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First Look Initiative - Benefits for Owner Occupant Buyers

By
Real Estate Agent with Kathleen Barnato, Your Santa Barbara & Montecito Connection

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!

To view the entire story, click here. 

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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Bill Morris
RE/MAX Capital City - Austin, TX
ABR, CRS, CDPE, ePRO, MBA

Kathleen, I hope this program does help.  In my experience, Fannie has generally gotten a little harder to do business with over the past couple of years, unless the buyer is using their in-house lending/closing process.  In addition, at least in Central Texas, they no longer prepare properties for market the way they did pre-mortgage crisis.  Both have made their properties better bets for cash investors.  You're right this program should help, the same way HUD offers homes to owner-occupants first.  All best ... have a great 2010!

Feb 22, 2010 03:33 AM