Freddie Mac

[IOBA]

I never  thought I would be posting in this forum, but here it goes!  

I am looking for experiences, feedback, tidbits of knowledge, helpful hints, and anything else you want to share that might help with this experience.

As the fates would have it, a house we walk by often has been sitting on the market for about 3 months.   I have made a few attempts to get into the house.  It's one of those houses that calls to me, ya know?   I have talked about what I would do to fix it up, what would look good, what it's visible problems are, etc...

The realtor that called me about the property did a walk thru with us.   Offers have already been made on the house.  All turned down by the bank.

**I am shaking**

Making an offer today.

Freddie Mac owns the house.  Probably can not get FHA financing because the house needs some work, although I don't think any of it is structural.  The lender has a preference with doing a conventional loan, but will get back to me this afternoon with our finance options.

Nothing major on the personal bank stuff.  We have been on a super tight budget for ages, planning to purchase a home in the next 5 yrs.  Earlier this year, we really buckled down...

Nothing major on the credit report.

Nothing major for debt - just one monthly payment of about $328.

Have had the down payment in the bank for about 3 months.  Plus closing costs.  And the reserves by time we close (this may already be in the bank, depending on how  much $ we have to bring to the table for closing).

Thoughts on a foreclosed home?  (We will have an inspection.)

Thoughts with purchasing from Freddie Mac?  (There is no Freddie Mac financing.)

[Booner72]

Actually, Freddie Mac has "homesteps" and it's Fannie's version of "homepath".  It sounds like this house isn't one of those.  The homesteps houses come with a "2 year warranty".  Another poster here wrote about his horrific troubles dealing w/ Freddie recently, so I'd use the search box and put in "Freddie Mac Homesteps."

In terms of buying bank repo - we loved the process.  No problems, smooth and easy, closed in 3 weeks.  Ours was through Fannie.

[Booner72]

PS:  How exciting!  Good Luck.  I know the feeling of the "shaking."

[IOBA]

Thanks Booner!

I had forgotten about the 2 yr warranty.  I remember seeing that in the house, on the kitchen counter, and thinking, "You have got to be kidding!  A home warranty??"

Do you know what that home warranty covers?   I think appliances...anything else?

Made the offer in writing, gave the pre approval letter, and a copy of the certified funds...wow.   Now the waiting game starts...

[Booner72]

IOBA - I've read good and bad about the home warranty.  Someone said it saved their arse and the other person called it a scam.  Just know what you are getting into and plan for the worst and hope for the best.  Day 2 in our house we were at Lowe's buying a 500 dollar hot water heater.  2 months in (now) we are fixing the a hunka hardwood that warped from our dishwasher leaking.  Good thing DH did hardwood back in the day and BFF just happens to have a black dishwasher for sale in her garage for 50 bones.

It all works out!  And even if you do end up with costly repairs - WORTH IT.  Being forced to rent when all you want in the world is your own little piece' a the American Dream sucks.

[IOBA]

Please, think lots of positive thoughts for us to get this house!

It needs a ton of work inside and some outside.   But that is ok.   While greenback funds will be in short supply after purchase, the sweat equity has been building up in the bank.    In other words, I will be doing lots and lots of work myself on the place.   I don't mind a bit!

The most exciting part of the property is that there is space to put in a garden!!!  I soooo want a garden!  And maybe a few fruit trees!!   

The home warranty is free....and hopefully the subs that come out will honor it.  

*fingers crossed that the offer is accepted quickly!*

[mauve]

Depending on what kind of work it needs inside, you may need to do a rehab loan.  FHA 203k is an option.  I bought a foreclosure from Freddie with a full 203k.  They were kind of a pain in the butt, but I do love my home.  I HAD to do a 203k loan, since my house had 0 full bathrooms and no kitchen.  (Toilet missing from one, sinks missing from everywhere a sink would be conceivably found - hence 0 baths).

[IOBA]

Thanks Mauve....the listing agent said this house does not qualify for HomeSteps.    Yet, I found out later (after the offer was made) that it IS a HomeSteps home!

Meanwhile, not knowing about HomeSteps, I had done research at local banks and credit unions.   None of them are offering 203k FHA loan.   They said the program is not available.  In other words, they don't want to do that loan.   I was pre-approved for a convention loan and just figured I would do the work at my own pace.   The lenders said that conventional loans do not need an inspection.  I am having one done anyways....just in case there is something major that I missed.

This house does not have a functioning kitchen.   Not sure if the bathrooms work or not.

When  you did the 203k loan, did you have a fixed time frame from the close of the house to have all work done and re-inspection?

[Booner72]

IOBA - have you gone online to the website and looked up the address?  Why wouldn't the house qualify for homesteps financing?  Seems to me if it's a homesteps house it would get the financing so that's weird.

[IOBA]

I STRONGLY suspect the listing agent is being super uncooperative for personal reasons.   I have only encountered this type of behavior once before on a house I  wanted to buy.

* on the market for a long time

* realtor difficult to reach

* claimed the house already had accepted offers and was under contract  (it never was under contract and the seller never knew there were offers)

* she was in co-hoots with others to push the price lower by leaving it on the market for months and then she was buying it for really cheap price.

My mom lived two doors down and finally fed up with the run around called the owner direct who lived in another city.   The whole thing exploded in court.   

This house

* on the market for more than 3 months

* realtor doesn't return calls or acknowledge emails from us or other realtors

* claimed the house has many offers and is not accepting new ones (my realtor managed to learn the house was NOT under contract and never had been)

* the house price has dropped 2 or 3x already

Sounds fishy to me...as for HomeSteps I learned about it after I was pre-approved for a conventional loan.  I did ask about Freddie Mac financing (again, not knowing about HomeSteps) and was told that my realtor had already asked the listing agent about financing and was told this home did not qualify.   hhmmm....yet it's listed as a HomeSteps home?

So we will see what happens.