How to Find Fannie Mae Foreclosures

Fannie Mae foreclosures are just like other homes. The only difference is that they are sold at a more affordable price to the buyer. Homebuyers are able to pay a lower down payment for their homes through a Fannie Mae mortgage. However, as one of the largest providers of mortgages in the United States, the company acquires many defaulted properties. This is because not everyone is able to afford a home in the long term. Fortunately, these foreclosed homes are able to be resold at an equally low rate.

There are many ways to find a Fannie Mae foreclosure if you are interested in buying a home for less. The Federal National Mortgage Association sells many of these homes through approved real estate agents and brokers. These professionals are the first to receive listings and property updates. Any prospective home buyer is required to make an offer through an approved listing agent if he or she wants to make a purchase. However, the association also provides listings directly through the Fannie Mae HomeReady program.

Real Estate Agents

To make an offer on a Fannie Mae foreclosure property, buyers can only do so through an approved listing agent. These agents are realtors and brokers. Real estate agents share properties through a system called Multiple Listing Service (MLS). The MLS is a database of the available properties on the market. Agents must be part of a local MLS to view and share each other’s listings.

Working with a listing agent makes the process of finding a Fannie Mae foreclosure property simpler. Realtors approved to sell Fannie Mae homes are knowledgeable about what is involved in buying and paying for a foreclosed home. Real estate agents are familiar with FNMA and each of their properties. Real estate agents are able to offer home repair and pricing advice. Listing agents are extremely valuable, especially when you are looking for a Fannie Mae REO property. While a foreclosed home might seem like a great deal, some homes are in worse conditions than others, and making offers to banks is not always a smooth process. Real estate agents can help you not only find a suitable home but also offer useful knowledge about the complex process of buying a Fannie Mae home.

Fannie Mae HomePath

The Fannie Mae HomePath resource is an essential tool for homebuyers looking for foreclosed homes. HomePath homes were originally bought using a Fannie Mae home loan. Unfortunately, the buyer could not afford the long-term commitment, and the company reclaimed full ownership of the property. Now, the homes are listed through an online database of foreclosed homes through HomePath.

HomePath is a search tool created directly by Fannie Mae. It contains listings of Fannie Mae Homepath properties throughout the country. The tool is available to regular homebuyers, agents, investors and even non-profit organizations. It is one of the most trustworthy tools when it comes to finding Fannie Mae foreclosures. Every home is a Fannie Mae-owned property and every listing agent is an approved home seller.

Each listing is comprehensive. Fannie Mae HomePath provides many more details besides the address of the property, pictures and the price. These details include the average rent in the area, information about local schools and the community, property tax and homeowner association (HOA) fees and specifics about parking, heating and air condition and utilities. The listing real estate agent’s information is also included, as well as the MLS and REA identification numbers.

Learn more about finding a foreclosed home with our comprehensive guide.

Public Listings

There are many online resources for finding a Fannie Mae foreclosure. While real estate agents are trusted sources for the most up-to-date and accurate information regarding Fannie Mae foreclosures, there are other resources online that pool together listings from different sources. There are many popular sites online that provide different kinds of listings. Some are more focused on local properties while others display nationwide properties. On these sites, prospective buyers are able to run advanced searches and filter their results to show only certain kinds of Fannie Mae homes like a two-bedroom home with a one-and-a-half bathrooms.

The benefit of using public listings to conduct your Fannie Mae foreclosure search is that you can browse through thousands of options anywhere and on your own time. The downside is that you do not know if a property is a Fannie Mae foreclosure or not. While FNMA sells more than half of the mortgages in the United States and it is highly likely that a property is a Fannie Mae home, you would have to contact a realtor to be sure.

Public Auctions

Fannie Mae foreclosures must go through an auction prior to being put on the housing market. You hear about auctions less frequently because they only occur once for every foreclosed house. Also, they often finish quickly. For example, some auctions do not last more than 10 minutes. Investors and regular homebuyers alike participate in these events, so competition can be fierce, depending on the property.

While this is one option to obtain a foreclosed Fannie Mae home, you must understand how to handle an auction. The most important thing at an auction is being prepared. This means knowing which property or properties you want to bid on, ensuring that property was originally using a Fannie Mae mortgage, having cash or a money order on hand and finding any liens attached to the property. It is also wise to visit the property in person before the auction. While you might not be able to tour the inside, viewing the outside and neighborhood might help determine of the property is the right one for you. All in all, buying Fannie Mae foreclosures can be risky. These purchases require research and time beforehand, as well a substantial sum of money paid up front. These homes can also have hidden fees if you do not do comprehensive research.

Download our in-depth guide for more information on public auctions and finding a foreclosed listing.

Foreclosure Listing Scams

Foreclosed home are owned by lenders and are best processed with knowledgeable realtors. The most trustworthy Fannie Mae foreclosure listings are found through the sources mentioned above. Third-party sales such as those posted by homeowners themselves are not encouraged. Direct sources like banks and realtors are your best bet for legitimate affordable home listings, especially for foreclosures.

What is Fannie Mae?

The Federal National Mortgage Association (Fannie Mae) provides affordable housing finance options for homebuyers and renters. Fannie Mae does not provide original mortgages. Rather, the organization purchases existing mortgages and guarantees them with government sponsorship. Fannie Mae mortgages have a fixed rate and can have a lifespan as long as 30 years.

Who is eligible for Fannie Mae?

Fannie Mae guarantees multi-family and single-family mortgages and loans. To qualify for either type of loan, an applicant must have an income lower than the local average, and the property he or she wants to buy must be worth less than the federal maximum. Further, applicants must have a credit score above 620. However, the minimum required credit score may change depending on how many properties the applicant plans to purchase.