All Forum Posts by: Ryan Rogers

I've made a couple acquisitions through Homepath. I do my best not to get emotional over properties, but I'll confess to suffering some anguish over a few that were on my watch list that went under contract right at the end of the O/O only offer period.

The offer & negotiation process was pretty straight forward for each. A little slower with one than the other, but I was dealing with different REO brokers in different markets, so that's to be expected. Each one sold for a little below 10% below the last asking price. One needed a moderate rehab of about $25k, the other less than $10k.

One negative part of the process for me was using their title agent. The fees were very low, but their service left a whole lot of room for improvement.

Overall, the better the market, the harder it is to find a decent deal there (kind of like everything else on the MLS). But it's still worth keeping your eye on for that occasional opportunity.

2 REO HOMEPATH TRANSACTIONS:
I have purchased 2 4plexes in 2 separate transactions about 2 years apart from 2 different listing agents as REO's from HomePath during this last cycle. The first as owner-occupant in the "first look" period. The other as an investor after more than 6 months on market. Contrary to others, I have found them great in CA! (probably depends on the price point - just under $400K apiece here.) I believe all HomePath properties have a "first look" period for owner-occupants for the first 15 days or so. Forget exactly how many. Look on the site.

FIRST LOOK - OWNER OCCUPANTS
This is great if you are, because in my experience, they will not consider investor offers during that period, and if you are the highest offer at or above the list price, they will accept it. However, in my area, they would never accept an offer more than 2-3% off the list price. They prefer to bring it down slowly and see if anyone bites. That second one was on market forever, brought down in $15-20K increments over 6 months. There was finally a point where market rents and prices were overtaking the list price, and it fell out of contract after 3 months or so, so I jumped on it. It's my best cash flowing property I own. And anyone paying attention to the market could have grabbed it.

DOUBLE-END FOR LISTING AGENT
I recommend letting the HomePath listing agent double-end the deal to get your foot in the door, if you are comfortable not using your own agent, and it is competitive. The agents do tend to have a lot of listings with HomePath, so they might be busy, but just follow up with them and make it worth their while.

GET A DEAL?
The less responsive the listing agents are, the more you should hound them! But give them an easy commission! The other investors already hung up and moved to the next property where the listing agent responds. So there may be some opportunities there.. But because there is less foreclosure inventory than before and deals are getting picked over, there is much less opportunity with HomePath today that there was a few years back. What's new!? lol

Good luck!

PS: I usually tell people not to trust those with alliterative names, but I'll make an exception! lol

its a pretty typical REO Transaction, I was a Listing Broker for Fannie for years, the process has changed a bit, but the basics have not, dont send them an offer of 50% of list an expect them to accept, just not gona happen (in most cases) the closing can be slow, but most REO's are, and be sure the title company gets a special assessment letter, its often missed. Oh if you didnt know HomePath is the REO division of Fannie Mae, and HomeSteps is the same for Freddie Mac

Ryan Rogers my first purchase was homepath. It was bought as a primary. Looking back, it wasn't that bad. The bank even let me negotiate a little bit.

Oh yes, do I ever. 

Where do I begin?????? 

Can be like talking to a brick wall. 

If your offer is accepted things move pretty quickly.