Fannie Mae Foreclosures

The Federal National Mortgage Association, or Fannie Mae, works with a number of organizations to help homeowners who are having difficulty meeting their mortgage payments. As much as they are able, they help homeowners avoid foreclosure and help them stay in their homes. However, sometimes there is simply no way to avoid foreclosure, and homes underwritten by Fannie Mae end up foreclosed upon and up for sale.

When Fannie Mae foreclosures go up for sale, they are sold through Fannie Mae's HomePath program. HomePath also offers special financing programs for those looking to purchase a foreclosure either as a private residence or in order to renovate the home for future sale. Some special requirements exist for purchasing a Fannie Mae foreclosure. Those interested in the program should consult with a Realtor or other real estate professional in their area for detailed information.

In November of 2009, Fannie Mae developed another program to help owners whose homes are in danger of foreclosure. Called the Deed for Lease program, it allows owners to lease their homes back from Fannie Mae for at least a year. Through this program, Fannie Mae hopes to keep more people in their homes, keeping neighborhoods intact and allowing families to avoid being disrupted by having to move. The program is especially useful for those who find their homes worth less than the amount remaining on their mortgage. The program is generally offered to those who have already tried other measures such as requesting a loan modification.

Fannie Mae foreclosures can be a good investment for those who wish to renovate a home and resell it. Sometimes Fannie Mae makes repairs to the homes, but all are sold "as is," so additional work might be necessary after the home is purchased. Fannie Mae sells these homes through local real estate professionals, and provides as much information as is available about the homes to any prospective buyers. Fannie Mae's HomePath Mortgage and HomePath Renovation Mortgage programs offer financing options, but homes can be purchased with mortgages from other institutions as well.