We are looking at a fannie mae foreclosure. Anyone have any experience buying from fannie mae?
They are very much "as-is" ... you might be able to get an inspection, but they don't fix things.
Expect damage. My SIL bought one and the jerk who lost it carefully sawed partway through some of the pipes with a hacksaw and painted over the cut so it would spray all over when the water was turned on. He filled faucet risers with caulk, P-traps with cement, and disconnected a lot of wiring.
It was a mess to straighten out.
You WILL be able to do a home inspection. And if you find something you do not like, you can terminate the contract and receive your deposit back. If the home has safety issues or is missing appliances or has structural damage, a conventional loan is your only choice... no FHA, VA or USDA financing. Time from contract to close is about 30 - 45 days.
LazyGardens, did your SIL not have a home inspection done.
If you find one on the homepath website then it probably has already been appraised, and you can get a mortgage with only 3% down.
Some properties also qualify for a "renovation mortgage" based on the "as completed" value.
ncrealestateguy ... Yes, she did, and the "inspector" missed all of those little sabotage things because he didn't bother to make sure the water and the power was on, just looked and said, "Yup, it's a house".
She was not happy with him, and neither was the agency.
It ended up being a nice rental, and a very profitable resale, but it was a lot of work to undo the sabotage.
Glad it worked out.
But it is the responsibility of the to - be - purchaser to get the utilities turned on before the inspection takes place.
At least here it is and everywhere else I know of.
OP, most lenders give you a 10 day period to inspect and terminate, so make sure you, the inspector and your agent are on the same page on the timelines.
Thanks, everyone. I live in a small town and think I know all of the issues with the home. I have even been able to check it out pretty close. There has been some broken windows, not much else. I am pretty sure I will be able to get an inspection. We are paying cash and are currently living in our rv so we will get to bid within three days. I just don't know how much to offer. This home should sell for about $90,000.
Ask your agent what they think, and don't be afraid to offer low if you want. I have been shocked to see some of the low final prices on foreclosures.
We viewed a foreclosure over the weekend, and I asked our agent what she thought we should offer.
Asking price $52K, I was thinking $45K, she said with cash, offer $35K
I have sold quite a few Fannie/Freddie and other bank foreclosures as well as several short sales (which I hate) and it has always been the sellers responsibility (in the contract) to make sure water/electric is on and they have never balked at this.
Do an inspection and if there are major issues that come up you can ask for them to be repaired. I have had Fannie replace septic systems, wells, roofs, provide home warranties, and many times credit buyers 3% for buyer prepaid/closing costs.
If you don't ask you will never get. Most of the Fannie foreclosures are listed with 3 different agencies in my area and the listing agents are total professionals and other areas might not be so fortunate.
Most lenders now keep the utilities on during the listing period. Use to be not that way at the turn of the collapse. For the ones that are not connected, it is the buyers responsibility to have them turned on. Sounds like it may be a regional thing. Ask your agent.
The bank turned down an $80,000. bid on a short sale just prior to foreclosure.
Does not matter. Just write up an offer and present it to them.