Negotiate with Fannie Mae Foreclosed Property?

[Rick L.]

I'm interested in a foreclosed four family apartment building owned by Fannie Mae. From the pictures, it appears to be in pretty bad shape and will probably require a total gut rehab. Although, I am walking through it with my team of contractor on Monday (two general contractors, electrician, roofer).

Fannie Mae is asking 50k for the property. How do they determine the asking price of the property in this condition? I know everything is negotiable, but is Fannie Mae really open to negotiations? How do I get leverage and negotiate on price with the Feds?

I don't want to let this property slip away and want to offer a competive price.