How to Use Fannie Mae Foreclosure Listings

Fannie Mae Foreclosure Listings are easy to find at the Home Path website (Link at the bottom of this page). Figuring out how to maximize that information is another story. This article will help you how to use Fannie Mae to find the best foreclosure deals (and avoid the worst) to advance your financial future.

Difficulty: Moderately Challenging

Instructions

1. 
    

   CHOOSE A TARGET NEIGHBORHOOD.
   
   You need to become an expert on an area in terms of home values. PIck an area that will fit these characteristics:
   - Close to where you live for convenience
   - Growing area
   - High demand for housing
   - A place people will want to live

2. GET TO KNOW YOUR FORECLOSURE TARGET NEIGHBORHOOD.
   
   Drive through the neighborhood regularly. Notice the level of pride of ownership, the size of homes, the maintenance of the yards and properties, etc. Pick up any for sale fliers you see. Call the numbers listed if there is no flier. The goal is to get an idea of the average cost per room and cost per square foot in that neighborhood.

3. 
    
   Find Your Foreclosure

   PERIODICALLY CHECK FANNIE MAE'S FORECLOSURE SITE FOR TARGET HOMES.
   
   Home path is Fannie Mae's home foreclosure site. There you can see a push pin map of any foreclosures in your target neighborhood. It will tell you the status of the foreclosure: newly listed, active, or under contract. It will tell you the official assessed value of the home as well as the sales value.

4. USE FANNIE MAE'S INFORMATION TO SCREEN HOMES.
   
   Determine your target and stick with it. Compare the official assessed value to the value offered. Check on the county assessor's website to find any other recent sales in the area to compare prices. Get a feel for the kind of home that is a runaway steal even with fixes. You can fix a lot of things for $30,000 after all.

5. HAVE A REALTOR SHOW YOU ANY INTERESTING FORECLOSURES.
   
   Why do you need a realtor? You want one, even though you don't need one. You don't pay the buying realtor, the seller (the government in this case) does. A realtor can give you professional advice, handle all the paper work, and be around a month from now to help you with any emerging problems.

6. BUY HOMES THAT FIT YOUR PURPOSES AT 30% OFF OR LESS.
   
   Depending on the cost of the home, 30% will give you more than enough cushion to handle new carpet, paint, and any inspection details. Always make your first offer below the listed price unless the listed price is so low the land is worth that much. 2-3 bedroom homes make great rental properties. Larger homes can give greater upside potential at sale.
   
   See more tips and warnings below.

Tips & Warnings

• Get a good thorough inspection with pictures, and written report.
• Walk through the home with the inspector if at all possible.
• See related resources and articles on this page for further help.
• Avoid any foreclosure homes with structural damage unless you have the budget and stomach to fix it.

[dorigillman]

on 8/10/2009 as usual, a great article.

[botticelli728]

on 8/10/2009 Interesting stuff! 5*