How to Buy a Foreclosed House From Fannie Mae

If you are looking to purchase a foreclosed property, Fannie Mae is a government-sponsored enterprise source. Fannie Mae contributes to neighborhood stabilization, offering a "First Look" period to potential homeowners. During the first 15 days a property is listed through Fannie Mae, it is not open to investor offers. As with purchasing any home, you will need to carefully follow the proper procedure to ensure a smooth sale.

Instructions

1. Visit the Home Path website to view Fannie Mae foreclosed properties. Home Path is the website owned by Fannie Mae that allows buyers to locate exclusive foreclosures. Select your state to browse listings near you.

2. Contact a real estate agent. Fannie Mae encourages prospective buyers to work with a real estate agent to facilitate sales. The agent can assist you with viewing properties and submitting an offer.

3. Obtain financing. You can contact the bank of your choice for a loan pre-approval. Inform the lender you are interested in purchasing a Fannie Mae foreclosed property. Certain properties listed on the Home Path website are eligible for special financing. The financing program offers a low down payment, flexible mortgage terms and fewer fees. Locate a lender near you through the resource section of the Home Path site.

4. View the property you're interested in. Your agent can schedule a time for you to view the foreclosure. If you want to proceed with the buying process after seeing the home, hire an inspector and a contractor to determine necessary repairs and the associated costs.

5. Meet with your agent to draw up a contract and submit an offer. Your real estate agent can help you determine a fair offer to submit to Fannie Mae. Consider the median sale price of homes in the area and the cost of any needed repairs when making your offer. You will need to sign the contract and provide a copy of your pre-approval letter from the lender.

References

• Home Path: Buyer's Guide for a Fannie Mae Owned Home
• The Mortgage Professor's Website: What Do Fannie Mae and Freddie Mac Do?
• Fannie Mae: Fannie Mae Announces New Incentives for HomePath Properties
• Home Path: Home Path Financing

Resources

• Home Path: Map Search