What is a Fannie Mae HomePath foreclosure?

Fannie is the real owner, not the bank or mortgage lender. Additionally, there are many types of foreclosed properties in today’s housing market such as pre-foreclosure, short sales, sheriff sales and so on. They all have their pros and cons but the Fannie Mae HomePath foreclosures come with their own rules, requirements and acquisition process.

Should you buy a Fannie Mae HomePath property?

Naturally, as with any property designated as a foreclosure, there are also some built-in risks attached to buying a Fannie Mae Homepath property. Home condition: While the HomePath program generally features homes in good condition, all homes are sold “as is,” meaning that buyers do run the risk of purchasing homes in less than ideal condition.

What is a Fannie Mae REO property?

In such circumstances, Fannie becomes the owner of the property, a designation that is referred to as Real Estate Owned, or REO. These are the homes that will become HomePath properties. Once acquired, Fannie Mae’s REO properties are put on the market via Fannie’s HomePath Property program.