's really no surprise.


I haven't been following HUD for very long; no PCR I've seen talked about walls or "fixing costs". But it's still more information than you get from other sources except maybe a private seller who, in Ohio, apparently can't sell their property "as is".


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## summerdaze (Jun 11, 2009)

katydidagain said:


> I'm shopping for a cheap foreclosure 700 miles away; I will not see it before purchase but will rely on my agent to check it out. I asked him about Fannie Mae and Freddie Mac listings; he told me what I already knew--they don't do more than list them.
> 
> Find a HUD house if you can because they inspect the property and issue a report. (Granted it doesn't cover termites or structural issues but they do test the electric, plumbing, appliances (if any), the hot water heater (if there), AC (usually missing in my price range) and give an opinion about the roof.) Banks, private sellers and the F peeps don't so it's truly buyer beware with any of them. Get qualified before you waste time looking and make any offer contingent on an inspection report that is satisfactory to you.


Thanks Katy, I had a lender tell me the exact same thing about HUD homes. Said they're safer. Unfortunatley for me, I didn't have any credit. Not bad credit, just NO credit. I've lived "debt free" for over 10 years now, and past mortgages, school loans, etc, have been paid off a long time ago, so didn't help me. The only thing I have on my credit report now, is my car loan, but it's too new to help me. 
They were advising me to get credit cards and whatnot, and I sorta lost interest. Seems to me that they should want a person to NOT be paying on a bunch of stuff so that their money can go on the new house payment. But the opposite is true. If you're not paying on stuff, nobody wants to lend to you! 
I have a decent job and few bills, and I just wanted a modest little home, nothing fancy, but fine, I'll just keep payin' rent I guess. (even though the rent is higher then either of the mortgages on the two homes I've owned in the past) Very discouraging.


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