Freddie Mac/Fannie Mae foreclosures can be Difficult

So many consumers have the notion that if a property is in foreclosure, they are going to get one great deal; however, I continually find the foreclosures owned by Freddie Mac or Fannie Mae are difficult to negotiate. Just like any government deal they are wrapped up in what is seemingly bureaucratic tape. The listing has been appraised or a broker's price opinion has been secured to give the owner a parameter of where to price a foreclosed listing. The employees that handle these negotiations are seeminly only allowed to veer from the list price by a very small percentage. For example: 2 Weeks ago I presented an offer for a buyer on a listing that has been sitting for months. The home is priced at $287,000 which is fairly inexpensive for this area; however, the home needs an extensive amount of work, and it will either be a tear down or a complete gut and remodel. My client is a cash buyer and offered to closed quickly at an offer price of $231,000. Freddie Mac countered by moving off of their price to $285,000. Any other bank having held the property on the market for 6 months would have worked hard to negotiate a price that would be agreeable to buyer and seller. Instead when my client offered an additional small amount over their original offer, Freddie Mac simply declined the offer. The property is still sitting. Where is the reason in that type of negotiation? It is frustrating to all parties involved, and the simple truth of the matter is that they will probably not get any more than what was offered by my client after sitting on the property with carrying costs for several more months.

Other large individual banks can be difficult as well, but overall there seems to be a stronger sense of reasonable effort to come to the closing table.

As a specialist in the REO market, I can help you find a property that is just right for you. I have completed the training for Certified Distressed Property Expert (CDPE) and Short Sale and Foreclosure Resource (SFR). I list short sales and have succesfully negotiated many to the closing table. If you need help in this market, please give me a call at 615-661-4400/615-289-6056 or email me at mariaholland@comcast.net I am fully licensed and specialized in both buyers and sellers.