On November 24 Fannie Mae launched their ‘First Look’ program which, if applied as intended, could prove to be a real value to frustrated homebuyers in many areas. Prospective homebuyers in our area have suffered through much of this year seeing offer after offer go begging as homes are sold to investors with cash. Adding to that frustration, many times the accepted offers net the seller (bank) less than their offer would have but cash has been king.
As encouraging as this program sounds, it will remain to be seen what impact it has on the market. If Fannie operates in good faith, accepts an offer from an individual or public entity during that 15 day window and consummates the transaction, it will be good. If Freddie & the FHA follow suit it will be even better.
However, if they just accept offers for 2 weeks and then throw the door open to investors to see if they get a better offer – then it’s pretty much business as usual with no real benefit accruing to the buyers.
For the full text and particulars, click here:
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.
Meanwhile the City of El Cajon, CA has had a similar program in place for awhile now and has created a checklist to use to expedite the buying process. To download a PDF of what your buyer needs to know – click here: