Well, you all know my recent experiences with our "dream" house.....I figured I would give you my most recent update.
-Could have bought it at auction last month for $50K
-Let it go back to REO Fannie Mae thinking I would get a better deal
-SHOCKED Fannie Mae listed it for 80K
-Submitted our offer for 35K CASH (due to mold issues)
We found out today, it sold, an offer accepted for 95,500. YES, YOU HEARD THAT RIGHT 95K. Just another foreclosure IN OUR AREA selling ABOVE listing price (even with significant defects). The last foreclosure sold for 15K above list and now ... so did this one.
Now, here is the kicker.
Fannie Mae will offer a Home Renovation loan to the buyer to cover the mold repairs, carpet, appliances, etc. IF THEY DECIDE to do this type financing, they will have a mortgage for about $125-135 on a house that appraises IN A GOOD MARKET for 105K. Huh ??
Here is what I learned thru my research:
ARKANSAS is one of only a few states that is a non-disclosure state. ALL HOUSES (foreclosures or not), are sold "as is" .... Our state does NOT require any inspections by law unless requested and paid for by the buyer. Inspections are not required for any conventional loans (except for FHA/VA loans). Most residents do NOT ever get inspections (in fact, I searched and could not find a home inspector less than 3 hours away). So, homes are appraised in the CURRENT condition and priced accordingly. Since the housing market is going strong here, the realtors get more activity on foreclosures than normal homes because people are THINKING they are getting a bargain but, the house down the road is the exact same price. They are also pushed more by the realtors because multiple realtors are called in for BPO's and they recommend them to their buyers.
Now, as far as the mold. According to the AR Real Estate Commission, MOLD DOES NOT NEED TO BE DISCLOSED in AR. A realator MAY disclose it "morally" but not legally so .... our justification for the reduced offer will be ignored.
Also, according to the Fannie Mae Level 2 MANAGER: Our mold certification/justification will NOT BE CONSIDERED by them either unless our offer was accepted FIRST and we had the the inspection done AFTER ... and then it would be considered in the Renovation Loan amount. He said a "potential buyer" has NO RIGHT to submit anything/repair bid with offers because it is not OUR HOME to inspect prior to the offer being accepted by Fannie Mae. He also said they are not in the business to make "deals", they have lost billions, and unless their homes are in "considerable dis-repair" and sit for an extended period of time.......they do not sell bargains. Actually, HE WAS QUITE RUDE !!!
Basically, we have learned this:
-REO's in my part of AR do NOT sell below FMV.
-Never deal with Fannie Mae because they are NOT bargains.
-BUY HOUSE AT THE AUCTION and do not let them hit the realtors hands or you will OVER PAY !!!
Thanks for reading my loooooong "BOOK" .... Now, let me bend over and kick myself in the @ss one more time for not buying this thing last month at auction!!!!!
~~~~~~ Praying for our dream house ~~~~~~