To provide owner-occupants and public entities an advantage in purchasing foreclosed properties it owns, Fannie Mae has created the First Look initiative.
Under the program, only offers from owner-occupants and buyers using public funds will be 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.
The First Look initiative was piloted in August and is rolling out across the country. Initial response to the initiative has been positive.
‘Fannie Mae's First Look process gives us the time and easy access needed to gain control of the properties and allows us to influence the future of our neighborhoods," says Sheri Pemberton-Hoiby, senior project manager with the city of St. Paul, Minn., one of the markets that test-drove the program. "Plus, we have the ability to work directly with Fannie Mae representatives if issues arise.’
Fannie Mae is also offering several added benefits to buyers using Neighborhood Stabilization Program (NSP) funds or HOME Investment Partnerships Program funds from the Department of Housing and Urban Development, local housing trust funds or charitable foundation funds.
The company will waive the earnest money/deposit requirement for public entities using public funds and reduce the deposit amounts for individual home buyers who have qualified for public funds. Fannie Mae will also, upon receipt of an acceptable offer, enable buyers to renegotiate their offer after obtaining an NSP-required appraisal.
Additionally, Fannie Mae will give qualified buyers up to 45 days to close – 15 days more than is usually permitted for purchases of Fannie Mae-owned properties.
SOURCE: Fannie Mae