Phoenix Fannie Mae Short Sales and Foreclosures – Are they over priced?

View of Crystal Point from BalconyAre Fannie Mae Short Sales and Foreclosures A Bargain?

When you see a short sale or foreclosure, do you think a bargain is coming  your way?   My advice: slow down and see who owns the note on the property.  If the foreclosure is a Fannie Mae owned property, be patient.  If it is a short sale and Fannie Mae holds the lien, you should seriously question submitting an offer.  You could wait months and then be asked to pay market value or higher. Don’t expect logic or common sense to found anywhere in the transaction.

 

The Oasis at Anozira lake community in TempeFannie Mae REO’s – Foreclosures – Not a bargain at first

Foreclosure properties have become synonomous with value if the buyer is willing to overlook certain deficiencies.  There are no disclosures, the property has been vacant, neglected and possibly mistreated by the previous owner.  Many buyers are willing to accept these risks if the price is right.  In the current market,  Fannie Mae foreclosures are initially listed over market value.  The prudent buyer will recognize this and wait.  Don’t assume that it is priced below market

An analysis of Fannie Mae foreclosures or REO properties that closed in January 2013 for Mesa, Gilbert, Chandler and Tempe revealed that Fannie Mae foreclosures were  initally priced 20% over the eventual sales price.   It appears that their strategy changed from the previous year.  In January 2012,  Fannie Mae properties were listed 10% over the eventual sales price.

Fulton Ranch Waterfront Home in Lake community Chandler azWaterfront Homes by City

There can only be two reasons for this direction. With low inventory, FHMA is hoping that a buyer with financing will offer the higher price and use Homepath financing which does not require an appraisal.  A cash offer would have the same benefit, no appraisal.  The other strategy is to steadily reduce the inflated list price until buyers find it attractive, thus convincing Fannie  Mae that they received the highest possible price and compensates for increased carrying costs such as taxes, HOA dues, utilities and maintenance.

The best advice to buyers is to understand the market and don’t assume that a Fannie Mae foreclosure means bargain pricing.

Fannie Mae Short Sales – A disaster in process!

Santan House with neg edge poolShort sales are synonomous with headache, and now Fannie Mae is trying to take it to the migrane level!   I’ve had two Fannie Mae short sales that based on updated BPO’s the servicer countered at prices at or above market value.   Other short sale agents have complained about the same challenge.  In one instance the counter offer price from Fannie Mae was more than the price for the same floor plan for a new build, 5 years newer, in the same subdivision.   The best advice is when you’re making an offer on a Fannie Mae short sale, be ready to pay market value or above,  and expect no discount for being a short sale with the related uncertainty.

It would be very beneficial when considering a foreclosure or short sale to research which investor holds the note.  If it is a foreclosure, Fannie Mae will eventually lower the price, but with a JFannie Mae short sale it may be better to move on.

Related Posts

 In search of happily ever after with an Arizona Short Sale

Who really loses on a foreclosure? The Bank- Think Again

The Lakes in Tempe Waterfront Property and Homes

Luxury Waterfront Property

Waterfront Homes by City

$311,900 :: 7001 W WINDSOR Avenue, Phoenix AZ, 85035

Property Photo

Mls Icon

4 beds, 2 baths
Home size: 1,330 sq ft
Lot Size: 6,099 sq ft
Added: 07/05/21, Last Updated: 07/28/21
Property Type: Single Family
MLS Number: 6260243
Community: MARYVALE TERRACE 58
Tract: MARYVALE TERRACE 58
The price of this listing was last reduced on 7/28/2021 by 1%
Status: Active


Recently remodeled, painted inside and out, new quartz, move in ready, dont miss out

Listed with HomeSmart


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$450,000 :: 17575 W WATSON Lane, Surprise AZ, 85388

Property Photo

Mls Icon

4 beds, 2.5 baths
Home size: 2,425 sq ft
Lot Size: 6,099 sq ft
Added: 07/19/21, Last Updated: 07/24/21
Property Type: Single Family
MLS Number: 6266999
Community: SIERRA MONTANA PARCEL 10
Tract: SIERRA MONTANA PARCEL 10
Status: Active


AMAZING 2 STORY HOUSE IN A PICTURESQUE NEIGHBORHOOD. GORGEOUS KITCHEN, SPACIOUS ROOMS AND A NICE CHUNK OF LAND IN THE BACKYARD. YOU WON'T REGRET IT! AGENTS PLEASE TAKE A LOOK AT THE PRIVATE REMARKS AS THEY ARE IMPORTANT.

Listed with Novus Realty Agency


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$250,000 :: 851 S John Wayne Parkway, Maricopa AZ, 85138

Property Photo

Mls Icon

2 beds, 1 bath
Home size: 576 sq ft
Lot Size: 98,882 sq ft
Added: 04/25/21, Last Updated: 07/24/21
Property Type: Single Family
MLS Number: 6226758
Community: SW SW SW NW SEC 28 6S 3E 2.5AC
Tract: SW SW SW NW SEC 28 6S 3E 2.5AC
The price of this listing was last increased on 4/26/2021 by 0%
Status: Active


Great big piece of Maricopa. This is the property that you need to have. Full of life at the end of John Wayne Parkway. Convenient to Stanfield, CG or anywhere on I-8.

Listed with Legendary Properties, LLC


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$2,856,000 :: 14531 E SIERRA ALEGRE Court, Fountain Hills AZ, 85268

Property Photo

Mls Icon

5 beds, 8 baths
Home size: 9,653 sq ft
Lot Size: 163,786 sq ft
Added: 07/22/21, Last Updated: 07/22/21
Property Type: Single Family
MLS Number: 6268282
Community: CRESTVIEW AT FOUNTAIN HILLS
Tract: CRESTVIEW AT FOUNTAIN HILLS
Status: Active


Luxury Contemporary Custom Estate designed to perfection on 3.8 Acres Located in a private GATED community on the Scottsdale border. Dramatic design & architecture w/soaring ceilings, HUGE open & split floorplan, oversized rooms, walls of windows w/automated glass wall off the family room w/fabulous & seamless extension of the indoor/outdoor living space! An absolute entertainers dream! MASSIVE family rm w/lrg wet bar & wine cellar open to the fabulous gourmet kitchen! Huge,5-car garage w/frosted glass doors, Elevator,Amazing master suite . w/FP,steam shower,huge master bathrm,& his/her closets. This is a REO property sold AS IS condition. H&B with a current due date of8/6/2021 11:59:00 PM Mountain Time.

Listed with JM Realty


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


 

2 Replies to “Phoenix Fannie Mae Short Sales and Foreclosures – Are they over priced?”

Leave a Reply

Your email address will not be published. Required fields are marked *