Homepath bid and buying process

23 Replies

Hi all,

Has anyone ever bid and acquired a property on Home Path? The 10% down is a very attractive offer along with no PMI. The bid price seems to be pretty attractive compared to the value giving what appears to be a reasonable discount. The one downside is that the DTI looks to be capped at around 36% which is lower than the 41% for conventional loans on loans with less than 80% LTV.

Anyways, just wanted to get some feedback from anybody that has made a purchase with this route.

Have a great day.

I just purchased my first homepath house (close on March 28) and I expect to make over $270 per month (using the SFH deal analyzer). It took longer than expected but I did in fact put only 10% down and got it at 30 year fix at 6.1% APR

Homepath is a great way for investors to go with the right house!

I've done several home path homes. Never used financing tho. All cash.

write up the contracts. Submit everything online then wait usually about 3 days. They will either counter or tell you your in multiples and to submit your highest and best. Wait a few more days and repeat until an offer is accepted.

I have completed three deals with HomePath financing. You should talk to a lender to get you prequalified if you are worried about the lower DTI. 10% down with slightly higher but reasonable interest rates.

As a realtor can you see the existing offers in Homepath.com so you know if your offer has been successfully submitted and if there are any other existing offers?

@James Wise

What is FNMA process when offers have been submitted? I submitted one last week and got the multiple offers "highest and best" email from Home Path. I selected the resubmit with no revisions. Then I got a "rejected" email after the "highest and best" time limit. I understand that FNMA is probably negotiating one of the other offers, but would they send a "rejected" if this is the case? Do they counter all offers if not in a multiple situation or do you have to be close (like HUD) for them to counter. I have done several HUDS but just now venturing into FNMAs.

@Sam Leon

My wife is a Realtor. Where and how can you see the existing offers in Homepath.com?

Thanks...

There is a chance you were rejected because your $$ amount did not change when you resubmitted highest and best. I think you can see how many made offers but not the $$$ amount Homepath will not let you see that.

Joe Gore

Originally posted by @Randy King :
@James Wise

What is FNMA process when offers have been submitted? I submitted one last week and got the multiple offers "highest and best" email from Home Path. I selected the resubmit with no revisions. Then I got a "rejected" email after the "highest and best" time limit. I understand that FNMA is probably negotiating one of the other offers, but would they send a "rejected" if this is the case? Do they counter all offers if not in a multiple situation or do you have to be close (like HUD) for them to counter. I have done several HUDS but just now venturing into FNMAs.

@Sam Leon

My wife is a Realtor. Where and how can you see the existing offers in Homepath.com?

Thanks...

They sent the highest and best email to everyone with an offer in. Then everyone sent in their highest and best. They chose the best offer and sent rejection letters to everyone else. (yourself included)

Originally posted by @James Wise :
Originally posted by @Randy King :
@James Wise
What is FNMA process when offers have been submitted? I submitted one last week and got the multiple offers "highest and best" email from Home Path. I selected the resubmit with no revisions. Then I got a "rejected" email after the "highest and best" time limit. I understand that FNMA is probably negotiating one of the other offers, but would they send a "rejected" if this is the case? Do they counter all offers if not in a multiple situation or do you have to be close (like HUD) for them to counter. I have done several HUDS but just now venturing into FNMAs.

@Sam Leon

My wife is a Realtor. Where and how can you see the existing offers in Homepath.com?

Thanks...

They sent the highest and best email to everyone with an offer in. Then everyone sent in their highest and best. They chose the best offer and sent rejection letters to everyone else. (yourself included)

You think its better to offer cash or to attempt owner occupant since that is the " goal" of the program. Seems they prefer to sale to O/O if comparable offers. I can live this home for a year no problem.

Originally posted by @Aaron Nordgren :
Originally posted by @James Wise:
Originally posted by @Randy King :
@James Wise
What is FNMA process when offers have been submitted? I submitted one last week and got the multiple offers "highest and best" email from Home Path. I selected the resubmit with no revisions. Then I got a "rejected" email after the "highest and best" time limit. I understand that FNMA is probably negotiating one of the other offers, but would they send a "rejected" if this is the case? Do they counter all offers if not in a multiple situation or do you have to be close (like HUD) for them to counter. I have done several HUDS but just now venturing into FNMAs.
@Sam Leon

My wife is a Realtor. Where and how can you see the existing offers in Homepath.com?

Thanks...

They sent the highest and best email to everyone with an offer in. Then everyone sent in their highest and best. They chose the best offer and sent rejection letters to everyone else. (yourself included)

You think its better to offer cash or to attempt owner occupant since that is the " goal" of the program. Seems they prefer to sale to O/O if comparable offers. I can live this home for a year no problem.

There is a 20 day period where only OO can bid. That is your best shot. Once its open to everyone cash is king.

Originally posted by @Randy King King:

@Sam Leon
My wife is a Realtor. Where and how can you see the existing offers in Homepath.com?

Thanks...

@Randy King I am not aware what you can or cannot see on homepath. I am not a realtor and thus I rely on the listing agent to submit my offers, more often than not I don't hear ANYTHING at all. If my offer is rejected typically I won't even hear about the rejection unless I call to find out what was happening. Right now I have one offer in that's 91% of asking price and FNMA has rejected it once, next time I resumbitted they countered with $1000 below the listing price, I resumbitted that as my best and highest and no news and I fully expect them to reject. LA has a request to lower the price but so far no reply on that either. Would be nice to be able to see on Homepath what offers are in - not the prices and terms just how many offers.

Originally posted by @Aaron Nordgren :You think its better to offer cash or to attempt owner occupant since that is the " goal" of the program. Seems they prefer to sale to O/O if comparable offers. I can live this home for a year no problem.

I think as OO you get preferential treatment.

I had a deal where I had an cash offer waiting to be submitted. LA told me they have an OO offer but pending financing, and HOA has requested a $35K repair escrow from the new buyer to make sure needed repair can be done and they know the buyer can't make the 35K escrow yet FNMA accepted their offer, 2 months later the deal fell apart they don't have the 35K escrow and back on the market FNMA took another OO with shaky financing...I was told by LA that FNMA even tried to help structure the loan (I guess it was a homepath loan) to include the escrow for the previous buyer. I didn't know FNMA would do stuff like that.

@Sam Leon Curios, it's a FNMA owned property. The HOA sounds like they are over stepping their powers. I know the HOA has the right to approve/deny potential owners. But generally this is a set list of criteria (criminal/credit background, etc). I've never seen them be able to require a buyer have a set amount of repair funds, but I guess it might be allowed. I also don't see how a lender would approve the for financing if it needs that much work, unless is was some type of purchase/renovation loan. What kind of damage is there..... water damage, fire?

Great thread I'm going through this process right now. One more question who controls the "multiple offers" email is it home path or the listing agent? The listing agent we are dealing with is know to be shady. If he were the one controlling that wouldn't ha have a lot to gain be always sending that email. Especially on lowball offers?

Originally posted by @Sam Leon :

As a realtor can you see the existing offers in Homepath.com so you know if your offer has been successfully submitted and if there are any other existing offers?

 Sam, how are you able to see them. I'm a realtor and sometimes bid on Homepath homes for owner occupants.  Thanks Clay

Originally posted by @Clay Daughtry :
Originally posted by @Sam Leon:

As a realtor can you see the existing offers in Homepath.com so you know if your offer has been successfully submitted and if there are any other existing offers?

 Sam, how are you able to see them. I'm a realtor and sometimes bid on Homepath homes for owner occupants.  Thanks Clay

Clay, I didn't say I could see them,  I assume a realtor most likely the listing agent can see them all?  Because one time I submitted an offer to the listing agent directly and I got a call back saying "Sam, there are four other offers and now they are asking everyone for the best and highest, so if you really want it the highest offer is now 156K..." so that agent must have access to see everything and know who's the highest.

Sam, every time I bid on one for a client, they always have multiple offers. They will tell you to submit your best offer after your initial offer . Sometimes the listing agent will tell you how many offers they have and some won'\t.  Thanks Clay

Originally posted by @John Powell :

Great thread I'm going through this process right now. One more question who controls the "multiple offers" email is it home path or the listing agent? The listing agent we are dealing with is know to be shady. If he were the one controlling that wouldn't ha have a lot to gain be always sending that email. Especially on lowball offers?

 I'm going throught that now. The listing agent on the property we are trying to buy is known to be shady as well. I called FannieMae to get answers on how many bids are on the property. They call it 'Proprietary information' and they will not release that. That information should be transparent. They dont have to release names but they should infact release bids. The listing agent is not held accountable if they have no checks and balances system for them. They could make anything they would like up just to get a higher comission. Does anyone have information on how to obtain the number of bids etc?

Doesn't matter how many bids. And your bid goes straight to fannie, not the agent, if you're bidding online. I've found the Fannie REO agents to be much "straighter" than many bank REO agents.

I've had some good fortune buy bidding through homepath.  I just go in low and fight- the last one i purchased took about a month of haggling but i bought it for 10k- half of list price!  Always cash as-is deals.

I can offer more experience now that I have closed two hud homes and almost closed a third. The two that I closed were with Matt Martin who is a HUD property manager and asset manager the other was pemco. My wife is an agent and was never able to see number multiple bids. I bought one as an owner occupant and the other as an investor. Neither time did I get a multiple offer situation but on the investor one we bid probably 5 times before we got the house. The min net to HUD was disclosed with every non winning bid I have submitted. Pemco sent me an email saying multiple offers each time I submitted a bid after a net to HUD amount was given. I do not believe this is true because I won a bid got althe way to the day before closing then backed out and lost my EMD. The property is still on the market today. So it seems to matter who the HUD servicing company is.

I am also in the process of trying to buy a Homepath home. The same day we made and offer the listing went down $20k. But our offer was already in.  We offered a way below that offer.  We were the only ones making an offer prior to the lower price.  The agent told me that she got several calls for showing by other agencies that next day.  Now they have an incentive attached to the listing for agents.  We got a counter offer $1k below new listing price and we countered their off but found out that someone in that same office also put in an offer.  Here's the catch, the house was suppose to go to auction today and we have not heard anything and I have not been able to find it on any of the auction sites.  So has anyone ever experienced that it would be going to auction by a deadline, but it not really go or since it has offers on the table, that it will be delayed?  

I just submitted an offer last week on a Homepath property. Then I got the "highest and best" response and re-submitted a new offer. I'm trying to be owner-occupant, so I hope that helps me win the bid!

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