Purchasing Fannie Mae Foreclosures- By: Karim El Sheikh
Fannie Mae was created to purchase mortgages and package them on the open market as mortgage-backed securities to investors. When the financial crisis and housing market bubble burst, the government took over Fannie Mae. Fannie Mae acquires title to the properties that lenders foreclose on when borrowers default and offers those homes for sale. The Fannie Mae properties are listed with local Realtors® who market them by placing them in the MLS and advertising them on the Internet, in newspapers and other places.
Information is available on the Internet or at the Fannie Mae HomePath website if you are interested in the Fannie Mae HomePath financing programs. Otherwise, talk to your mortgage broker or lender to find a loan product that works for your financial situation.
Making an Offer
For the first 15 days, offers from owner occupant buyers have priority on Fannie Mae foreclosures. Offers from investors will be considered after the first 15-day “First Look” list period. An earnest money deposit is required. Check with your Realtor® as to what is customary. Also, you will need to present proof of funds if you are paying cash or a pre-qualified letter from your lender if you are obtaining financing.
Fannie Mae uses a residential purchase contract specific to the state real estate laws where the property is located and has its own contract addendums. Your Realtor® will be able to download the special Fannie Mae addendum forms right from listing on the MLS or they can be obtained from Fannie Mae’s listing agent.
Fannie Mae must disclose any hazards they are aware of at the property. However, since Fannie Mae acquires the property through lenders who have foreclosed, they may not be aware of problems with the property so it is recommended that you have a home inspection to find out the property condition.
Your Realtor® will write and present the offer to Fannie Mae on your behalf. Expect it could take a few days and up to a week for the Fannie Mae representative to get back to you. If there are multiple offers on the property, Fannie Mae must advise your Realtor®. They can either counter to one or both offers. Cash offers always have priority so you need to be competitive when there is a multiple offer.
Many times the Fannie Mae homes sell for full asking price or over asking when there is a multiple offer. If your offer is selected, you must comply with the contract contingency periods. It is also recommended you purchase a home warranty plan, which is like an insurance policy in case something breaks in the home after closing. There are exclusions so you need to read the home warranty plan carefully.
Fannie Mae foreclosures offer investors/buyers the opportunity to purchase a home at bargain prices anywhere from 30 to 50 percent off market value so you know you are getting a property with built-in equity. If you do find a Fannie Mae property that you are interested in, you should make an offer right away because there is a lot of competition for these homes right now. They sell quickly, and you don’t want to miss such a bargain opportunity!
Article Source : http://www.realestateproarticles.com/
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