Fannie Mae - No disclosure to owner-occupier buyer

[Kelvin J.]

Hi all. I just viewed a gem of a place that is going very very cheap. It is a fannie mae property and qualifies for a renovation loan which is handy as it is in need of a complete rehab. Its all wood frame and needs everything doing but the lot is fantastic, has water views, a workspace, good roof, old growth trees and shade, great rental neighborhood...looks fine. Fannie mae has 2 offers and I want to be the third, but I want to put in an inspection or finance contingency to give me an out if there is any structural problems I didn't see. (I've rehabbed before but with brick homes mainly and I'm no expert). Fannie Mae apparently will go very soon with the offer that is highest and has no contingencies. This leaves me no time to get an inspection and so I'd be putting in an offer with no guarantee the house doesn't have termites or mold that I didn't pick up on.

1. Any advice on how to make an offer with a way out if needed?

2. Also If the place has termites or mold or some other big issue am I looking at a disaster or just inflated rehab cost?