Wells Fargo/Fannie Mae said $115,000 or NOTHING.
Hey there.
I've been working on my first short sale for about three weeks. It was an FHA loan backed by Fannie Mae. The bank wants $116 from the homeowner and the appraisal came in at $115.
But here's the story:
When I first started with the deal, I had no idea what the property was worth. The comps were all over the place. I saw one for $32K, $59K and another for like $74K. So to play it safe, I offered the bank $30K.
I met the appraiser last week and today the bank tells me it came in at $115 and they're not willing to accept less because of Fannie Mae rules.
The sale is scheduled for tomorrow so I don't have much time to work with. My conclusion is this is NOT a deal, but I wanted to post this to see if anyone else has any input. Perhaps I'm missing something.
If it turns out that this isn't a deal, I sure has heck learned a lot in the process. All I lost out of it was $$$ for a title search but I gained a lot of experience.
I welcome any comments, encouragement.
LT
LT,
Good job getting out there and learning something.
Short sales are hard on FHA or VA backed loans as the lender is garaunteed to get their money.
Just move on and find the next possible deal.
Yes Good Advice
You must move on fannie mae homes are very hard to short sale. but hey its a learning experience for you .
Much Success,
Manny
JMC Investment & Loan
Anyone have a reply ?
They do no have to deal. The loan is guaranteed by Fannie Mae so the bank will get paid for the full outstanding loan amount after the foreclosure. By selling for less to you they would actually be losing money when all they have to do is wait for Fannie to pay up at full value. They have no motivation to short sell.
So if Fannie Mae pays the bank the full amount owed after the foreclosure, and the house does not sell at auction, who has the REO after the sale ?, Fannie Mae or the Bank ?
Thanks for any replies !
Fannie would have the REO. Thats why HUD, Fannie and other quasi-government agencies have so many properties for sale.
Is it that you can only qualify for a Fannie Mae loan are if the Sales price is under $100K?
owner occ gets first bid. Teachers and police officers get special deals.
RichKid -
I replied to you in the L/O forum re: this. Once you buy a HUD Home, it IS YOURS. You can build it up, rent it out, roll it up and smoke it, or whatever you want.... The only exception to this is that most HUD homes are available for the first few days to Owner Occupants Only. If you go that way, then you must play by their rules, and renting it out would be dishonest and fraudulent. So long as you bought it as an investor, then you can do whatever you please.
-Jeff