The answer can be boiled down to THREE things: 1) 3% down, 2) attention to detail, and 3) FRUSTRATION RESISTANCE!
There are some truly fantastic deals being offered via the MLS right now that happen to be foreclosures held by Fannie Mae. The process has been streamlined and transactions close more quickly than in the past. So what are the potential pitfalls here? Keep in mind that after a foreclosure, Fannie Mae is now the seller. But since no one from Fannie Mae ever lived in the property, it's certain that we'll have no legal disclosure with any meaningful information about the history of the property. The sale is "as-is," making your home inspection more important than ever.
What else can go wrong? Fannie Mae has a host of extra guidelines that they adhere to very strictly. A good example involves contract dates - - - - if Fannie Mae says that four days notice are required to obtain a contract extension, they mean FOUR DAYS NOTICE. Anything less could jeopardize your earnest money.
Keep in mind that Fannie Mae foreclosures are some of the only properties eligible for 3% financing out there - - - while still being able to be purchased through a conventional MLS process, instead of a complicated bidding process, i.e. HUD homes. That alone can outweight the negatives for most homebuyers.
What specific questions do you have for me about Fannie Mae foreclosures? Email me at Bradley@BradleyPounds.com or call (512) 736-3353 to talk about your options.