We put in an offer on a Fannie Mae property (asked $5,000 less than the asking price). It's been a week, and no answer back. What's that

Asked by Annie12, 60171 Fri May 27, 2011

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Anthony Cava…, Agent, Jolier, IL
Fri May 27, 2011
In this situation, most likely the seller is negotiating another better offer and you've been put on ice pending that outcome.
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Wayne Beals, Agent, Chicago, IL
Fri May 27, 2011
Hey annie12,

I know it's crazy....You're not alone in your frustration. The reality is that Fannie Mae agents and the asett managers they take direction from are all heavily loaded with files. Communication and timeliness go out the window with the current workload. You agent should be constantly reaching out for an answer (the squeaky wheel does get the grease), but don't expect to get the deal if you're not the highest and best offer. You'll find this is not just Fannie Mae, but almost all REO sellers.

In my market area, we routinely see REO sellers wait for a multiple offer situation (preferably with a cash buyer) prior to responding. Last night, I just got news that the seller, after issuing a multiple offer addendum and requesting a highest and best by a deadline, balked and didn't execute any offer! I understand the strategy, and of course the seller has no obligation to sell, but I will be watching that seller in the future. It's real estate, not used cars people...

My advice to you is to request that your agent routinely check in for an answer, and that you be patient with the process. Make sure your offers are well thought out and that you are studying the comparable sales, especially Fannie Mae sales, in the area. This way, your offer is commensurate with other similar REO sales and you're more likely to get a positive response and be more competitive in a multi offer situation. Also, take advantage of the First Look program. This is typically the first 14 days of the listing period at which time the seller is not considering investor offers. This practically eliminates cash deals and gives owner occupants a strong advantage. An REO seller's participation in First Look is done to show a commitment to Neighborhood Stabilization. Since all these banks are floating on federal dollars (our taxes), they have to take owner occupancy very seriously for political reasons.


Wayne Beals
Keller Williams
312 77BEALS
312 772-3257
wbeals@kw.com
http://www.waynebeals.com
Web Reference:  http://www.waynebeals.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri May 27, 2011
Annie this is one of the huge problems with trying to buy a Fannie Mae property. It takes a very long time to get any answers, the agents rarely return calls or emails with questions and the process is as stressfull and painfull as a root canal. Hopfully you have a buyer broker who can guide you through the process, the key is constant contact with the listing agent for updates. the number 1 thing any buyer can do is ask about how teh process works and the time frame it takes before making an offer so they know what they are getting into. I really wish Fannie Mae would see there proces sis broken and it needs soem fising.

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…


Please see my blog with a full list of tips and advice on buying a bank owned home
Web Reference:  http://www.ScottSellsNH.com
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