First Look Program
Fannie levels the field
Fannie Mae markets its REO through its HomePath.com Properties. Under the new incentive program, owner occupants and public entities that buy a HomePath Property between now and December 31, can receive up to 3.5% of the purchase price in closing cost assistance. The sale must close within 60 days of acceptance of the offer and no later than December 31, 2010. The incentive must be requested in the initial offer.
What Is It
Individuals and public entities are given a period of time, generally 15 days after a property is listed at HomePath.com (a Fannie Mae site). HomePath.com is the listing site for about 190,000 properties held by the GSEs. Individuals and public entities (read non-profits) have a lead time over investors to inspect and submit an offer to purchase. After 15 days, the listing is open to all potential buyers.
The idea is to offer first to those who would live in the home and become stakeholders, adding stability to the community and to avoid too quickly putting property back into a supply laden market. By offering a sneak preview to owners first, Fannie hopes to encourage home ownership without the edge professionals may have and avoid the pressures of bidding against professional investors.
Why Should I Care
Levels the playing field and it’s working.
Fannie has moved more than 29,000 homes out of its owned real estate portfolio of properties acquired by the through foreclosure to owner occupants. Some 800 non-profits have also bought an additional 5,000 properties through First Look.