Fanny mae loan - no postpone?

[Maryann L.]

So it looks like I'm loosing two properties at auction next week. We were able get both postponed once or twice before, but this time around were told that because they were fanny mae backed they wouldn't postponed and it's a new rule???? I've NEVER heard of this. Did my negotiator just get the run around or what?

Mind you the one I'm loosing Monday ordered a BPO yesterday....NUTS!

[Scott Hubbard]

This goes back to pre-screening your leads. Foreclosure costs include carrying costs, so you want to try and focus on leads that are not as far behind especially when dealing with FHA/VA.

A borrower A at 14 months behind already has accrued thousands of dollars in expenses more than a borrower B that is only 3 months behind. Therefore, the investor will not offer the same discount on to borrower A than to borrower B. Since FHA/VA discounts are predetermined, they will measure the projected costs left to foreclose and often see they can take back for a small amount when compared to what was already spent.

Remember to postpone a sale, some law firms will charge as much as $1500.00 just to delay. The costs are nearly the same to delay foreclosure as they are to take back title. So, when your offer does not add value when compared to an REO, they will usually decline to postpone. FHA/VA are rarely sold at auction because the opening bid is set too high. Hence there are usually no fees from the auction.

This is why I rarely offer on FHA/VA and never on ones where the borrower has been in default more than 5 months. The math rarely works and your offer could actually do them more harm than good.