Q: Should I just offer my highest offer on a Fannie Mae owned property because Fannie Mae doesn’t seem to negotiate much. Should I submit same offer amount each month?
Asked by Lucky - Home Buying in Chicago
Mary Answered:
I work with investors that buy REO’s. What is typically done is you figure out what you are willing to pay for the property and then offer it. If it buys the property, great. If not, you just move on to the next one. From an investor’s standpoint, there is so much inventory there is no shortage of deals to be found (and made) – so you should never pay more than what you think makes sense. And you shouldn’t get too hung up on any one particular deal. You may need to make several offers before you get one accepted.
My experience has been that the banks don’t typically negotiate – they either accept the offer or reject it. Also, they will typically only look at cash offers – particularly if the property is in bad condition. I had one client make an offer on the property with 30% down. The lender accepted a cash offer for $30,000 less than his! The lender wants to know it’s a ‘done deal’.
The lender will also require “proof of funds” – meaning they want some evidence that you actually have the cash – i.e. copy of bank statements or brokerage account statement.
Hope that helps.
“To Your Success”
mary!
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