Fannie Mae Suspending Foreclosures Through January 2009

Fannie Mae just announced that it will be suspending foreclosure sales through January 9, 2009 in order to focus on its streamlined modification program, which it announced on November 11. 

Here's an excerpt from the press release:

"The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with mortgage servicers to implement the streamlined modification program scheduled to launch December 15. Foreclosure attorneys and loan servicers will be instructed to use the additional time to reach out to borrowers who have defaulted on their loans and continue to pursue workout options. The initiative applies to loans owned or securitized by Fannie Mae.

The streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy.

Fannie Mae will be working with foreclosure attorneys and servicers to reach out to the more than 10,000 borrowers the company estimates would be affected during this period. Borrowers who have Fannie Mae loans that are scheduled for foreclosure between November 26, 2008 and January 9, 2009, will be contacted directly by the attorney handling the foreclosure. If the home is occupied, Fannie Mae has instructed servicers and attorneys to suspend the foreclosure."

This is good news for the most troubled of home owners with Fannie Mae loans. This is also good news for the future of the foreclosure real estate market should some of these folks work out their loans and avoid foreclosure because it will help diminish some of the future bank-owned/foreclosure real estate market inventory. Though how much of an effect it will truly have is yet to be seen.

Hat tip to RealEstateZebra.

How To Buy Fannie Mae-Owned Properties With Zero Money Down, No Mortgage Insurance

A little-known fact is that you can buy Fannie Mae-owned foreclosed properties with as little as zero money down with no Mortgage Insurance. Fannie Mae is selling their properties through a program called "HomePath" and they're selling them for 50 to 75 percent of what they were worth just a few years ago.

Fannie Mae also offers a program called "ExpressPath" which is a financing option provided by Fannie through a Fannie-approved lender. ExpressPath financing can provide qualified borrowers up to 100% financing on select Fannie Mae properties. 

How do you search for Fannie-owned properties? The brokerage firm I'm a part of, Market Advantage Real Estate, has made it easy for you. They've added a search feature that allows you to search for Fannie Mae-owned homes only. This will help filter out the "noise" and allow you to only search those properties owned by Fannie Mae. (The search feature may not be pretty, but we were focused on getting a functional resource out to consumers ASAP)

How do you find out more about ExpressPath financing? Just click here.

If you have questions regarding the process, don't hesitate to contact me directly or check out the FAQ section on Fannie's web site. Here's an excerpt:

How is buying a home owned or managed by Fannie Mae different from other home purchases?

Usually, when you buy a home, you deal with a seller who lives in the home. However, the homes sold by Fannie Mae are unoccupied. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.

Can I buy a house directly from Fannie Mae without going through a real estate sales professional?

No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.

If you'd like more information about any of the Fannie Mae-owned properties you come across in your search or have questions about how the process works, please email or call me - danilo.bogdanovic@gmail.com - 703.582.5900.

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