• What is Fannie Mae?

Fannie Mae is a government-sponsored enterprise chartered by Congress with a mission to provide liquidity and stability to the U.S. housing and mortgage markets.

Fannie Mae operates in the U.S. secondary mortgage market.  Rather than making home loans directly with consumers, Fannie Mae works with mortgage bankers, brokers, and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates.  Fannie Mae funds their mortgage investments primarily by issuing debt securities in the domestic and international capital markets.

• Why does Fannie Mae have properties for sale?

Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is  unavoidable.  When foreclosures occur on mortgages in which Fannie Mae is the investor, their goal is to sell properties in a timely manner in order to minimize the impact on the community.

• What kinds of properties are available in the Fannie Mae HomePath database?

Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae.  There is a wide selection of homes, including single-family homes, condominiums, and town houses--located in a variety of neighborhoods.  The number, types and the sales prices of the homes that are offered for sale may vary substantially.  many of these homes are relatively new; however, older homes are offered in some areas.  Some homes may require repairs.

• How is buying a home owned or managed by Fannie Mae different from other home purchases?

Usually when you buy a home, you deal with a seller who lives in the home.  Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure or forfeiture.

When buying a Fannie Mae-owned home, you should know the condition of the property, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.

• Has Fannie Mae fixed everything in the house?

Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed.  Fannie Mae sells each property "as is", which means that the buyer accepts the property "as is".  Fannie Mae is not responsible for fixing any problems after settlement.

Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding--it doesn't mean everything in the house is new, or even works.

Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract.  Where a home warranty is available, a buyer may wish to buy it at their own expense.

A buyer should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not.  Hiring a home inspector is a recommended practice, no matter what type of home a buyer purchases.

• What can Fannie Mae tell a buyer about a house?

If Fannie Mae knows about any hazards on properties they own or market, they disclose this information through their real estate listing agents.  However, Fannie Mae may not have been informed by the previous owner of all hazards, and they encourage a buyer to have the property inspected by a professional before buying the house.

• What type of sales contract does Fannie Mae use?

Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for their properties.  If there is anything in the document a buyer doesn't understand or isn't comfortable with, they may want to contact a real estate attorney, the real estate sales professional who has listed the property, or a real estate professional of their choice to review these documents with them.

• Does a buyer have to use Fannie Mae's selected title, settlement or escrow companies?

No.  A buyer may designate the title, settlement or escrow company of their choice--subject to the terms of the contract.

• Will Fannie Mae accept an offer contingent on the sale of a buyer's house?

No, Fannie Mae will not accept offers contingent on the sale of a buyer's home.  Other types of contingencies will be considered on a case-by-case basis.

• Why does Fannie Mae require a lender's prequalification statement before negotiating a home purchase offer?

Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed.  Prequalification allows a buyer to see how much house they can afford and the mortgage amount they may be able to qualify for before they make an offer on a home.   It also helps the buyer focus on homes in an affordable price range.

A loan prequalification doesn't mean a buyer's loan is approved.  A buyer must apply for a loan separately, after they are prequalified and their purchase offer is accepted.

• Does Fannie Mae provide special financing?

Special financing is available on many properties through HomePath® Mortgage and HomePath® Renovation Mortgage.  A buyer may obtain more information on HomePath® through the Fannie Mae real estate listing agent.

• Can a buyer purchase a house directly from Fannie Mae without going through a real estate sales professional?

No.  Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through Fannie Mae's real estate listing agents.  A buyer may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property for Fannie Mae.

• What happens if Fannie Mae gets more than one offer?

All interested parties may be asked to submit their best offer in writing through the listing agent no later than a specified date and time.  Fannie Mae may accept or provide a counteroffer that they determine to be in their best interest.  Fannie Mae requires real estate sales professionals to submit an offer to the real estate agent who has listed the property.  Fannie Mae is not obligated to accept any offer submitted.

For the Pitt County and Greenville, NC area, The Pistol Tingen Team has represented Fannie Mae as their exclusive real estate sales professionals for over 17 years.  All local Fannie Mae foreclosures (not outsourced to third party REO vendors) are listed by The Tingen Team.  They are also the designated real estate agents  who receive and present all offers for submission to Fannie Mae.  If you would like more information regarding Fannie Mae foreclosures -- or other properties in Pitt County or Greenville, NC area, please contact The Pistol Tingen Team at (252) 321-6161.