Secrets for Freddie Mac

[Christian Malesic]

Through experience, does anyone have any ‘secrets’ or ‘tricks of the trade’ they are willing to share with making offers to Freddie Mac (HomeSteps)?

I am particularly interested in the amount of earnest money (good faith money) to present with our offer. I know Fannie Mae prefers 10% of offer compared to $500 which normally works with other REO offers.

PLEASE DO NOT RESPOND WITH BOOK KNOWLEDGE! We all have plenty of that.

I am looking for real tested methods. Thanks.

[J Scott]

If you're serious about not going higher than your offer price, then when you submit your offer, have your agent let the bank know that it's your "best and final." This will sometimes allow you to avoid a counter-offer (if the bank is serious about selling), but keep in mind, it may also hurt your negotiating position if they don't accept your offer.

Also, the bank is less likely to accept an offer without countering if the property has been on the market for a while. If the listing is new, the bank may very well decide to hold out for a full-price (or near full-price) offer.

One big thing with Fannie/Freddie properties is that that the addendum that they make you sign is NOT buyer friendly. So, be careful about putting down more EM than necessary, and be prepared to play by the bank's rules, even when it's not particularly fair.