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Foreclosure/foreclosure in florida

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Question
We are attempting to buy a foreclosed property in Florida via Fannie Mae.  We initially made a very low offer and got rejected.  We then made an offer that was within 18% of the asking price and got rejected.  We offered the realtor another offer that was 13% below the asking price and the realtor said no it has to be no lower that 6% of the asking price. We are a little confused by the realtors reaction and the lack of the bank making a counter offer.  We are offering a cash deal and sent proof of the ability to purchase. The property has had new paint and some floors replaced but still needs more expensive work and even has a violation posted on the property window from the association stating that sliding glass doors need to be replaced.  It has been on the market since Sept. the 2013 and they have reduced the price twice, thus the current price.  I spoke with Fannie Mae today and was transferred to "the next level"  and I am waiting for a call back.  Any thoughts are appreciated.

Answer
Hi Jenifer,

I can understand your frustration. However the bank can sell the home for whatever price they want and no one can say anything otherwise. Fannie Mae has their guidelines on what they will take based off of list price. 6% is about right. So I agree with that realtor, thats where you will need to be to get accepted. If you need it for less, then you will need to wait for another price reduction and hope that someone else doesn't swoop it up before you do.

Fannie mae's guideline is 85% of the list has to be there bottom line. They pay all of their costs including commissions, closing costs, back taxes etc.  on top of the 85%.

Hopefully this gives you some insight.

Thanks
Brian

Foreclosure

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Brian Pitcher

Expertise

I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.

Experience

I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

Education/Credentials
I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

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