how to buy a foreclosure from fannie mae

Having a mortgage approval may give a professional agent some reassurance of your ability to shop within a certain price range.
Contact a licensed real estate agent to discuss Fannie Mae properties that you desire.
Mortgage lenders who are affiliated through Fannie Mae might offer certain home buyer incentives.
A loan officer can determine the price range that you’re qualified to finance toward a Fannie Mae property.
Accompany your real estate agent to view several Fannie Mae foreclosures.
If your offer is below the asking price, Fannie Mae might decline your proposal, and you may need to present a counter offer.
A favorable credit standing might enhance your ability to acquire financing for a Fannie Mae home.
Prospective home buyers might be able to locate Fannie Mae properties in nearby or surrounding areas.
Present a copy of your mortgage approval to your real estate agent.
Cole writes for eHow and "SF Gate." As a small business owner for over 15 years, he provides mortgage services, credit-related help and financial planning for his clients.
The mortgage approval is required to place a contract on a Fannie Mae home.
Whether you are a first-time home buyer or you’re seeking another property, Fannie Mae frequently has below-market prices on most properties.
Generally, Fannie Mae considers two items: the net proceeds from the sale, and the closing date.  In this environment of multiple buyers, Fannie Mae has the sole right to choose which offer is in their best interest and decide to either accept the offer as is, or further negotiate with a potential buyer.  If the highest offer falls below Fannie Mae’s desired sales price, Fannie Mae is not required to accept any offer, even the highest of multiple offers, and can instead decline all offers and return the property to the market.
5.  What happens when two buyers want the same property?  If two or more people are attempting to purchase the same property at the same time, Fannie Mae will no longer negotiate.  Each party is required to submit their "highest and best offer" within a specified time period.  In this situation, buyers may wish to make offers which exceed the asking price to increase their chances of an accepted offer.
4.  Fannie Mae will negotiate with buyers!  Generally, Fannie Mae sells their listings between 92 and 100% of the asking price at the time an offer is made.  However, this does not mean that Fannie Mae will automatically agree to take 8% off the asking price.  All contracts must be negotiated.  As a matter of policy, generally, before Fannie Mae agrees to take less than 92% they will reduce the price and market the property again at the lower price.  Properties which have aged on the market, or have especially adverse conditions, are subject to be sold at an even more reduced price.
8.  We pledge to work all offers in a timely manner.  Fannie Mae sales reps expect you to negotiate.  Usually, offers presented before 3 o’clock will receive a response the same business day.  Fannie Mae will negotiate all reasonable offers, but unreasonable offers may be rejected outright.  If you are in the market for real estate, we hope you will consider a Fannie Mae REO property to meet your real estate needs.  We wish you success in achieving all your real estate goals.
3.  Paragraph Three of the Indemnification Agreement states Fannie Mae will refund the entire purchase price of the property, in the event of a property redemption.  Fannie Mae makes no offer above the actual purchase price, so buyers obtaining loans in an amount greater than the purchase price should insure that their lender is aware of the limitations of the agreement.
7.  Fannie Mae requires that title work be prepared by an agent of their designation.  A separate local closing agent is also enlisted to prepare and oversee document signing and recording.  Generally, the additional attorney fees are about $500 dollars more than those of other real estate transactions.  Again, Fannie Mae will negotiate closing costs, but it is the responsibility of the buyer to know what closing costs will be required for their specific transaction.
There are few better deals in today’s real estate market than properties that are currently owned and managed by Fannie Mae.  This page is here to help you understand what to expect when attempting to purchase a Fannie Mae owned property.
Some homebuyers and investors are interested in buying Fannie Mae homes because the company offers favorable terms, but you must factor into your offer price the additional costs of conducting an inspection, title search and surveys.
Fannie Mae lists its homes on a Web site called That site is easily searchable by state, town, Zip code, price, number of bedrooms or baths; it provides detailed information about the listings and the listing agent’s contact information.
Additionally, Fannie Mae may acquire ownership of properties through a deed-in-lieu of – a transaction in which the homeowner (mortgage borrower) voluntarily transfers the ownership of the property (the title and all property associated with it) to the owner of the mortgage in exchange for a release of their mortgage loan and payments.
For example, is our website, where homebuyers and real estate professionals can get detailed information on our listings, and HomePath Mortgage offers buyer financing products these properties.
If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents.
Report possible fraud directly to Fannie Mae at You may also call our Fraud Tips Hotline at 1-800-7FANNIE (1-800-732-6643) to report possible fraud or if you have other concerns relating to a Fannie Mae-owned property.
No, Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents.
When buying a Fannie Mae-owned home, you should know the condition of the property, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.
Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties.
HomePath is the branding used for all Fannie Mae-owned properties — anytime you see something labeled "HomePath", it has to do with the sale of our Fannie Mae-owned properties.
You may not republish, offer for sale, or otherwise make publicly available HomePath contents, or use HomePath contents for marketing purposes, without Fannie Mae’s prior specific written approval.
Go to the Helpful Resources section to learn more—you can view the Buyer’s Guide, listen to a podcast series on Fannie Mae, HomePath and the industry, and more.
Through and the Fannie Mae Mortgage Help Centers, Fannie Mae offers assistance directly to homeowners so they can understand their options to avoid foreclosure.
Fannie Mae works with mortgage servicers, housing counselors and other partners to help homeowners prevent and avoid foreclosure.
Learn about your credit score, what it is and how it affects your ability to take advantage of some foreclosure options.
Find the answers to common questions concerning your mortgage and the various options to avoid foreclosure.
Before you even start searching for your dream home, you should talk to a lender and determine what you can afford and learn about what types of loans are available.
Learn how to identify and avoid scam artists who promise immediate relief from foreclosure.
Visit our glossary of key terms to increase your understanding of the foreclosure options available.
You’ve found your dream home, your offer has been accepted, the financing is in place, and the inspection is complete.
All offers on HomePath properties must be made using the HomePath Online Offer system.
After March 5, 2013, all counter offers must be submitted on the Online Offers system on the site.
HomePath offers owner occupants (homebuyers who will live in the home as their primary residence) an exclusive "first look" at newly listed foreclosed properties.
Fannie Mae is committed to preventing mortgage fraud, including REO Sale and Short Sale fraud, whether perpetrated by borrowers, purchasers, real estate professionals or any other parties involved in real estate transactions.
Once you’ve located the property, click the property address link or the Online Offer logo to access the listing details page. is not responsible for the contents or reliability of any linked websites, or the information, products or services contained therein, nor does this link constitute an endorsement by of the site or the information or products presented on the site.
During the First LookTM marketing period, you can make an offer and purchase a HomePath home without competition from investors.
First time using Online Offer? Click here to access instructions and training webinars.
To help move its inventory of foreclosed real estate owned (REO) properties, Fannie Mae is offering financing to home buyers that they will not be able to get anywhere else (even through Fannie Mae’s regular mortgage programs).
Renovation financing is available! Similar to the FHA 203(k) program, home buyers on select properties in the Fannie Mae list can purchase a home and qualify for up to $30,000 in additional financing for rehabilitation.
If an investor purchases a Fannie Mae Foreclosure there is a Deed Restriction placed on the property that the buyer/new owner can not resale the property for more than 120% of the purchase price for a period of three months.
Once Fannie Mae and the buyer agrees on a selling price the buyer has 10 days to complete all inspections and respond to Fannie Mae on their intentions to move forward with the purchase of the home or rescind their offer to purchase.
In general Fannie Mae makes every effort to provide their homes for resale in reasonable condition but the buyer has all of the responsibility to inspect the home and accept the home, “As Is”, in it’s present condition prior to closing.
Fannie Mae also requires that their own Purchase Addendum be included as part of the Offer to Purchase Contract.
Fannie Mae works with lenders to make sure mortgage funds are available for individuals to purchase homes.
Fannie Mae encourages investors to purchase foreclosed homes but the requirements to purchase are slightly different that that of an owner occupant.
In North Carolina Fannie Mae is exempt from providing to the buyer a North Carolina Property Disclosure Statement because it is a foreclosure and they have no knowledge of what has or has not been done to the home in the past.
Lockhart III presented his report, “The Present Condition and Future Status of Fannie Mae and Freddie Mac”.[58] Highlights of the report include, the Treasury Department’s commitment to fund up to $200 billion in capital for each Enterprise is expected be sufficient; the Enterprises own or guarantee 56% of the single family mortgages in this country, or $5.4 trillion of the total $11.9 trillion in outstanding mortgage debt; their combined share of mortgages originated in the first quarter of 2009 was 73%; private-label mortgage-backed securities (PLS) are a major driver of Enterprise losses; both Enterprises are heavily involved in planning and implementing the Making Home Affordable and the Home Affordable Refinance programs.
The bill, if it were passed, would modify the budgetary treatment of federal credit programs, such as Fannie Mae and Freddie Mac.[37] The bill would require that the cost of direct loans or loan guarantees be recognized in the federal budget on a fair-value basis using guidelines set forth by the Financial Accounting Standards Board.[37] The changes made by the bill would mean that Fannie Mae and Freddie Mac were counted on the budget instead of considered separately and would mean that the debt of those two programs would be included in the national debt.[38] These programs themselves would not be changed, but how they are accounted for in the United States federal budget would be.
Bush on July 30, 2008 — enabled expanded regulatory authority over Fannie Mae and Freddie Mac by the newly established FHFA, and gave the U.S. Treasury the authority to advance funds for the purpose of stabilizing Fannie Mae, or Freddie Mac, limited only by the amount of debt that the entire federal government is permitted by to commit to.
The on- or off-balance sheet obligations of the two GSEs, which are "independent" corporations rather than federal agencies, are just over $5 trillion, a significant amount when compared to the $9.5 trillion of officially reported United States public debt at the time of the takeover.[33] The September 6, 2008 conservatorship and the subsequent planned Treasury infusion of capital support the senior liabilities, subordinated indebtedness, and mortgage guarantees of the two firms.
In 2005, the Federal Housing Enterprise Regulatory Reform Act, sponsored by Senator Chuck Hagel (R-NE) and co-sponsored by Senators Elizabeth Dole (R-NC), John McCain (R-AZ) and John Sununu (R-NH)[1], would have increased government oversight of loans given by Fannie Mae and Freddie Mac.
The same day, the then Federal Reserve Bankchairman Ben Bernanke stated in support: "I strongly endorse both the decision by FHFA Director Lockhart to place Fannie Mae and Freddie Mac into conservatorship and the actions taken by Treasury Secretary Paulson to ensure the financial soundness of those two companies."[4] The following day, Herbert M.
Fannie Mae discovered that the credit bureaus are so inaccurate with their data, that they were posting short sales as foreclosures on your credit report in error! They were putting you in a penalty box for 7 years and devastating your credit.
Our qualifying homes come with a reviewed title, and a repaired living space making them easier to sell and improving home values in your territory.
Please enter a County or City, State or Zip Code to search.
Please enter a county or city, state or zip code to search.
In fact Fannie Mae has been "correcting" valuations to exceed the highest comps available – to exorbitant values no buyer would ever pay – leading to short sales being declined, properties sitting on market longer, more foreclosures and more neighborhoods being blighted as inventory sits vacant.
While their loan was serviced by Chase, the loan was actually owned by Fannie Mae who had recently updated their guidelines to allow short sales to be approved for current borrowers in situations of employment based relocation.
The intent of these new guidelines is to consolidate existing short sales programs into one standard short sale program, and streamline program rules in order to quickly and easily qualify eligible borrowers for short sales.
I’ve been hearing a lot lately about Fannie Mae forcing customers to go into default in order to approve their short sales, so I knew we’d be up for a rough road with this client.
Fannie Mae and Freddie Mac have recently issued new short sale guidelines to their mortgage servicers.
Whats wrong with Fannie Mae? FNMA declines more short sales than ever before…new guidelines prove useless.
A Fannie Mae mortgage will be available to you two years after your short sale, assuming you qualify otherwise.
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Rentback approaches fall into one of three broad categories: (1) own-to-rent programs that help owners rent their former home from its new owner, (2) own-to-rent-to-own programs that help owners eventually re-purchase the property after renting it and rebuilding their credit, and (3) right-to-rent laws that create a right to rent the property back at market rates for a specified period of time after foreclosure.
In the fall of 2009, Boston Community Capital (BCC), a community development finance agency (CDFI), launched the Stabilizing Urban Neighborhoods (SUN) initiative to purchase homes at foreclosure sale and resell them to their current residents (whether a renter or the former homeowner) with a 30-year fixed rate mortgage.
An approach that goes by several names — rentback, right-to-rent, own-to-rent, or own-to-rent-to-own — can enable at-risk homeowners to stay in place after foreclosure and rent the property back from the new owner at market rates.
The Protecting Tenants at Foreclosure Act (discussed in more detail on the Protect Renters Living in Foreclosed Properties page) helps to prevent displacements of renters after foreclosure, but programs can also help former owners stay in place even if a foreclosure cannot be avoided.
It appears Fannie Mae’s attorneys, Orlans Associates failed to disclose to the court that their client had sold the mortgage note to Bank of America before commencing with an eviction in Fannie Mae’s name.
During the case questions arose about how Orlans handled the foreclosure for Bank of America and Fannie Mae because it appears the signature of Orlans attorney, Marshall Isaacs had been forged on the affidavits connected with the Sheriff’s Sale.
Making Myers drive the 3 hours from suburban Detroit to southwest Michigan to make an asinine argument like that was futile because Judge Stutesman dismissed the eviction lawsuit with prejudice meaning Fannie Mae cannot return to court to evict Robin Roberts.
Last week, Judge Paul Stutesman of the 45th Circuit Court in Michigan ruled that Fannie Mae lacked the legal standing to evict MFI-Miami client Robin Roberts from her home in Three Rivers, Michigan.
Orlans as the law firm representing both Bank of America and Fannie Mae, failed to record an assignment or a deed from Fannie Mae to Bank of America and proceeded into the eviction stage of the foreclosure representing Fannie Mae as if nothing had happened.
Roberts’ file by Bank of America, Fannie Mae launched their own internal investigation and presumably found serious flaws in the way Countrywide Home Loans originated and underwrote the file.
We bought a foreclosure and it was quite a bit more work than we initially thought but so worth it! We bought our house for $150k and we have an additional $20k in it and we just refinanced it and the bank appraisal came out to $280k!! We were thrilled.
The house had been a rental for around 6 years and the original owners selected no builder’s upgrades at all so we were free to put our stamp on it with all new flooring (carpet, yes carpet, wood laminate and tile), granite countertops with beautiful stone backsplash, every room repainted and in beautiful colors, retiled the fireplace surround, all new light fixtures, recessed lighting in the long entryway, a beautiful fan w/lights for the 11′ ceilinged living room.
Spent 10 years re-doing things like lifting up part of the sill with a car jack and replacing the sill; ditto to doing the same with the barn out back; learned how to work with slate roofing—and how to deal with being ON the slate roof in a strong earthquake!-crazy 1950’s lino floor tiles that lifted off the hardwood flooring in the kitchen every time I tried to wash the floor but refused to COME UP when I wanted to re-do the floor! Stripped off the worlds oldest and ugliest lino laid on wide board pumpkin pine floors.
First, we had a garage sale at our existing house of 17 years and a physician came to a garage sale we had (and that house wasn’t for sale) and fell in with the property-and bought it.
the people who bought the property from me bought it as an investment property to rent out, and ended up losing the house in a few years.
My son and his wife at age 25 bought THEIR first house as a "Short" sale–and got a great deal! Now we are looking for investment property.
In the end we bought a foreclosed house that the owner had been in the process of being foreclosed when she died.
Ever! We had reversed plumbing; no shut offs on ANY plumbing; rotted rear sill from badly installed deck (see above–we knew HOW to fix this but others were scared off by it) No front access at ALL–the place had NEVER had even basic steps; the kiddos had a full sized POOL in the finished basement meaning we then had to rip out the entire basements worth of water soaked lino; discovered that our kids were allergic to wasps in JANUARY when we moved in and heated the place and they came out of the walls where the windows had been left OPEN since the previous May.
Because I bought at the low point during the house bust, my location, property and value of my home now might be considerably more than what I paid – I haven’t checked.
one word, headache, I bought my house a little under a year ago and it had been project after project since then.
But! We are actually in escrow on a HomePath property and, except for a delay in opening escrow because it has to go through the Fannie Mae channels, everything is going smoothly so far (knock on wood).
When a property is a HomePath property it means that it is (a) a bank-owned home owned by Fannie Mae, and, (b) the buyer of the property is eligible for the Fannie Mae HomePath mortgage program.
Fannie Mae also has a HomePath renovation financing program for those distressed properties that need a little help before they’re ready to be lived in.
Every now and then when perusing the homes for sale in the area I’d like to live in, I see a description that states it is a Fannie Mae HomePath property.
My big advice for going into escrow on HomePath properties is to fully exercise your due diligence – get that property inspected thoroughly! These banks don’t know a lot of the details on the condition of the property, and they rarely will do repairs before the close of escrow.
In an effort to help banks liquidate their Fannie Mae REO inventory, Fannie Mae came up with the HomePath program.
Also, to make it easier for first-time buyers or buyers without much cash to get in on these deals, "seller contributions" will be allowed in amounts as high as 6 percent of the purchase price, which means that your need for down-payment money could be greatly reduced.
To get these very favorable terms, you’ll need to buy the home "as is." But if you find the perfect home and it needs some renovation, you’ll be able to quality for the HomePath Renovation Mortgage.
Essential How-To-Guides on AOL Real Estate: Home Buying, Selling, Renting, Moving and Home Improvement If you are applying for renovation money, you may need to get an appraisal.

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