My Beautiful Sacramento

Interested in purchasing an REO property?  REO means Real Estate Owned or managed by Fannie Mae.  Fannie Mae developed a brochure for home buyers interested in purchasing California properties owned or managed by Fannie Mae.   This brochure will help you understand the process, costs, and risks involved.  You can download a copy of this brochure here.  I have addressed some of the key questions that I get often, however there is more detailed information and questions on the brochure that I have not addressed in this article.  I only highlighted what I felt was the most important part.  

How is buying a home owned or managed by Fannie Mae different? 

Usually when you buy a home you are purchasing it directly from the seller who lives in the property.   When you buy a home that is owned or managed by Fannie Mae or other corporate sellers you are dealing with a seller who has not occupied the home but has acquired it through foreclosure, deed in lieu of foreclosure or forfeiture.   When buying this type of property (REO) it is important to know the condition, the costs of any needed repairs and the steps in the loan qualifying process before you enter into a sales agreement.

Has Fannie Mae fixed everything in the house? 

Not likely.  They may add fresh paint, new carpet, roof, siding, etc. Still, that does not mean that everything has been fixed or is new.  Fannie Mae sometimes makes repairs to properties to make them more marketable but there could still be issues concerning safety that require repairs.  Fannie Mae sells each property in "AS IS" condition.  This means that you, as the buyer, accept the property in its condition at close of escrow.  Fannie Mae does not warrant or guarantee any work that may have been done on the property.  You should hire a qualified professional to inspect the condition of the property whether it has been repaired or not.  Hiring a home inspector is a good practice no matter what type of home you buy. 

What can you tell me about this house? 

Since Fannie Mae is not a seller who lived in the home, they are exempt from completing a transfer disclosure statement.  If Fannie Mae has any knowledge of any hazards on properties they own, they will disclose this information through their listing agent.   Home buyers are encouraged to inspect the property and have a professional home inspection.    

Will Fannie Mae accept an offer contingent on the sale of my house?

 No.    

Can I buy a house directly from Fannie Mae without going through real estate agents?

 No. You may work with any real estate professional you like, however all offers must be submitted through the listing agent.

What happens if Fannie Mae gets more than one offer? 

Submit your best offer in writing through your real estate agent. Fannie Mae is not obligated to accept any offer submitted.  They will accept the offer that is in their best interest.

 Download the full brochure.

I hope this information was helpful to you.  If you have further questions or need assistance in buying or selling a home, feel free to contact me. 

Sincerely,

One of my passions is devoting my time and resources to our veterans.  I am a Life Member of the Ladies Auxiliary of the Veterans of Foreign Wars and I am proud to be a member of one of California's largest posts, Post 4647.  If you are a returning soldier or have served in the military and want more information on the services that the VFW provides, just follow the links below. 

Ever since its founding more than 100 years ago, the VFW has donated millions upon millions of volunteer hours, been a strong supporter of our country's youth, been a major supporter of patriotic and educational efforts and been an unwavering advocate to our military, its veterans, and their families. Of all we do, our programs make the greatest impact on the lives of those we serve and honor.

Here is information about the post I belong to, but there are posts all over the Uniteds States.  You can find a local post in your area by visting the National VFW site at www.VFW.org

Membership Information

There's usually something fun going on in the Canteen. Every Friday evening there is dinner and dancing. Dinner is served at 6pm and there is a live band or a DJ that starts at 7:30pm. Every Sunday you can enjoy a hearty breakfast of eggs cooked to order, bisquits and gravy, sausage, bacon and hash browns beginning at 9am until about 11am. Enjoy great company and great music every Sunday evening with our DJ in the Canteen.

During the year there is horse shoes, bowling, golf, pool, darts, dominoes, bus trips to Reno, and lots more to offer for recreation and relaxation.

VFW Post 4647 News & Updates

I hope this information was helpful to you.  For more information about the VFW visit http://VFW.org