Buy a REO Property From the Federal National Mortgage Association
The Federal National Mortgage Association -- known as Fannie Mae -- has property for sale that it acquired through foreclosure, deed in lieu of foreclosure or forfeiture. If you qualify for a mortgage (or have cash) and do the proper inspections, you may be able to own a home that would normally be out of reach. According to HomePath.com, Fannie Mae has different types of real-estate-owned (REO) properties including single-family homes, condos and townhouses.
Instructions
1. Obtain a prequalification letter from a lender. The prequalification process does not constitute loan approval, but it provides an intent to lend if qualifying information is properly verified. It will indicate the maximum loan amount that may be obtained. Fannie Mae will not accept an offer without this documentation.
2. Review the REO properties Fannie Mae owns on the agency website or with a real estate agent.
3. Contact a real estate agent to schedule showings of real estate owned by Fannie Mae.
4. Arrange for a thorough inspection of the property. Although Fannie Mae discloses any significant hazards the agency is aware of, a property is sold as is. Fannie Mae is not responsible for any repairs that must be made after the sale.
5. Consider any special financing programs that may be available through Fannie Mae. Some, but not all, of the properties owned by Fannie Mae qualify for special financing programs through authorized lenders.
6. Submit an offer to Fannie Mae and finalize the price through a real estate agent. Any real estate agent may submit the offer to the listing agent that has been approved by Fannie Mae.
7. Obtain financing for a loan once an offer has been accepted.
8. Close the sale. The purchaser can select the title, settlement and escrow company that will be used.
Tips Warnings
Fannie Mae will not accept a contingency for the sale of your home in an offer.
To avoid unforeseen costs in the future, use a reputable inspector to fully disclose any repairs that will be needed to the property since all property is sold as is.
Tags: property, federal, national, mortgage, association, real estate, estate agent, real estate agent, Federal National, Federal National Mortgage, Federal National Mortgage Association, Mortgage Association, National Mortgage
