TO MOVE REO, FANNIE OFFERS DEALS TO CONSUMERS
By Brian Collins
To spark more interest in its massive holdings of foreclosed properties, Fannie Mae is offering to cover up to 3.5% of closings for homeowners who can close by June 30.
“Fannie Mae wants to help more buyers afford to purchase their new home. That is why we are offering up to 3.5% in closing cost assistance for HomePath properties,” the GSE said on Twitter.
Through its HomePath Program, Fannie provides low-down payment financing on sales of REO properties with no requirements for mortgage insurance or appraisals.
Fannie offered closing cost assistance during the fourth quarter of last year for the first time, but the GSE said it still ended up with an inventory of nearly 165,500 REO properties as of December 31.
In the fourth quarter, Fannie recouped 55% of the unpaid principal balance on the defaulted mortgages through the REO sales.
Fannie sells most its REO properties through HomePath, which also provides financing for second homes and investment properties.
Buyers receiving closing cost assistance must certify that they will be owner occupants.