Fannie Mae Foreclosures For Owner-Occupants

It often overlook inventory of homes for first-time homebuyers are government foreclosures owed by the area’s agencies under the umbrella of Uncle Sam. Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development (HUD) have a consistent supply of homes that are marketed to owner occupants before investors can make a bid.

For years, the three agencies have had a process in place that makes it mandatory that offers from potential owner- occupants, including individuals buying vacation homes, are considered for specified time after the listing is made available before investors can make a bid for the home.

Take a look at one of the most popular government foreclosures program available to owner-occupants.

The “First-Look Program”

After the wave of foreclosures that hit the country following the housingmarket crashed in 2006. In an effort to stabilize hard-hit neighborhoods, Fannie Mae established innovative program call First Look. The program is not only available to individuals who intend occupied home as their primary residence, but some non-for profit and public entities can also submit offers during this specified marketing.

The First Look period is the first 15 days once the property has been listed on the agency’s website at HomePath.com. In Nevada, buyers can submit bids on these properties for 30 days without competition from investors. If you go to the website, you’ll see that the properties included in the first look inventory have a countdown clock on the property details page. The clock displays the number of days remaining for bids to be accepted from eligible purchasers.

Once the  timeframe for owner-occupants bidding on Fannie Mae foreclosures expires, investors can submit offers that will be considered along with other offers for the property.

Financing HomePath Properties

If you need money to buy one of these homes, check with local and state housing authorities to find out what financing programs are available to assist you. That only can you find programs that may provide down payment assistance but you can also receive counseling and other resources if you qualify to buy one of the foreclosed homes.

For example, some not for profit groups and housing authorities are authorized to offer a Neighborhood Stabilization Program sponsored by HUD. These special financing programs designed for homebuyers who are interested in buying in neighborhoods that have been hit hard by foreclosures.

Financial Support for Foreclosures Buyers

Fannie Mae received a lot of negative publicity during the foreclosure crisis because many housing advocates believe the agency did not do enough to prevent over 4 million Americans from losing their homes. The agency now supports homebuyers using public funds in a variety of ways:

  • Earnest money deposits – Buyers that qualify to use public funds only have to make a $500 down payment. In the case of public entities, the earnest money requirement is waived entirely.
  • Renegotiate offer – If your offer which includes the use of NSP funds gets accepted, you may be able to renegotiate the offer made private property after you get a Uniform Residential Appraisal value for the foreclosures, which is required as part of the transaction.
  • Closing period – When using public funds, once your offer is accepted you have a standard timeframe of 45 days to obtain the necessary financing to close the deal.

To find out more about this program, contact a broker in your area who is approved to handle government foreclosures, including Fannie Mae foreclosures.

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