subject: Fannie Mae Foreclosures, Fulfilling Dreams for Middle to Low-Income Families [print this page] Fannie Mae is a mortgage financing firm operated by the US government. The company's mission is to empower middle- to low-income families to own property by offering an affordable housing loan well within the means of said families. Families need no encouragement to take advantage of this offer but they do need to meet the requirements and conditions set under Fannie Mae foreclosures.
Insights on Fannie Mae Foreclosures
A good way to gain a better understanding of Fannie Mae foreclosed homes is to consult a real estate broker who specializes in foreclosures, and is particularly knowledgeable on the paper work related to Fannie Mae foreclosures.
You need to obtain a pre-approval letter for a home loan, also known as Proof of Funds before you can make an offer for Fannie Mae foreclosures. This letter will come from a bank or other lending institutions and while this is an important requirement it does not guarantee a loan, it only enables Fannie Mae to consider your offer. You may also do away with this letter if you plan to pay cash, which you can back up with your bank statement or a certification from you bank.
You need to be sure that your offer for Fannie Mae foreclosures is reasonable enough and based on the factors affecting the prices of homes. You should survey the value of homes in the neighborhood of the home that you want. Assess the actual condition of the property as well before formulating your offer. Earnest money is likewise needed when making an offer. Also referred to as good faith money, this fund will be held in trust pending the closing of the deal. The amount of the earnest money starts at $1,000 or it can be 10 percent of the value of the property.
Be aware of the per diem clause stipulating that if buyers of Fannie Mae foreclosures take longer to close on their purchase, they can be charged for every day in excess of the original closing date. While there may be quite a number of hoops to jump, the very comfortable terms of paying off a Fannie Mae loan will be well worth it.
Fannie Mae Foreclosures, Fulfilling Dreams for Middle to Low-Income Families
