FANNIE MAE Foreclosures for Sale Attract Buyers with Cash for Closing
The Federal National Mortgage Association, also known as Fannie Mae, still has a large portfolio of homes taken back through foreclosures across the country. To try to get them off the books as quickly as possible Fannie Mae is offering a temporary cash incentive for owner-occupied buyers (you don’t have to be a first-time home buyer) of 3.5% of the purchase price. This is a LIMITED TIME OFFER. Buyers must submit their initial offer to Fannie Mae before March 31, 2014 and must close the sale by May 31, 2014 to qualify for the Fannie Mae cash contribution.
NOTE: Investors DO NOT qualify for this program.
FIRST LOOK FOR OWNER-OCCUPIED BUYERS
Fannie Mae is offering owner-occupied purchasers a “First Look” program, designed to allow these purchasers to view their properties before investors or other buyers. Be aware that these homes are not available in all 50 states. Owner-occupied purchasers get first choice during the first 20 days of marketing (some states have longer First Look periods). After that time, all buyers are welcome to bid on these homes, including investors. If you are a bona fide owner-occupied buyer you must commit to having his home be your primary residence for a minimum period of 1 year.
Fannie Mae’s website for First Look properties is www.homepath.com. List prices on these home range from $30,000 to $600,000+. To determine the amount you would receive under this program multiply the sales price by 3.5%. For a home costing $250,000 the cash contribution made by Fannie Mae to the buyer would be $8,750. On a $500,000 home the cash contribution would amount to $21,875. As an owner-occupied purchaser, you will need to fill out a Certification Form found on the homepath website. Be aware that penalties for fraudulent occupant certifications may result in loss of eanest money deposit and a $10,000 penality. Potential buyers will need to be able to qualify for mortgage financing. Once you determine your financing originator you will get prequalified for mortgage financing up to a specific dollar limit at current interest rates. If you have selected the Fannie Mae property you want to buy on the homepath website, your mortgage lender will likely factor in the 3.5% closing cost incentive in calculating your mortgage application. Fannie Mae owned properties are in differing conditions, some many have been renovated before they were listed, or still need considerable repairs. These homes are being sold “as is” and the pricing reflects the condition of the homes. Fannie Mae identifies these properties as “improved” with a Home Depot logo symbol or “repaired” by an independent contractor, signified by a hammer symbol.
FREDDIE MAC Foreclosure Incentive Options for Buyers
Federal Home Loan Mortgage Corporation, known as “Freddie Mac,” also has thousands of foreclosed homes to sell and offers a program for buyers, known as HomeSteps.com. This program offers buyers a $500 allowance toward the purchase of a home warranty policy and has special mortgage financing programs on homes in some areas. If you are a qualifying buyer under this program you could be offered a loan with no mortgage insurance, no appraisal and a 5% maximum down payment.
Learn the Rules of the Game When Thinking About Buying a Fannie Mae or Freddic Mac foreclosed home.
- REO – “Real Estate Owned” by a lending institution and is listed on their Loss Statement as Real Estate Owned. These properties can now be owned by Fannie Mae or Freddic Mac
- Favorable terms for buying foreclosed homes often do not include additional costs for buyers such as inspections, title searches and surveys.
- Your broker can contact the listing agent on your behalf, represent your interests and guide you through the process of buying a foreclosed home.
- Most Fannie Mae and Freddic Mac foreclosed homes are sold to home buyers in individually negotiated transactions where your broker can guide and assist you in your foreclosed home purchase.
Contact Gene Mock, Premier Team, Keller Williams Realty 703-342-8100 for more information about foreclosed home purchases in the Northern Virginia area. Gene is an expert in distressed property sales and can guide you through the foreclosed property buying process.
FANNIE MAE FORECLOSURES FOR SALE ATTRACT BUYERS WITH CASH FOR CLOSING