Could HomePath Be Your Path to Home Ownership?

Whenever we start working with new buyers, we set up a home search in the MLS based on desired criteria: number of bedrooms, total finished square footage, choice of geographic area. Often timelier and more comprehensive than consumer-focused websites, the MLS is a great tool for buyers to keep up to date on market info and listing status. While the MLS includes distressed property listings—auctions, real estate- or bank-owned properties—there are other sites that specifically list this type of home, including HomePath, which lists Fannie Mae-owned properties.

We often hear Fannie Mae discussed in the media, especially when the company’s policies change, as we saw earlier this year. In their own words, Fannie Mae exists “to provide reliable, large-scale access to affordable mortgage credit in all communities across the country at all times so people can buy, refinance, or rent homes.” HomePath is the branding used for all Fannie Mae-owned properties—from HomePath.com, where homebuyers and real estate agents can get detailed information on listings, to HomePath Mortgage which offers buyer financing products these properties.

Foreclosures are becoming less common than they were a few years ago, and Fannie Mae offers assistance to homeowners to help them understand the options available to avoid foreclosure, including KnowYourOptions.com and the Fannie Mae Mortgage Help Centers. Still, foreclosure sometimes cannot be avoided. HomePath properties are the result of foreclosure, deed-in-lieu of foreclosure, or forfeiture.

When home mortgages for which Fannie Mae is the owner/investor are foreclosed, the goal is twofold: to reduce the negative impact on the communities in which the home is located, and to sell these homes in a timely manner. Because of the reduced price, foreclosed properties can be a great opportunity to invest, for first-time buyers, move-up buyers, and for those looking for a second or vacation home.

While the process differs in some ways from a traditional home sale—working with HomePath, rather than a traditional seller, for instance—much of the process stays the same: learning the condition of the property, assessing the cost of any needed repairs, and completing the steps in the loan qualification and closing process before signing a purchase agreement. And there’s a great range of property types and

Unlike a traditional sale, HomePath properties are sold "as is," meaning that the buyer accepts the property in its current condition, releasing Fannie Mae from any responsibility to fix problems that may arise after closing. There’s also no warranty or guarantee on work completed on the property, though a home warranty may be available for buyers to purchase at their own expense.

As any seller must do in a real estate transaction, if Fannie Mae is aware of a hazard on a property, they’re required to disclose the information through real estate listing agents—though they’re not always informed of all hazards. Because of this, it’s always a good idea to have a home inspection performed by a professional.

To learn more about HomePath properties, Fannie Mae offers a Buyer’s Guide with for more information about buying a Fannie Mae-owned home detailing the process from working with a real estate agent, getting approved for financing, and how to make an offer.

To learn more about HomePath and to search for homes by location, visit HomePath.com, and contact HomesMSP to the possibility of buying a HomePath home!