not sure how this will work out for us.  The listing agent is working on getting our offer in front of Fannie Mae however he said that they have already turned down an offer of $185k so they will probably not be receptive to ours and allow the home to go through with the auction.  The highest bid right now is $90k which is still lower than our offer    and the auction ends sunday.  In the meantime I think we will go to some open houses and go back to another home we were interested in.       

It's Sunday...hopefully you will have great news tomorrow morning!  

Hi,

I want to know, what happened at the end. Fingers crossed!

Just realized you guys were waiting.....as itturned out, Fannie Mae never saw our offer because the listing agent s contract expired.  We watched that auction all weekend and the highest bid was $162k which Fannie Mae did not accept.  we were willing to offer $172k but there was no way to get an offer on the table.  They will continue to auction the house until it sells I guess.  In the meantime we found another home for $185k  with  lower taxes in a great school district. We offered full asking price with 6%sellers assist today and our realtor said the listing agent was excited!!! We shall see.......