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