Tips on negotiating with Fannie Mae

[Satha Palani]

Hi,

Fannie mae just accepted my offer on one of their properties. I have yet to do an inspection (waiting for them to turn the utilities on). While i was there today, i ran into a neighbor who told me that the house was "condemned". The previous owner was a slum lord who did not bother with repairs and the last tenant had the city inspector come out to the property. apparently in Richmond VA, a report from the inspector stating that the house is not fit for occupation is sufficient to "condemn" which is then grounds for the tenant to break the lease.

I am aware that the house is being sold "as is" and that with REO's we should not expect disclosures and i am fine with that. My question is; can i use this as grounds to negotiate the price down? The house is discounted and the discount reflects the amount of repairs required. The "condemnation" add a level of complexity (codes / permits) that i did not take into account in my initial offer price.

How do i negotiate with fannie? Any tips from those who have been in a similar situation. I am eager to ensure i am not over paying.

any and all help is welcome and appreciated.

thanks

[Lance Johnson]

@Satha Palani the amount of room you have to negotiate on the price now will depend on the particulars of the contract. Hopefully, at the very least, you have the opportunity to cancel the contract, and as long as you have that power, you always have some room to negotiate the price. Whatever happens, never go through with a deal that doesn't make sense if you have the option to put on the brakes.