As a prospective home buyer, you have many options in your search to find an affordable home. One of those options today is the purchase of a home that has been foreclosed and currently is owned by Fannie Mae.
What types of houses are available? How old are these homes?
Generally, a wide selection of homes, including single family homes, condominiums, and townhouses, located in a variety of neighborhoods throughout a community are available. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.
Are there cautions to keep in mind when considering purchase of a foreclosed home?
Yes. You want to be sure that the condition of the property is accurately represented. If the property needs repair, you need to know the costs of those repairs, and whether the condition of the property will keep you from getting a mortgage loan to complete the sale. You also want the seller to be able to close the transaction in a timely manner and provide you with clear title when you become the owner.
What about costs? I'm not sure that we can afford a home.
Every buyer's situation is different. Fannie Mae's "Opening the Door to a Home of Your Own" or "knowing and Understanding your Credit" guides can help you decide if you're ready to buy a home. These will help you decide if you are ready and can afford to buy a home and points you in the direction you need to get started. In addition, you can 'pre qualify' for a mortgage with a local mortgage lender. The lender will assess your ability to pay for a home by calculating the monthly costs of homeownership and comparing them to your current income. Generally, Fannie Mae will ask you to pre-qualify as part of your offer to buy a Fannie Mae owned home.
How do I find out what homes Fannie Mae has available for sale in my community?
Fannie Mae owned homes are sold through local real estate brokers. All Fannie Mae owned homes are listed in the local Multiple Listing System (MLS) accessible to any real estate broker. You can obtain a listing of properties by going to Fannie Mae. You should call the listed real estate agent or the agent of your choice for more information or to make an offer on a property that interests you.
I'm working with a real estate agent who seems right for me. I've checked out some Fannie Mae owned homes that look interesting, and I'm ready to make an offer on a particular home. What happens next?
First, you present your offer to the listing broker who will present it to Fannie Mae for consideration. Fannie Mae will do one of three things in response to your offer. Through the listing broker, Fannie Mae may accept your offer, reject your offer, or make a "counter offer." This counter offer begins the process of negotiating for a selling price agreed to by both you and Fannie Mae. When the sales price is agreed upon, you will sign a "purchase and sales agreement" and begin the process of obtaining mortgage financing to purchase the home.
What is Fannie Mae?
Fannie Mae started out over 50 years ago as the Federal National Mortgage Association. It is a private, shareholder owned company that works to make sure mortgage money is available for people in communities all across America. Fannie Mae doesn't lend money directly to home buyers, but by investing in the mortgages lenders create, Fannie Mae provides a constant source of mortgage funds. In fact, helping lenders make mortgages is Fannie Mae's only business