Fannie Mae and Freddie Mac Foreclosure Homes
U.S. government encourages home ownership by providing funds from Fannie Mae (Federal Mortgage Association – FNMA) and Freddie Mac (Federal Home Loan Mortgage Corporation – FHLMC). Ginnie Mae (Government National Mortgage Association GNMA) is another agency in the same category.
Huge inventory of foreclosure properties directly from the government agencies
In 2008, following the financial crisis in financial markets, the U.S. government took control of these organizations. These organizations buy residential mortgages from the banks and other lenders and convert them into securities for investors. Especially after the financial crisis in September 2008, these organizations had lots of foreclosure properties. These foreclosed properties are not necessarily Housing and Urban Development (HUD) and Veterans Administration (VA) foreclosure homes.
How can you find Fannie Mae and Freddie Mac foreclosed homes?
You can find Fannie Mae REO listing that you can search by entering your zip code. Freddie Mac has a website called Home Steps containing opportunities for home buyers, foreclosure investors, and real estate agents to help you.
Home Steps has an online facilitator called Home Detective to inform you when an entry is made for a foreclosed house having the feature that you are looking for. You can always change the location and features that you are interested in.
Financing Fannie Mae and Freddie Mac foreclosure homes
Freddie Mac’s Home Steps has a listing of local mortgage lenders that you may contact for your foreclosure purchase.
You can buy Fannie Mae and Freddie Mac foreclosure homes for investment, flipping, and selling otherwise. This is a major advantage for foreclosure investors and buyers who are interested in selling or renting the properties. As you will recall, you can buy HUD, FHA, and VA foreclosure home if you commit yourself to use it as your residence at least one year.