I made an offer on a short sale two flat in Chicago. After a few months, I have just received a counter-offer. The counter offer came from "Fannie Mae Homepath Short Sales". Is there any special financing available for investors purchasing a short sale where the lender is Fannie Mae Homepath Short Sales, such as less money down, etc.? Any insight into my financing options would be greatly appreciated.
Sorry, one more question for the community. What are people's experience with Fannie Mae Homepath Short Sales after they make a counter-offer? So I offered $90k and they countered with $105k. Do they negotiate from there, or is that going to be their final number? If they do negotiate, how much do you think they'll move off that number?
Not Homepath from my experience. I lowballed them they came back with an offer less than $1k of their original price, this put a $5k spread between both offers so I added $2,500 to mine and they accepted.
@Mark Doyle Home Path will negotiate more. Keep in mind, that on the Home Path side, there is a person like you. Some will move fast, some not. Also, Home Path will inform you most of the time if there are multiple offers, however not always. Respond fast, as the counter is good for only 24 hours and I've been in the situation where the negotiator has changed his mind and went back on their counter.
Thanks @Lumi Ispas . There are no other offers. I put it under contract the day it was listed, and they removed the listing the next day. Also, the email I got says I have one week to respond. Why do you believe it is 24 hours?
Mark just curious how much lower than what was the advertised price was your offer? I promise based off of your numbers I am not looking at the same property.
@Lumi Ispas or anyone who has done a homepath property. How long after you make your offer do they let you know other offers are on the table?
How long did it take for you to close your deal?
I think it was listed for $115k or $120k. I don't recall. @Patrick Bawer
@Mark Doyle & @Patrick Bawer
It all depends. Sometimes they reply right away, and sometimes they take time. The first 15 days the property is open for bids only from owner occupants. After the first 15 days, if no offer was received or approved, the bank is going to look at investor offers.
Fannie is a governmental agency and their employees are not working weekends and holidays. Also, depending on their personal beliefs, they will use the guidelines they have for negotiations and either answer right away if the property has been long on the market with no offer or move very slow if the property is been little exposed to the market.
I've closed a lot of deals with Home Path and I am negotiating a deal right now for an owner occupant client.
They will look at 45 days for financing and about 3 weeks for cash deals. They like having 10% Earnest Money on cash deals and even when financing deals, the higher the earnest money the buyer offers, the higher the chances of making a deal.
Hope this helps! Good luck to you guys!
I have one right now with Freddie. Highest and Best was due last Wed, they accepted Thu, my out of state clients delivered EM Mon and we still don't have a signed contract back. Plus they countered with a 8 week closing timeline to accommodate the slow process.
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