Buying Freddie Mac foreclosure

[dmcc10880]

What is the name of your state (only U.S. law)? TX

Not exactly a truly legal question, but does anyone know of Freddie Mac's guidelines with respect to the typical % of list price to sales price on foreclosed properties?

Thanks.

 

[nextwife]

I've offered over list on a couple of Freddie Mac homes and didn't get them.

There is NO rule, what matters to the REO manager is a combo of factors such as time on the market, how depreciated the asset is already, the holding costs and overall activity level, how quickly the buyer can close and how "clean" the offer may be (such as how many contingencies, and how likely they feel the party is to close vs. tying up the property). Owner vs. investor is also a factor. Other offers vs no other offers, etc. How solid the deal looks is a factor.

Look at it based on list vs competition and recent sales. The list may be higher or right where it should be. Even below market. The degree one expects adjustment depends on where it sits in THAT spectrum.

 

[dmcc10880]

I've offered over list on a couple of Freddie Mac homes and didn't get them.

There is NO rule, what matters to the REO manager is a combo of factors such as time on the market, how depreciated the asset is already, the holding costs and overall activity level, how quickly the buyer can close and how "clean" the offer may be (such as how many contingencies, and how likely they feel the party is to close vs. tying up the property). Owner vs. investor is also a factor. Other offers vs no other offers, etc. How solid the deal looks is a factor.

Hey... thanks for responding. I appreciate it.

It's a condo in my building. Ask price is $279,900. Comp (next door) sold last fall at $273,000. Price per square foot it all over the board with foreclosures going from $101 to $161. The prior owner of this condo took the fridge and stackable full size washer and dryer. Lots of holes in walls, but no biggie.

I made my offer on the first day on market (Friday) for $245,000. No contingencies, except for ability within 3 days of acceptance for a home inspection. All cash deal. Condo market "sucks" here in Dallas. I did see that Freddie claimed the property for $271,880 on the court house steps earlier this month.

Thoughts? Of course, recognizing the FA crystal ball may not be working today... holiday and all.

 

[nextwife]

Likely too soon on the market to offer so far below asking. Most investors/auditors want to see that the price was ratcheted down incrementally from their start point.

 

[dmcc10880]

Likely too soon on the market to offer so far below asking. Most investors/auditors want to see that the price was ratcheted down incrementally from their start point.

I'm at around a 88% offer. Do you think it should be more? Get in- get out sold in as soon it takes Freddie to close? Appraisal at 279... claimed at 271. Would I just be better off waiting for them to counter then accepting? And, would that lock them in if I accept their counter? Thanks Nextwife.

 

[dmcc10880]

Update. FRE countered my offer Monday morning. I accepted all terms and conditions. Contracts 101- we've had complete offer and acceptance at the full asking price and all seller conditions.

I believe we have an enforceable contract, yet I have not heard back except for a Multi-Offer Form disclosing they have more than one offer on the property. FRE has not countered that offer.

What recourse might I have if I lose this property considering the offer and acceptance in writing between me and the seller's agent prior to receiving the Multi-Offer disclosure?