For homebuyers, the experience of buying, or even just the idea of purchasing a house can be very exciting, overwhelming, and most of the time very confusing. With the growth of the foreclosure market and the influx of various information, homebuyers are left confused on which property to purchase. This kind of foreclosures are not much different from any other foreclosures. You just need to make sure it is the right home for you. Gathering pertinent information is the key to finding that ideal home.
What is Fannie Mae?
The Federal National Mortgage Association, more popularly known as Fannie Mae, is a corporation established in 1968 by the U.S. Congress. The Corporation was first advanced during the Great Depression.
It was during this period that a considerable number of Americans lost their homes because of they could not afford to pay their mortgage loans. The primary role of Fannie is to acquire mortgage loans in default to allow lending institutions to always have sufficient funds to loan to homebuyers, adding liquidity to the mortgage market. The Federal Housing Financial Enterprises Safety and Soundness Act of 1992 gave the responsibility to help low-income homebuyers.
The company sets the guidelines for the loans that it accepts for purchase. This allows the organization to provide guarantee to mortgage-backed securities it issues. Mortgages that follow the guidelines are called conforming loans, while those that do not are called non-conforming loans.
What are Fannie Mae foreclosures?
The Corp's objective is to make property ownership more accessible to Americans. It is a good place to start for finding foreclosure homes at discounted prices. With the primary aim of recovering the money quickly, most Fannie Mae foreclosures are priced way below the property's market value. This allows the organization to offer low-cost homes to homebuyers. Foreclosed government properties often include financial programs to help make foreclosed homes more affordable.