Mortgage Loans

[LondonMassey]

I put in an offer on a house last week.  Knowing it had multiple offers before submitting mine, I went with asking price without any request for seller paid closing costs.  That evening I was emailed an addendum for my highest and final offer... the house was originally listed at $69,900 in October, then reduced to $59,900 (now) 3 weeks ago.  My highest and final offer was $64,501 plus I'll pay closing (I don't think it will appraise for more than 63k).  I live in Las Vegas were we have a ton of homes on the market but the ones in my price range keep getting sucked up by investors paying cash.

It's a Fannie Mae Homepath property, so they're suppose to give primary buyers "first look", meaning they don't consider any cash offers for the first 30 (could be 45) days...

Question is: Has anyone gone through this process?  The listing is now "off market" and pending.  I haven't been notified if my offer has been accepted or rejected and

I am now on day 4.  What are my chances?  and of course, any other thoughts or comments?? 

PLEASE HELP!! MY NERVES ARE PRETTY BAD! 

This home is move in ready with all appliances and basically what I was looking for.  Other homes in my price range are looking at 10-25k worth of work and I would have to compromise with not having an actual back yard or a 1 car garage instead of 2 (not too big of a deal but I'm fat... and claustrophobic with 3 kids, 2 that are still in car seats - it would be a pain in the rear to park in the garage ). 

[IOBA]

Ask your realtor for a status update.  The polite thing for the sellers to do is formally decline your offer.

If the status online in MLS has changed to pending, that sounds like the sellers have accepted an offer and are moving forward.

Fannie Mae is suppose to give home owners the first choice in the first 30 days (in other words, no investors).   You can always call Fannie Mae customer service and ask if your offer was accepted.   I'd recommend checking with your realtor first.

[LondonMassey]

I went to look at other houses with my realtor yesterday and he said that he had not heard any status on the offer.  The homes we looked at yesterday, all but one (that had no back yard) were just disgusting... and he said "Hopefully we'll hear something back about the other house soon."   I tried to call customer service but it is the weekend and they're closed.  I would like to think that they honestly wait the 30 days, but this is Las Vegas and these homes are being sucked up by investors left and right.  Cash will always be king...

[StartingOver10]

I work with/sell a lot of REO/Bank Owned properties.

They always come back with a Highest and Best offer request. This is part of buying a foreclosure. Fannie does actually give preference to the primary homeowner buyer too. Although in our area the preference time frame is 15 days and not 30 days.

Fannie Mae is known to go in and fix up some properties so they are move in ready for the primary residents. It also opens up the market to buyers that need financing. The cash buyer typically pays less for the property especially if they are an investor. Generally investors do not go after properties that are already rehabbed (at least in my area).

If the property is showing pending in the MLS then Fannie has accepted an offer. Have your agent get in touch with the listing office to confirm.

In the case of an REO, the agent typically does not notify any other party other than the "winning" party. Most REO listing agents run their business very differently then what you see in a typical, ordinary purchase. The communication burden is on the selling agent. Make sure your selling agent has a lot of REO experience. Make sure to read the Fannie Mae addendum as it changes the standard contract substantially.

Out of all the REO transaction types, working with a Fannie Mae seller is one of the easiest to complete. There are plenty of FNMA homes. Get on the list of upcoming properties so you know what is coming up before it hits the market.

[LondonMassey]

I emailed with my realtor yesterday and we've decided to try for a house that's 3 doors down from the one I put an offer on that is basically the exact same house... just with a different address.  That one is a short sale, which doesn't matter much to me.  I don't appreciate putting in a firm bid and earnest money and not being respected enough to be told no. It's not as if I tried to low ball.  I offered asking price plus no request for seller to cover any closing expenses.  For the highest final offer I came back with over 5k more than asking.  The house didn't sell at 69, 900... according to history they had a bid in at 65k and it never cleared.  The home was then relisted at 59,900 and my offer was $64,501 and I  made absolutely no requests towareds the seller.  I hope their deal falls through.  My offer is being pulled Tuesday morning.

[LondonMassey]

towards*

[IOBA]

LondonMassey - I can say I totally understand.   I went through a painful experience back in October with a Freddie Mac house.   The listing agent did not do (IMO) an honest job trying to sell the house.   Long story short, after putting in my SECOND offer (the first offer was not turned in a timely manner), I heard nothing back.   Called Freddie Mac a second time -- they never recieved the second offer.  Then Freddie Mac (not the realtor)  informed me we were in a multiple offer situation and told me to submit my THIRD offer (remember, they never received all of the first offer, never received my second offer, and all of a sudden, they want the third offer??)

The realtor never emailed the NEW paperwork for the "best and final offer" that Freddie Mac wanted.   So, I dropped out.

No joke - less than a week later, the price on the house dropped 20k.   That was end of October, beginning of November 2011.

Here it is, February 2012 - the house never sold.  Freddie Mac finally pulled it off the market.  Kinda.  Sorta.  It's no longer in the MLS listing, but it still has a for sale sign up.   County tax records don't show a recent sale.

Yep, I had less than pleasant thoughts towards Freddie Mac after we got jerked around on that deal.  I really, really wanted that house.   Still do, but my priorities have shifted.  Now, I am happy that things worked out as they did for me.   So I totally understand why you hope things don't work out.

[LondonMassey]

I just don't understand the purpose of dropping the price if there was never any intention on selling it at a lower price.  It's just stupid.  The other house on the block is a lot nicer though, same model of home, floor plan, etc... but it is painted, has tile flooring, and actual grass in the backyard.  It's at 63k as a short sale, so I'm trying to figure out what to do for an offer... I don't know anything at all about short sales.

[StartingOver10]

Just a little explanation on how these REO properties are priced:

The listing agent works with an assigned Asset Management company. The Asset Manager for that property handles the "seller side" of responding to offers through the listing agent. As to pricing, there are two types of asset managers: 1) the type that prices the property at or around the actual market value and expects full price or close to full price offers; and 2) the type that price the property substantially below market value and expects bids to be much more than list.

This does not mean that they price the properties right. In fact, it is up to the buyer and the buyer's agent to see what the real value is before making the offer. The asset manager's sole job is to get the most money for the property - regardless of the market. When they start dropping prices its because they over estimated the value. I find that Asset Managers over estimate value all the time. They are generally out of the area to begin with so you know more about your area than they do. It's important to remember that when  you make an offer.

The Asset Managers also have a variety of marketing methods available to them. They can sell it using an agent and traditional MLS or they can sell it through an auction type process (not the county auction - private auction).

All these decisions affect how they price a property.

As to the Asset Managers responding - they are awful. It really is up to the selling agent to stay in contact with the listing office to determine where the offer is in the process. If your agent is not well versed in REO type listings, they may not be accustomed to the listing office not responding to their email or vm update requests. It is how those type of sales are done. I am not defending it, because I don't appreciate it either when you have an outstanding offer and no response. But, the way around it is for your agent to be proactive.

[LondonMassey]

My agent is a great agent... and skilled in REO and short sales.  I live in Las Vegas where that's basically all that's on the market right now.  The home would appraise around 62k maybe 63k depending on appraiser, so going in at $64,501 on an FHA where the appraisal has to stick with the property for a few months was fair.  If they didn't drop the price down to the appraised price, they're kind of stuck with a specific number for a while and I move on to another home.  There is absolutely no way the home is worth $69,900 as it had initially been listed.

There is a house 3 doors down currently listed as short sale for just under 63k and is significantly better quality inside.  It is the exact same home, just different flooring, cabinets, grass instead of sand in the back yard, pine tree instead of palm tree, and it is painted. 

None the less... I'll end up with a house... just hoping the when and where gets figured out soon