Real Estate News – Home Buyers to Get First Look at REO Listing of Fannie Mae
by author on Feb.16, 2010, under Main Articles
According to real estate news, Fannie Mae will be giving preference to home buyers who will actually live in the houses that they will purchase in acquiring its real estate owned (REO) properties. The federally controlled company will also allow local government agencies involved in community development initiatives to look at the REO properties as a way to increase the number of homes with occupants particularly in those areas that have suffered the most from the waves of foreclosures. Meanwhile, investors will only be able to make their choices in the REO homes after the local agencies and owner occupant buyers have made their bids.
According to real estate news, only the bids from public agencies and owner occupant buyers will be entertained by Fannie Mae 15 days after the REO homes had been listed with a participating real estate broker, even if the investors have higher bids. Other kinds of buyers, including investors, will only be able to submit their bids after 15 days.
Real estate news has also revealed that owner occupants, who have been found to be eligible for the neighborhood stabilization initiative of the Obama administration, particularly for assistance in local financing, would benefit from incentives that are not open to investors. One example is that owner occupants would not be required to pay the customary earnest money but may only have to come up with as low as 0 to reserve the property. They will also be given 45 days to close the deal as compared to the usual 30 days.
On the other hand, the real estate news regarding the REO properties of Fannie Mae is not entirely bad for investors. Investors can still take advantage of the Home Path financing plan of Fannie Mae that has various benefits, including no mortgage insurance and appraisal fees. They can finance the loan through their savings, a gift, a loan or a grant and the down payment can be as little as three percent. Even buyers with relatively low credit scores can be accepted. And aside from the low down payment, the mortgage terms can be adjustable rate, fixed rate or interest only.
The impact of the above real estate news on investors is not yet certain. Investors have played a major role in assisting Fannie Mae trim down its list of REO properties and will therefore not likely to neglect the former. Nevertheless, this is an entity that is controlled by the federal government and may have to abide by the programs of the Obama administration.