Fannie Mae Supports Neighborhood Stabilization Through "First Look" Initiative
"First Look, Other Benefits for Owner Occupants and Buyers Using Public Funds
"WASHINGTON, DC — Fannie Mae (FNM/NYSE) today announced that the company has launched several initiatives supporting neighborhood stabilization and promoting home purchases by owner occupants and buyers qualifying for public entity housing programs.
"To provide owner occupants and public entities an advantage in purchasing Fannie Mae-owned foreclosed properties, the company has created the First Look initiative. With First Look, only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed."
This represents a great opportunity for buyers who have lost out in bidding wars with investor/cash buyers. I have tried to help numerous buyers, who have to secure a loan in order to buy a house, only to have our offer rejected, and a cash offer accepted. Often the cash offer brings a lower net to the seller, which is even more frustrating to buyers who have to get loans!
I believe this initiative will be very helpful in my market where the low end is under $900,000, and where 1/2 a million bucks ($500,000) buys you a fixer next to the freeway noise of Highway 101! Now, owner occupant buyers have a bit of an advantage over the investor clients...there may still be multiple offers, but at least they are all in the same lending boat!
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Kathleen Barnato k@kathleenbarnato.com 805.570.3366
Serving the South Coast of Santa Barbara County - Hope Ranch, Montecito, Santa Barbara, beach front
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