Just so most know, I am not asking for a discount, the highest price home nearby is 35K less then what I am trying to buy (my offer, not their ask price). I have been home shopping for months, and what I find is they ask these ridiculous prices, then 3, 6 months later you see them drop the price 30K. I've offered them a higher valuation based on the appraisal, and they are giving 3K. I am not slogging around "cash" because I think it buys me leverage, I am saying that eliminates the other lending loophole.
Regardless to any one reading this post, I highly recommend you completely sidestep the Freddie properties. The fallacy of "bidding wars" on every property to me is no different from them telling you how strong the housing market was at the top. Over-priced nets no buyers. Hence, why you have single family homes on the market here for well over a year with no offers. As a buyer, I can tell you it simply is not worth the hassle.
Thanks again to every one who responded, I appreciate it very much.