Fannie Mae Homepath property - sitting idle

[Sam Leon]

There is a property that I have been watching for the last six months.

Starting at 219K, it lowered it's price 209K, 199K, 189K, 179K, 169K, 159K in between it went under contract twice, then came back on the market.

When it came down to 159K I submitted an offer of 130K. The bank countered another offer, presumably a higher one.

Then the contract fell apart and after that the agent lowered it to 144K. I resubmitted my offer of 130K cash and the agent told me five days ago there is no other offer. The bank hasn't countered nor accepted my offer, just sitting idle.

OK now on to why the previous offers kept falling apart...the property has a 310K lien by the city - and this amount is growing every day by $300. Illegal structure and unpermitted driveway, both need to be removed. Once removed the city will accept 10% of the outstanding lien which as of today is 31K. So my offer is essentially 130K + 31K + removal cost + $30 per day between now and when it closes. Probably previous buyers didn't realize the liens until they get to their due diligence period then they freaked and backed out.

Now my question is, is it unusual for FNMA to sit on an offer and just ignore it? No counter no acceptance? Does it mean my offer is dead? I guess there is no way to expedite this? The longer they wait the more the lien at $300 a day.

[Sam Leon]

well, an update.

the agent told me FNMA rejected my offer and as of now there is no other offer.

yes, the listing agent is aware of the liens. I had a few conversations with the city and the code compliance department. It is still piling on $300 a day of fine on top of the existing 310K lien.

listing agent told me there was a previous buyer being countered at 143K.

then they changed asset manager...the LA said it will take some time for the asset manager to become aware of the lien situation as they have no direct contact with the AM.

right now listing price is 145K.

my offer - rejected was 130K cash no inspection.

LA told me it's 1 week from another price adjustment which she will attempt to knock another 20K off which would make the asking price 125K.

I said why don't you submit a new offer for me at 131K BEFORE the price adjustment and see what happens?

LA suggested may be a better approach is to wait till the price adjustment happen and submit by 131K offer.

But my concern is by that time that may attract a few more offers in and get into a multiple offer situation.

Thoughts? Should I send in a new offer BEFORE the price adjustment or AFTER?