filed under foreclosures national news
Both Fannie Mae and Freddie Mac have massive numbers of properties taken back through foreclosures. Fannie Mae had 153,549 of them at the end of the first quarter, and Freddie Mac owned 65,174. They need to quickly find new owners.
Both have now begun time-limited sales campaigns with significant incentives for new owner-occupant purchasers, and are now offering to pay up to 3.5 percent of the price of the house toward buyers’ closing costs.
Fannie and Freddie both do repairs to bring houses up to what they believe are marketable standards, but all homes are sold as is. Fannie also has what it calls a “renovation mortgage” option that provides additional mortgage amounts to cover fix-ups. Fannie’s program even offers mortgage money to help finance purchases, sometimes with as little as a 3 percent down payment. Freddie does not offer special mortgage financing for buyers during the sale period, but has other inducements, including two-year home warranties and 30 percent discounts on appliances. There's even an extra $1,200 cash for the real estate agent.
Fannie’s program covers properties on which contracts are accepted and close no later than Oct. 31, while Freddie’s sale requires contracts no later than July 31 and closings by Sept. 30.
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