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A Guide to Purchasing FNMA Foreclosures

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By : John Cutts    99 or more times read
FNMA foreclosures are foreclosed homes which were purchased through a loan secured by Fannie Mae. Upon mortgage default, Fannie Mae covers the amount owed to the lender then repossesses the property to be resold to the market.

With the large inventory of Fannie Mae foreclosures sold in the market, it is understandable why many people opt to look at these properties. However, there are things that you should be aware of when considering buying this type of foreclosures. Buyers who cannot qualify for traditional home loans can apply for a Fannie Mae secured loan to purchase a foreclosure home. There are a few things to consider before you buy FNMA Foreclosures.

Online Search

Buyers can search for Fannie Mae foreclosures online through foreclosure listings sites. These web sites maintain a database of all different types of foreclosed properties across the country including government foreclosures like those of Fannie Mae. These sites will enable users to search for distressed homes by state or price as well. Most will require a subscription to be able to use their services but a small investment towards this resource can go a long way in fulfilling your quest for affordable properties.

Financial Preparation

Purchasing a home is a major leap. If you plan to purchase Fannie Mae foreclosures you need to be able to secure financing. Fannie Mae urges buyers to seek the help of financial advisors first to determine their financial capability for buying a foreclosed property.

There are several government and non-governmental organizations that provide help in this area. Your housing counselor can also point you to the right direction in terms of availing government grants and assistance. The quickest way of finding a counselor is through the local offices of the Department of Housing and Urban Development.

Determining your financial capacity is half the battle won. The other step is to obtain home loan pre-approval from a mortgage provider usually a bank. This preapproval indicates that you have been approved for a loan based on your financial capability. Fannie Mae pays close attention to this document as it signifies the buyer's intention of purchasing a property.

Making Your Offer

Buying FNMA foreclosures requires a written offer. If your offer is in any way incomplete, Fannie Mae will refuse it. The offer should include a standard contract, earnest money, the preapproval document and a Fannie Mae real property purchase addendum.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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