Fannie Mae Foreclosures? Can They Be Bought And Rehabbed?
I previously posted a topic on finding a rehab loan somewere in the state of florida, but come to find out the property that this loan was going to be for is owned by fannie mae. Now I guess my questions are:
1) Has anyone ever bought and rehabbed a fannie mae forclosure?
2) I heard that fannie mae doesnt take to people buying, rehabbing, and flipping very well ! So can this be done?
3) Who would I contact to purchase this house? The agent in this area that deals with Fannie mae homes? Fannie Mae directly?????
4) Will Fannie Mae let this happen at all?
5) I have about 15k or so for rehab costs, but not the purchase price! anyone know of a good rehab lender possibly in florida, tampa bay area?
6) Anything else you think im missing? ha ha : )
Thanks to anyone who takes time to read this!
-Shane Rochester
Hi, sounds like fun if you like slumy properties.
FHA when they perform on their underwriting and foreclose on a property, then give it to HUD. Each area of the country has a HUD agent appointed to manage and offer for sale the property. Brokers qualify to sell these properties and are then allowed to bid on behalf of their clients. This is normaly on line. The bids are examined and if they are not close enough. HUD may drop the price and put it out for bid again. They keep doing this until they get a bid which is acceptable to them and is within the area of appraisal. Your Broker is notified and you now go down to a Escrow or Settlement Office which has the ok of HUD. There you buy the property. You will be buying with a downpayment of between 5% to Zero. In many cases the Seller HUD will assist with closing costs etc. etc. They will also supply you with an estimate of repairs. You will always spend more. I would recheck the rate of resale in the areas in which you contemplate buying. With great care...some of the areas can be a little hostile, unless you deal, and carry heat. Good Luck Yes I am one of their authorized brokers but I have been unable to recommend any properties these last 12 months or so.
Cheers Lucius
Hi Shane,
Since you are talking about Fannie Mae loans, I will go into that for you. To answer your question, yes, you can buy a Fannie Mae home in preforeclosure, rehab and sell it for profit. They are less likely to give you a substancial discount, therefor it is your job to infulence the BPO of the property to a lessor amount. It is here that you will make your profit.
2) I heard that fannie mae doesnt take to people buying, rehabbing, and flipping very well ! So can this be done?
A - Sure it can. Just dont offer information to the lender. If they press the issue, tell them that you are considering keeping it for a rental property.
3) Who would I contact to purchase this house? The agent in this area that deals with Fannie mae homes? Fannie Mae directly?????
A - If it is a preforeclosure you will need to talk with the homeowner, get your papers together and then talk to the bank. If it is a Fannie Mae REO that is on the market already, you can call any agent to show you the house. If it is an REO that is still vacant and not on the market, there will be 1 or two agents in your area with a Fannie Mae or Homesteps Key. They always show me the house before it is listed and give me the first cracak at it.
4) Will Fannie Mae let this happen at all?
A - If they can get their investment back within reason, yes, the will.
I hope this helps and Best of Success!
BAMZ
Thanks all,
I appreciate the quick response. I called the agent today and were going to meet there on monday.
The funny things is the first thing he asked me after I told him I was interested in investment properties was " you arent planning on flipping this house are you?" : ) of course not im going to use it as a rental. HAHA. Then everything was kosure. Thanks again,
Shane Rochester