Unofficial Fannie Mae First Look Program Poster
The mortgage lender Fannie Mae is now using a program called “First Look” which doesn’t allow investors to bid on the lenders foreclosed homes for the first 15 days that they are on the market. One of the reasons that this program is being implemented is because first-time home buyers across the nation are losing out on the best foreclosed homes to investors who have the means to buy them up immediately in cash.
The United States Department of Housing and Urban Development’s Neighborhood Stabilization Program is making funds available in cities to help first-time buyers purchase foreclosure homes and make them livable by using some of the funds to fix these homes up. In the cities that have had funding given to them by the Neighborhood Stabilization Program, a typical first-time homebuyer will have access to at least $10,000 for a down payment and often additional monies for closing costs.
Despite the funding made available by the Neighborhood Stabilization Program, and first-time buyers offering more for the homes than investors, the banks were still taking the investors lower offers because they were able to pay in cash. That’s were the “First Look” program comes in.
The “First Look” program went into effect near the end of August. The program was started to aid individuals and groups that are using government funding by giving them a better chance of being able to buy Fannie Mae foreclosures. It makes sense to make foreclosure homes available to government funded buyers since the foreclosed homes are owned by a federally owned company (Fannie Mae).
Originally, lenders were required to discount foreclosed properties by 15% to any buyer using federal acquired funds. That number was reduced to 1% which has helped a great deal in getting lenders to sell to individuals using federal money to purchase foreclosed homes.
Many of the government agencies that are supplying funds to home buyers have deadlines for the availability and use of the funds. If you plan to use any of the programs you should first find any information regarding restrictions and deadlines.
See more:
Public Entity Streamlined Real Estate Owned (REO) Sales Initiative
Pros and Cons of Selling Short Sale Foreclosure Real Estate
YOUR HOME; Lowering Mortgage Barriers
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Yes, Don’t always have the “First Look” on it, meaning don’t make a decision yet until you do not have complete infomation to your business. As they mention on these article find information regarding restrictions and deadlines. Just make sure all the requirements are secured.
This is the first I’ve heard of this program, but it sounds great and makes sense considering the buyers are using federal money in most cases. We have had a lot of buyers lose out on foreclosed homes…not sure if they are investors or not. Foreclosures are selling like hotcakes around here!
Interesting…this is the first I have heard of this too. Sort of like the HUD homes only being available to owner occupied for the first 10 days. Not really sure what if any impact this will have.
I’m guessing they are trying to “help” people own homes, not make money for investors. Sadly, with the number of properties, they should be open to anyone that can afford them, regardless.
Chas@Las Vegas Real Estate´s last blog ..First Time Home Buyer Tax Credit Extended
Investors are often only out after quick money, a bargain who they can fix up and sell with good profit. They don’t need any mortgage, so this program called “First Look” can be good for the first time buyers.
Interesting program. I will forward this information on to my clients.
Augusta Real Estate´s last blog ..Fantastic townhome in great West Augusta location
This program will help a lot on foreclosure issues. Investors are more interested in quick profit by repairing the property then sell it,that’s why they don’t want to look first. This program will help specially on first time buyers.