Investor · NY · Member since 2014 · 74 posts · 49 votes
I've been looking into buying a Homepath property and I've noticed that a few I've been watching that were "coming soon" end up disappearing from the Homepath website before actually being listed. Are the properties actually owned by Fannie Mae while the status is "coming soon" or are they in the process of foreclosing? Are there ways to make a deal on the coming soon properties before they're actually listed? There's one right now I'm very interested in and if there's a way to make a deal before it's listed I'd love to know.
Hello, I am a Fannie Mae Broker on Long Island. The bank lists them as coming soon when they are a few weeks away from actually listing them. Normally during this period they are coming up with a list price. At this time they have already owned the property for quite some time. Unfortunately , you definitely can't make a deal with them before it's listed. It doesn't work that way. There are 100 people like you licking their lips as well; the bank wants the most they can possibly get and will allow it to be seen by everyone which is why they created homepath.
Also, every homepath property has a "21 day first look period" where the bank will not entertain offers from investors. The property is only opened up to an investor if it doesn't first sell to an end user within the first 21 days. Any investor offers will be immediately rejected until day 22.
Keep your eye on it. Also, if it disappears after "coming soon" that means the bank has to back track and take some additional steps before marketing it. They could be clearing title, doing repairs, etc. But they definitely didn't sell it.
Hello, I am a Fannie Mae Broker on Long Island. The bank lists them as coming soon when they are a few weeks away from actually listing them. Normally during this period they are coming up with a list price. At this time they have already owned the property for quite some time. Unfortunately , you definitely can't make a deal with them before it's listed. It doesn't work that way. There are 100 people like you licking their lips as well; the bank wants the most they can possibly get and will allow it to be seen by everyone which is why they created homepath.
Also, every homepath property has a "21 day first look period" where the bank will not entertain offers from investors. The property is only opened up to an investor if it doesn't first sell to an end user within the first 21 days. Any investor offers will be immediately rejected until day 22.
Keep your eye on it. Also, if it disappears after "coming soon" that means the bank has to back track and take some additional steps before marketing it. They could be clearing title, doing repairs, etc. But they definitely didn't sell it.
@Account Closed Are you looking to owner occupy the property or buy it as a non-owner occupant? Fannie Mae Homepath properties have a 20-day first look period for owner occupants. So even if it goes on the active market you will not be able to bid as an investor until the 21st day anyway.
If you are going to owner occupy, I would reach out to whoever the Fannie listing agent is in your area and see if they have any info on when it will be listed. It's not likely you will get a response or a concrete response to your inquiry, but it is worth an ask.
Thanks @Michael Sessa! Do you know if Fannie Mae will accept a lower offer for a cash buyer owner occupant vs financing owner occupant or are they just looking to get top dollar regardless?
@Michael Noto it's a multifamily I will be owner occupying. I know all about the first look period so I'm hoping since it appears to be a total gut job from the drive by I did that competition with other owner occupants will be limited. It has boarded up windows, graffiti on the outside and a seriously overgrown yard.
They prefer to sell homes to end users believe it or not, but ultimately they will counter highest and best to all parties involved. Most times I would say the highest number wins, investor or end user.
@Account Closed They prefer to sell homes to end users believe it or not, but ultimately they will counter highest and best to all parties involved. Most times I would say the highest number wins, investor or end user.
If I'm not mistaken (at least in my experience) these homes usually have a "do not flip" provision in the closing agreement as well where you cannot sell the home OR ACQUIRE A LOAN AGAINST THE HOME (think hard money or 2nd mortgage for repairs/flips) for at least 90 days after the date the title is recorded with the County.
I'm not flipping it (unless you consider selling in 2 years a flip). I'm planning on renovating as quickly as possible and living in one of the units for 2 years so I'm eligible for the $250k capital gains exclusion. Financing would be either a homepath/fha renovation loan or hard money loan from a family member and pay for the reno out of pocket before refinancing in a few months.
Fannie Mae properties are sold with 90 day deed restrictions that say you can not resell or place a mortgage on the property for more than 120% of purchase price, in the first 90 days.
If you buy for $100,000, days 1-90 you can sell for up to $119,000, or place a mortgage for up to $119,000. Day 91 you can do whatever you'd like.
Fannie Mae properties are sold with 90 day deed restrictions that say you can not resell or place a mortgage on the property for more than 120% of purchase price, in the first 90 days.
If you buy for $100,000, days 1-90 you can sell for up to $119,000, or place a mortgage for up to $119,000. Day 91 you can do whatever you'd like.
I understand - and I was pointing that out to the OP.
Sadly, in my case, I paid $4,000 for a HomePath Home with the intention of getting a loan to fix it up and rent it. That 120% doesn't do much for you when you buy a home for $4,000 :)
But it's not anti-flip if you want to buy it and sell it for less than $119,000 in under 90 days. Also, even if you rehabbed it in 30 days, you put it on the market for $200,000 and had it under contract in one day, you would simply need a 60-day close. So it's really not all that anti-flip. You can't take something for $100,000 and sell it for $200,000 the next day, sure, but the odds of that are slim to none.