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
is currently owned by Fannie Mae.
We provide the following questions and answers to help you in your search.
What types of houses are available? – How old are these homes?
Generally, a wide selection of homes, including single-family homes, condominiums, and
town houses – located in a variety of neighborhoods throughout a community are available.
The number, types, and the sales prices of housing may vary substantially. 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 a 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. 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.
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 by any real estate
broker. You can call the agent of your choice for more information and to find out what
properties are available in your area.
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 is a private, shareholder-owned company that works to make sure mortgage
money is available for people in communities all across America. We don’t lend money
directly to home buyers, but by investing in the mortgages lenders create, Fannie Mae
provides a constant source of mortgage funds.