How do I determine a reasonable offer on fannie mae foreclosure?

Question

I'm just wondering how low can they go? With this fannie mae crisis, is it possible to land an acceptable offer at half the original list price?

Answer 1

It may be possible, but unrealistic.  At half price the current market value, Fannie Mae is more likely to reject the offer and look for something closer to real market value, like any property owner would.

Answer 2

The situation at FNMA (Fannie Mae) is not going to change the amount of monies they will accept for properties as you seem to think.  If anything, it would cause them to hold out for MORE money.  Financial woes are not solved by taking LESS for properties.

Answer 3

I have been in the foreclosure industry for 12 years and although it is certainly possible to buy a home at 50% of the market value, it doesn't happen often. When it does happen, you'll quickly find out that the market value was nowhere near what you thought it was.

As a general rule, lenders will sell a home for 88% of their assessed market value. This means, that if you offer 88% on the first day it's up for sale, there is a very good chance it will get accepted immediately.

If you want to buy a home for less, you can make an offer and try to get into a negotiation with them, or you can wait until the home has set on the market long enough for them to consider a lower offer. A more reasonable offer would be 70%, but if its a lower value property (less than $75K) a 50% offer may not be unreasonable.