One of the worst possible situations for a homeowner is a foreclosure on a home. As one of the leading financial institutions in the world, Fannie Mae works with mortgage companies and other partners to help homeowners avoid foreclosure. When foreclosures do happen on Fannie Mae home loans, however, Fannie Mae looks to sell the properties in short order to new owners to minimize the negative impact on the community – and this is where the HomePath program comes in.
All properties owned by Fannie Mae are listed on HomePath.com, along with pictures and descriptions. There’s a wide selection of homes in neighborhoods across the country. At Community Lending Group, our programs include HomePath mortgages – here are their basics and a few things to know.
As we noted above, there are certain times where foreclosure on a home is unavoidable. A foreclosure can have significantly damaging effects on a neighborhood or community, though, so Fannie Mae looks to flip them back around as quickly as possible. Many of these homes are move-in ready immediately, while others might need light renovations.
Fannie Mae prefers to sell these homes to buyers who are planning to live in the home themselves, rather than investors who are looking to rent or sell the home. Again, this is all about community impact. They’ll only accept bids from owner occupants for the first 15 days to allow bidding without competition from investors.
For this reason, these homes can be very attractive for first-time homebuyers or people who want a larger home. Fannie Mae also often offers financial incentives like low down payments and flexible mortgage terms on some properties.
By selling these homes primarily to people who will live there and become an ingrained part of the neighborhood, Fannie Mae is making a concerted effort to rebuild communities before they can crumble. This program helps keep communities afloat before too many negative events can pull them apart.
For more information on HomePath homes, or to find out about any of our other home loan services, speak to the experts at Community Lending Group today.