Making bids with Homepath

6 Replies

I've read many threads here and listened to some of the podcast, read the Beginners guide but I'm still confused on how to wholesale a property acquired from HUD and/or FNMA.

Can someone please tell me if I can

1. wholesale a FNMA winning bid? (assign the contract)

2. if so, when?

3. Is the price to the end buyer contingent on the waiting period? (90 days)

4. I read today that FNMA only needs 5% down (from Homepath website) if I were to finance the deal.

This question is FNMA specific. I found a home that according to neighbors has been vacant for close to 3 years. It is a FNMA Homepath property. When I called the listing agent she said the property was back on the market. Has been so since April 8th but overall on the market for 236 days. The original asking price was 149,900 and today it is $91,900. Property needs quite a bit of work including roof. Its in a neighborhood where I can easily get $62-65 pr sqft. Property has 2360. Even if ARV was $60 per sqft that gets me at $141,600 * .7 = $99,120. Havent had a chance to really look at repair cost but just an estimate of $20-$30k makes any offer I would make a lot lower than current asking price.

Know there's a lot here but,

I need some suggestions on how to proceed? Should I even bother?

No, you can not assign FNMA, HUD, or almost any other REO contract. You'll need an FHA 203k (owner occupant only)or Homepath purchase/renovation loan due to the property condition. Also, $/sf don't work if the property is larger than the surrounding homes/comps.

its actually on par with the neighborhood. I'm looking at selling for less than what others are selling for.

There's a deed restriction not allowing you sell it for a certain amount of $ above what you paid for it for 90 days.

@James Wise That's what I have read. 20% I believe. I saw this from one of @J Scott post. Does this mean I can sell during the 90 day period for less than that?

Also, how is this structured? Do I purchase the property from FNMA then sell or is it a case where I put up the down payment, get under contract then wait the 90 days?

Originally posted by @Wes Brumit :
James Wise That's what I have read. 20% I believe. I saw this from one of @J Scott post. Does this mean I can sell during the 90 day period for less than that?
Also, how is this structured? Do I purchase the property from FNMA then sell or is it a case where I put up the down payment, get under contract then wait the 90 days?

Yes, you purchase it and the resell within 90 days for up to 120% of the purchase price.

Or you can purchase it, hold it for 91 days and then resell for any amount you want.

The 90 days starts on the day you purchase the property.

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