Dec 1, 2014
Fannie Mae and Freddie Mac directed to change policies relating to the sale of real estate owned (REO) properties in their current inventory by the Federal Housing Finance Agency (FHFA). The change requires real estate owned properties (REOs) to be sold to any qualified purchasers at the property’s fair market value.
Under the new policy foreclosed homeowners or a third-party purchasing on their behalf may do so at the value that applies to other purchasers. Prior to this change foreclosed homeowners or a third-party buying on owners behalf had to pay the entire amount owed on the mortgage.
This policy change is limited to Fannie Mae and Freddie Mac existing single family REO inventory of approximately 121,000 properties. Property exclusion may apply on a case by case basis. The purchase of an REO property for the benefit of the previous owner must also still be intended for use by that owner as their principal place of residence.
For more information on purchasing REOs contact: iRealtyServices
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.6 trillion in funding for the U.S. mortgage markets and financial institutions.
Their mission is to ensure that Fannie Mae, Freddie Mac and the Federal Home Loan Bank System are operating in a safe and sound manner so that they can serve as a reliable source of liquidity and funding for housing finance and community investment.
Source FHFA Media Release