Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
Anybody have a good rule of thumb for a fannie mae discount (Homepath.com) property if its been on the site over 60 days and is showing as price reduced?
I've seen anything from 82% of list to 90% of list being possible with everyone stating that fannie mae treats every property differently. Just wondering if anybody has had a longer track record with the homepath deals and has a sense of their patterns for these 60 day listings and over ?
Las Vegas, NV · Member since 2012 · 251 posts · 9 votes
13y
Fannie mae is overpricing their homes. Forget about discount with them because they are trying to increase their stock price so the government do not fire them. They have the most expensive property for sale. They also love to send it to auction and have a high open bid then buy it as a REO then finance with their homepath BS finance where they do not have appraisal with high prices.. Not a joke .. Those guys are creating another 2007 / 2008 home crash for the future..
Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes
13y
My experience is they wait 90 days, then send the property off to auction. If you happen to snag it there, you will get a much lower price. Fannie Mae tends to price their properties a little too high I think.
Las Vegas, NV · Member since 2012 · 251 posts · 9 votes
13y
Fannie mae is overpricing their homes. Forget about discount with them because they are trying to increase their stock price so the government do not fire them. They have the most expensive property for sale. They also love to send it to auction and have a high open bid then buy it as a REO then finance with their homepath BS finance where they do not have appraisal with high prices.. Not a joke .. Those guys are creating another 2007 / 2008 home crash for the future..
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
13y
I've been buying FNMA deals for 5 years in a couple different cities, and the only pattern I've seen is that there is no pattern. Unlike HUD properties, there are actual people with actual authority to make decisions when it comes to Homepath properties. This is good and bad -- it's good because sometimes you can get some great deals (like when a property has gone under contract several times and they can't get a buyer to stick), but it's bad because there's no clear way to determine what may or may not get accepted.
I haven't seen any patterns around 60 days, other than price drops -- in my experience, they typically occur between 45-90 days.
Investor · Canton-Akron, OH · Member since 2012 · 917 posts · 477 votes
13y
We get an occasional one, haven't found any big discounts but they seem to keep dropping the price about every thirty days in our area.
Picked one up recently, was on the market for 90 days price drop of 10k about every 30 days. Price had just dropped to 129,000 they accepted offer for 120,000 after a couple counters, contingent on basement inspection after they remove four feet of water. Ended up buying at 114,000., about 50k in renovation. ARV 249,000.
I don't know that I would call it 100k equity, but we will make good money on it. After rehab, cost of money, holding closing selling costs the "equity" will be reduced to a less than half, but a good deal.
The house I referred to had some "serious" issues. House was on the market 90+ days, had dropped in price three times ...with probably 30 realtor cards on the countertop when I first looked at it.
There were water issues, ... this property was a four level split, with four five ft of water standing in the lower level. Neighbors all said it was sitting in a swamp.
We got 24,000 into replacing driveway concrete and diverting cause of swamp, drainage issues.
House still had a very nice kitchen with granite countertops, new roof, new windows, baths we redid master shower and vanity, the other 2 baths we just upgraded hardware, paint, tubs and vanities were good were good. ... house on 2.5 acres.
Picked one up recently, was on the market for 90 days price drop of 10k about every 30 days. Price had just dropped to 129,000 they accepted offer for 120,000 after a couple counters, contingent on basement inspection after they remove four feet of water. Ended up buying at 114,000., about 50k in renovation. ARV 249,000.
We got a very similar one recently as well...
Major basement issues and was able to pick it up for $112,000. Needed $55,000 in renovations (of which, $10,000+ was foundation work) and should resell between $240-260K.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
13y
Yea. I had seen all the comments that a lot of the fannie mae deals were overpriced. I definitely am not asking about how they're priced. It seems they're getting away with being so overpriced because of the financing terms they're offering (3% down, no appraisal, no PMI).
I was just looking to see if they had any kind of reliable patterns on their discounting. i.e. 30 days = 5% off list, 60 days = 15% off list, etc. Apparently not. I'll probably put in an offer at about 82% (thats the lowest number I've seen them accept in my other searches) and see what they come back with.