Fannie Mae Announces New Buyer and Seller Incentives for REOs
Original Post Date: September 23, 2010
By: Carrie Bay
With the foreclosure crisis still raging, the nation’s largest mortgage financier has amassed a hefty portfolio of repossessed homes. Fannie Mae took back 68,838 foreclosed properties in the second quarter alone. In the first quarter of this year, the company added 61,929 new REOs to its inventory.
According to Fannie Mae’s latest quarterly report, as of June 30, 2010, the company was holding 129,310 single-family REO properties. In an effort to increase sales of its foreclosed inventory and get these properties – and the costs associated with carrying them – off its books, Fannie Mae is offering additional incentives to buyers and sellers of its REO homes.
On Thursday, the GSE announced a seller assistance incentive for properties listed on the company’s REO website, HomePath.com. Fannie is also expanding the initiative to offer an incentive to real estate agents and brokers.
Qualified homebuyers who will be owner-occupants can receive up to 3.5 percent of the final sales price that can be used toward closing cost assistance, including a home warranty, if available. In addition, selling agents representing owner-occupants will receive a $1,500 bonus.
Eligible offers must be submitted on or after September 23, 2010, and must close by December 31, 2010. The sale must close within 60 days of the offer being accepted.
“More than eighty-seven thousand families have purchased HomePath properties in the first half of 2010-nearly double the number of Fannie Mae foreclosed properties sold in the first half of 2009,” said Terry Edwards, EVP of Fannie Mae’s Credit Portfolio Management. “We continue to look for ways to stabilize neighborhoods and offer incentives to qualified buyers who will occupy these properties over the long-term and help support their communities.”
HomePath properties are owned by Fannie Mae and include a wide selection of homes, including single-family homes, condominiums, and town houses. HomePath properties may also be eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing.