What a great phrase…
Howdy all,
I have my eyes on what I believe might be a doable deal. I found a Freddie Mac foreclosed property listed for 27900. It pretty much needs a complete overhaul. My initial reapir estimates would be in the 12-17k range. My estimates are in the process of pulling comps for the nieghborhood. It’s filled with some doctors, nurses ect as it is within walking distance to a very large hospital. Two doors down there is a house being listed for 99600. My junker sits on a large lot 40x185 and in between to really nice well kept homes. The home is 3/2 1300sqft with plenty of room to expand. So far the numbers add up.
My question being a foreclosure, I would definetly try to get this home for as little as possible. Would taking pictures and submitting along with the offer help my chances of them accepting a lower offer?
Does anyone have experience buying from Freddie Mac and if so did they get discount? I heard HUD may go as low as 83% on offers.
Any comments appreciated.
P.S Open the case!!!
We recently did a freddie mac deal, they wouldn’t take a low ball, but they did agree to repair the foundation prior to closing, which surprised me. We ended up getting it for around $30k below market, with a good foundation and roof.
I’m not so sure the problem is with freddie, but rather the agent who is offering the property.
OPINION WARNING. When foreclosed properties are being offered by agents or realtors, they have no incentive to sell the property cheap; they work on commission. They are not harmed in any way to allow a property to sit unoccupied for a year or more (as in the deal we just did). I don’t think that they really tell the owner (bank or fannie or freddie) what condition the property really is in. The bank has dozens of properties on the list, all being managed by someone who has never had the time to actually visit the property and see for himself. So the bank happily continues along thinking that the property is worth full market when, in fact, it is not. In this case, getting around the realtor is a must. One way of doing this is to use an offer format that is legal, but different. The agent is obligated to provide the owner with all legitimate offers. So, having an offer with photos, estimates of repairs needed, etc is one way to “advise” the owner of the condition of the property that gets around the reluctance of the realtor.
sounds like a pretty good deal. check the roof and foundation; those are expensive.