Wholesaler · Kansas City, MO · Member since 2017 · 16 posts · 1 vote
First and foremost, thank you in advance for any advice on this. I have my eye on a duplex that is currently owned by Fannie Mae. I have a couple questions on how this differs from a normal transaction highlighted below. I appreciate you taking the time to help a rookie build his mini-empire. :)
- Is price flexibility the same as a normal transaction or are is the seller usually more hard/soft on list price
- I would like to move fast with an offer on this once investors offers are opened. can I begin researching title now before I am officially in negotiations
- Are there any rules of thumb or advice on some of the nuances of buying REO from Fannie?
Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes
8y
I've bought many Fannie Mae houses and found that they are more flexible on pricing for the ones approaching 90 days on the market. No reason to worry about title as they will provide a title commitment and convey the property with title insurance. (Of course, read the title commitment or have someone experienced help you through this.)
I believe it is still true that you must hold the property for 90 days. It's been a while since I bought one. However, the houses I bought took at least 90 days to fix, market, sell and close, so that wasn't too big a deal for me.
Once the offer is made, and accepted, you can not assign the contract. The name on the purchase agreement must be the name that will be on title, filed in the county.
I've bought many Fannie Mae houses and found that they are more flexible on pricing for the ones approaching 90 days on the market. No reason to worry about title as they will provide a title commitment and convey the property with title insurance. (Of course, read the title commitment or have someone experienced help you through this.)
I believe it is still true that you must hold the property for 90 days. It's been a while since I bought one. However, the houses I bought took at least 90 days to fix, market, sell and close, so that wasn't too big a deal for me.
Once the offer is made, and accepted, you can not assign the contract. The name on the purchase agreement must be the name that will be on title, filed in the county.
I hope this helps!
Jean,
Thank you for taking the time to read and reply. This helps a lot.
I'm not concerned about the 90 day holding period as I am more interested in rehabbing and renting.
This particular property was just listed, but we'll see if they are willing to play ball. The numbers have to make sense on my end.
i am in the process of signing a contract for a HomePath Fannie Mae house. I'm an investor and they accepted my offer once the investor period was opened. The house needs a FULL remodel and lots of issues with it, code violations, etc.... Has anyone had experience or suggestions for taking advantage of the Inspection period to renogiotiate with the seller (Fannie) to cover some of the issues? Are they flexible at all or an i risking them pulling the contract and reopening the house? The Purchase Addendum says we have 10 days to inspect but after closing it is considered As-is.