How to Buy a Fannie Mae Property

What exactly is fannie mae? (FNMA) Fannie Mae, is the Federal National Mortgage Association. It was a privately owned government sponsored enterprise. With authorization to make loans and or loan guarantees. As of 2008 Fannie Mae and Freddie Mac owned or guaranteed 12 Trillion Dollars worth of inventory in the mortgage market. The Sub-prime crisis caused all other loan resources to cease. So 80% of new mortgages in 2008 were either Fannie Mae or Freddie Mac backed. There are two different options in buying Fannie Mae owned loans: 1. A property is in foreclosure. 2. It is a deed in lieu of foreclosure transaction. Fannie Mae's goal is to sell properties that are in foreclosure in a timely manner. Fannie Mae homes that are offered for sale are sold through real estate brokers. The MLS multiple listing search engine used by realtor's will list the properties being offered for sale. It will show pending, sold and active listings. This can also be a useful tool in determining the current market value for homes in the same area. Get your realtor to conduct a search with similar area, square footage, bedrooms, baths, garage , and similar lot size and amenities. This will help in determining resale values. Your realtor can present your offer to the listing agent. The listing agent will then present your offer to Fannie Mae. If your offer is accepted, you must have a lender present your loan request to Fannie Mae or other loan institutions. Fannie Mae does not offer loans direct to consumers.

  • Realtors can access Fannie Mae Homes through the MLS System
  • You can use your own Realtor in presenting offers to the listing agent representing Fannie Mae

Fannie Mae Mortgages are they changing hands? Yes, the federal government has seized Fannie Mae and Freddie Mac. This action could cost the tax payers trillions of dollars. But in the end the government is hoping to reap value in the long term securities. They hope to strengthen the U.S Hosing market and to promote stability in the financial market. Mortgage rates are expected to be lowered in the short term. After the federal action Sunday. Mortgage rates lowered in California a full percentage point. You can still find fannie mae homes for sale on the site listed below. When you enter you select which state and search properties. It is easy and it shows the agent selected for the listing. Remember the agent works with Fannie Mae in presenting the offer to them. This doesn't mean they can't represent you also. Just make sure you are directing them in what you would like presented. As far as your offer in terms of the purchase price you want to offer. If you feel you are not being represented fairly tell them you have another agent you can use in your behalf if necessary. They will most likely work in your behalf , they make more commission, if they are the sole agent. This depends on the state law in your area. If the agent can represent the purchaser and the seller.

  • The federal Government has seized Fannie Mae
  • Value in the long term securities
  • Mortgage rates expected to be lowered (short term)

Website: Resources:                    (HUD)              (Federal Deposit Insurance Corporation)                  (USDA Department of Agricuture RD)

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Talha Qadri
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Posted on Feb 1, 2012