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Updated almost 12 years ago on . Most recent reply
Is FNMA Pre-habbing where you are?
I've heard that back in the day FNMA used to paint and carpet houses in order to make them more easily financed on the resale. But now I'm seeing it for myself. There are a couple of recent sales in one of my farms where the new pictures show the houses totally repainted, including kitchen cabinets, new carpet and new tile in the kitchen and bath. And one appears to have a new kitchen counter surface and sink. Both of the houses were lived in for over a decade so, no, I don't think the borrowers gussied them up before the foreclosure.
I'd be so curious to see how their numbers worked out. There was only a $50K spread between bid price at sale and re-sale price on both of them. Hard to say what they spent on repairs because it have been way more than cosmetic. They got them back at sale because they didn't reduce the minimum bid.
Anyone else seeing FNMA rehabs?