Home Buying in Ellenwood>Question Details

Grandma, Home Buyer in Ellenwood, GA

why is it so hard to buy a fannie mae home. why are there so many multply offers on their properties? How do you win their bid. how do they choose?

Asked by Grandma, Ellenwood, GA Thu Jun 2, 2011

who they will sell their propert too?

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It's not hard, per se, to buy a Fannie Mae home, but it does take persistence. The key to any foreclosure is in price and not having a lot of contingencies. There is a lot of competition for foreclosure properties - they are what everyone wants to buy - so if you are not the highest offer, with the shortest close, and the fewest strings attached to the offer, then your offer is not going to b the most attractive offer on the table. Most of my foreclosure buyers end up making offers on several properties before they finally get one. If you plan to live in the home, then you need to look for a fannie mae or freddie mac home that is still within it's "first look" period, which is the only time a buyer has an edge over investor buyers.
1 vote Thank Flag Link Thu Jun 2, 2011
They choose based on highest and best offer criteria, which is subjective and conditioned by the personnel involved.

So what?

The key to this submarket as a purchaser is to see lots of properties and make lots of offers.

Are you a purchaser, Grandma?

It's not hard to find these properties, by the way. What are your reasons for saying that? That's preposterous, Grandma. I can take one research swat at Ellenwood/South Dekalb and probably find 50-75 Fannie Mae Homepath listings for properties....

Why are there so many multiple offers? Grandma, when only 38% of all properties are selling, and when over 50% of all sales activity in metro Atlanta is happening under $200,000 and when well over 50% of that sales activity is distressed sales activity, well multiple offers are a functional part of the game.

FNMA Homepath terms and conditions have made the playing field very level for first time, primary resident homebuyers. There are other organizations, like non-profits, churches, etc. who also get an advantage over investor buyers / all cash buyers / absentee owners, with these properties.

Truly, quite fair. Truly, highest and "best" offers win. Truly, with multiple offers, they can be "choosy..."
1 vote Thank Flag Link Thu Jun 2, 2011
If you can get pre-qualified with a company to buy a home, we can buy the house for you in cash to make a more impressionable offer to the seller. After purchasing the property, we will sell the property to you. Yes, there is a fee but when paying cash, seller's are sometimes willing to take less for a property because they don't have to wait to see if the person will qualify for the loan. HUD, on the other hand will take a primary residence buyer over an investor paying 3 times more. You can check out HUD properties at hudpemco.com
0 votes Thank Flag Link Sat Jun 25, 2011
Lee made some great points.

Some variables also need to be answered.

Are you looking at these homes as an investment or a homestead? Has your financing already been locked into place? Are you ready now?

When dealing with any foreclosure, muchless just Fannie Mae, you have to be ready to go. Financing has to be in place, you have to know your strategy going in, be able to have your team in place to make quick decisions, and also have aggressive terms on the purchase and sales agreement that say "this is a serious offer."

It's frustrating, I know. There are many investors in the market, many of which are not even located in Atlanta that are aggressively seeking these deals daily. This is one of the best buyers markets in the country. Also, with the first look initiative it allows for a lot of exposure to many buyers therefore brewing more competition.

Depending on your situation I may be able to help you as our firm focuses on REO acquisition and we can eliminate the whole process of offering and highest and bests.

Let me know if I can be of assistance, otherwise, I hope this helps your perspective a bit.

Good luck.
0 votes Thank Flag Link Thu Jun 2, 2011
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