All Forum Posts by: Julia Dugger

Well, for context, hot markets still get multiple over-list offers so this discussion might be irrelevant -- I know you don't really want to hear it but just bid whatever it's worth to you but I recommend at list and they'll come back to do a multiple offer round if there are others bidding. I'm pretty certain it's 100% of value required for HECMs.

sounds like this property is probably a HECM or former reverse mortgage which falls under different rules then the typical homepath property - HUD will not allow it to be sold for less than 100% of value for the first 180 days it is listed. So, I suggest bidding full price.

@JASON PIEBES, Greg is correct -- you cannot sell the home for more than $120K for the first 90 days after closing.

@Ryan Beasley, the HomePath mortgage product was retired two years ago and is no longer available.

Are you referring to the HomePath Ready Buyer program for the closing costs? If so, be aware that it is up to 3% but, more importantly, it applies ONLY to Fannie Mae REO properties that are found on HomePath.com.

If, instead, you're thinking of Fannie Mae's Home Ready program, that's a loan program that allows as little as 3% downpayment and can be used on any properties (though there are income limits so talk to a lender).

I was raised to believe that a car is a depreciating asset so once you've purchased one (ideally with all cash), then you take care of it and run it as long as it will go. I'm quite certain that nobody here would intentionally purchase a depreciating house so I'm not surprised that folks are getting the most out of their practical cars!

While I'd never buy a super expensive car (I have a long ago paid-for 2008 Mini Cooper S that's fast, fun and perfect for me), I bought a pretty expensive house but I can walk everywhere, can rent my basement apartment for 3/4 of my mortgage, and love my pretty, convenient, city neighborhood. Some things are just worth the investment - houses yes, cars never.

A useful thing to remember here is the seller side of this transaction - the performance measures for Fannie Mae employees responsible for the sale of these properties are based in sales execution and time as compared to several independent sources of value. And not for nothing, as a taxpayer you should appreciate that -- they've sold nearly a million foreclosed properties in the past 7 years and using this methodology, lost far less money as a consequence. 

Given that, it's completely unreasonable to expect that they're going to accept (or, honestly, even consider) an offer significantly below list price. This isn't unusual -- you wouldn't typically take a lowball offer on your house, why should they?

What you will see is that over time list prices will drop if the property hasn't had an acceptable offer during fairly regular 30-day or 45 day increments. There are deals to be had, for sure, but if what you're looking for is a significantly mis-valued property, they can be hard to come by. 

The first look period is intended for owner occupants only - Fannie Mae will consider OO offers during that time and will put the property under contract if they receive an acceptable offer in that window of time. Were you planning to submit as an OO or investor?

All information about Fannie Mae non performing loan sales, including dates and how to participate, can be found here http://www.fanniemae.com/portal/funding-the-market/npl/index.html 

@Art Maydan, you might just explore your financing options a bit further outside FHA - lenders tend to default to FHA because they know it but it isn't always the best choice. It can be worthwhile to talk to another lender (maybe not one recommended by your Realtor) or even a mortgage broker to shop the options.