November 29, 2009

Fannie Launches the First look Program

Fannies supply of foreclosed homes keeps growing. The First Look program is designed to help owner occupants buy homes. Its a new program aimed at toward stabilizing neighborhoods and building stronger communities in tough times. The idea is to give the owner occupant an advantage over the investor. generally, investors are professionals and cash heavy. They get to the property first and can buy in full. Fannie and Freddie have launched initiatives that give an edge to the owner who will occupy the home, thereby helping to preserve the neighborhood. 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.

Direct from the Fannie Mae web site:

1. A First Look at properties for buyers using public funds
2. A reserved contract period that gives buyers a chance to renegotiate after obtaining an appraisal
3. An initiative designed to work with HUDs Neighborhood Stabilization Program (NSP)
4. An earnest money waiver for public entities and a discount for individuals (can be as little as $500 for an individual using NSP funds)
5. Extra time for due diligence and closing
6. Freddie Mac has a similar pilot program.

For more information about Fannie Mae’s First Look initiative contact or go to the Fannie press release

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