Fannie Mae Foreclosures

Fannie Mae foreclosures are generally handled through the same channels as all other foreclosures, with one main difference - it is generally easier for Fannie Mae mortgage holders to obtain help to keep and /or stay in their home since such lengths have been gone to in the first place to qualify them for home ownership. There is a vested interest in seeing these homeowners through to a successful payoff of their loan.

The Fannie Mae housing program was developed to allow people to purchase a house with little to no money down.

When these homeowners face foreclosure, many give up immediately and move out of their homes, leaving them to be foreclosed on and resold. Their house wends up listed in the local papers or on internet sites as a foreclosed property and is auctioned off - often for much less than the house is worth, even in a depressed market.

Foreclosure is not an immediate action, however, and can be staved off if the lines of communication are kept open. There are many other avenues which should be explored and options to be exhausted before giving in and admitting ultimate defeat.

The key is to start taking action sooner rather than later and forestall foreclosure action as long as possible.

If no means are available to enable keeping the house, rental options sometimes offered as a way to avoid a family having to vacate the premises or become homeless.

For homebuyers or real estate 'flippers' in the market, foreclosures from Fannie Mae homebuyers are in great demand - usually these homes have been thoroughly inspected, are in good repair and can be turned around and sold at a profit.

Fannie Mae is not a real estate company, but a privatized lender with federal backing. The company is NOT interested in taking homes away from homeowners nor in selling them. In fact, they would be much happier to leave the home in the hands of the original buyer and collect the balance of the loan.

Fannie Mae was actually founded in 1968 as a GSE - Government Sponsored Enterprise - as part of FDR's 'New Deal'. The idea was and is to allow lower income individuals and families to obtain mortgages at a low rate of interest. Once a buyer is qualified, it is in the company's best interest to keep the loan valid by working with the buyer in times of financial hardship.

Homeowners who purchased Fannie Mae homes are generally given special consideration - forbearance is given over the holiday season to avoid foreclosures falling during that time, and there are many ways to work around financial difficulties to keep the mortgage on track. Opening up communication with the lender at the first sign of trouble on the horizon is the best way to avoid serious trouble.

An attorney familiar with mortgage law can help buyers avoid Fannie Mae foreclosures by negotiating refinancing , repayment plans or mortgage loan modification. If the worst happens and foreclosure is carried out, options even exist to allow the former homeowner to remain in their house as a renter.

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