Fannie Mae Foreclosures are homes that have been repossessed by the entity, Fannie Mae. Fannie Mae is not a lending institution, per se. They are a government sponsored entity (GSE) that securitizes mortgages made by other lenders so that those lenders can free up their funds to make additional loans. So, technically, their foreclosures are not bank owned homes for sale, but they are repossessed homes for sale. Just like a lender that poses a mortgage which is delinquent, when Fannie Mae “possesses a mortgage” that is delinquent, they foreclose as well. The result is a “Fannie Mae Foreclosure”. These homes can often be purchased at a fraction of the fair market value price, allowing investors to take advantage of these repossessed homes for sale.
Where can I find a list of homes foreclosed on by Fannie Mae?
Fannie Mae does not market their own foreclosures. However, they do have an excellent website which lists all the homes they currently are selling. This website is Homepath.
Web site or Realtor?
Using this website, you can search for homes in a specific zip code, but you can also use the “Property Alerts” tab to signup for notices on when homes in a certain area become available.
Because Fannie Mae Homes will always eventually be listed with a real estate agent, there is no great advantage to locating the home yourself going through the HomePath Website, but using the alert system may get you the information slightly faster than waiting for a realtor to be alerted and to then alert you. If you prefer to go through a realtor and allow them to do some of the footwork for you, you may want to look at the list of realtors specializing in foreclosures that are recommended by your peers.