Foreclosure in Ashburn>Question Details

Omar.jones, Home Buyer in Chicago, IL

buying a forclosure with cash why does fannie mae (fannie mae is the seller) want to know what other properties I own ?

Asked by Omar.jones, Chicago, IL Tue Feb 18, 2014

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Hello Omar, Fannie Mae is offering special incentives for primary home buyers of their Home Path homes. They are offering 3.5% towards closing costs till March 31st for "First Look" buyers - those primary home buyers signed up on the HomePath.com site can purchase during the first 20 days.

So investors don't qualify for this offer and perhaps Fannie is looking for flags of investors buying cash and saying they are primary home buyers? It doesn't make sense, but that's Fannie!

If you are a primary home buyer, the incentives that Fannie is offering might make it more attractive to get a mortgage (no appraisal, 5% down no MI) and 3.5% towards your closing costs - from Fannie.

Please let me know if you need more information regarding the Fannie HomePath 3.5% closing cost credit!

Details include:
• First Look is typically the first 20 days a property is listed on HomePath.com (Nevada is 30 days).
• Properties in the First Look period have a countdown clock on the property information page of HomePath.com displaying the days remaining to purchase.
• Eligible buyers during First Look are owner occupants, public entities and their partners, and some nonprofits.

Let me know if I can be of assistance,

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com
http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
1 vote Thank Flag Link Wed Feb 19, 2014
Fannie Mae offers owner occupant buyers first opportunity to purchase. Afterwards, the bid is open to investors. If you state you are owner occupant buyer, you must reside in the property upon purchase. How many properties you own indicates that you must be an investor not a owner occupant buyer because, of course, you can't have more than one primary residence.
0 votes Thank Flag Link Fri Feb 21, 2014
Fannie Mae wants to promote owner occupancy and help neighborhoods recover from the market downturn and with that in mind, when you represent that you intend to occupy the home you're buying they want to make sure that you actually will do so.
0 votes Thank Flag Link Fri Feb 21, 2014
Hi Omar,

Fannie Mae's main focus is to promote owner occupancy home ownership. They apparently prefer to avoid the investors who have no real interest in building the neighborhood dynamics and focus on stabilizing the neighborhood, which can be a good thing.

They want to know what you own so that they can better determine if you qualify for the types of program.objectives they are trying to instill. That said, and normally, after the first 8-15 days if they have not found a qualified owner/occupant they will open the listing to investors, but they still want to know what kind of investor you are....

Make sense?
0 votes Thank Flag Link Thu Feb 20, 2014
Omar, Fannie Mae intends to promote homeownership and many times Fannie Mae will offer it's properties only to Buyer's that will occupy the property. Meaning, investors are excluded from buying these properties during a certain grace period that is reserved for Owner Occupants only. Therefore, if you own other properties than Fannie Mae will most likely not consider your offer because the likelihood that you will occupy the property is slim. Check out our website at http://www.24homesale.com.
0 votes Thank Flag Link Wed Feb 19, 2014
They want to know who is an owner occupant and who is an inverstor.
0 votes Thank Flag Link Wed Feb 19, 2014
If its during the First Look period (typically first 15 days on the market) they want to make sure your not an investor.
0 votes Thank Flag Link Wed Feb 19, 2014
Has your broker advised you? Make sure you are working with a knowledgable broker that can help answer your questions.
0 votes Thank Flag Link Wed Feb 19, 2014
Often they gave an owner occupant period and if you are buying in that period they will check to see if you own properties that you may live in instead. They try to give owner occupants a leg up on investors.
0 votes Thank Flag Link Wed Feb 19, 2014
Because they want to see if you own right now, or if you have bought one in the past.
0 votes Thank Flag Link Wed Feb 19, 2014
If you are buying it as an 'owner occupant' they want o know to confirm you are not really an investor.
0 votes Thank Flag Link Wed Feb 19, 2014
What they really want to know is whether you're an owner occupant purchasing the property or whether you're an investor. Investors are typically prohibited from purchasing for the first 10-20 days. That's the reason for their asking what other properties you own.
0 votes Thank Flag Link Wed Feb 19, 2014
Indeed it is because Fannie gives owner occupants the first opportunity to purchase. the time is usually 7 to 10 days.
0 votes Thank Flag Link Wed Feb 19, 2014
Hello Omar,


They are giving first time home buyers an opportunity to own a home in a highly competitive investor market. If you are an investor and always had the intentions of buying as an investor then have your attorney contact your Realtor and figure out the right course of action to take. Good luck.
0 votes Thank Flag Link Wed Feb 19, 2014
Sometimes is because owner occupied or restrictions with numbers of fannie mae property
0 votes Thank Flag Link Wed Feb 19, 2014
Too many investors are reaping the rewards of foreclosed homes. They are trying to give the owner occupied buyer the opportunity to purchase rather than see the investor make money.
0 votes Thank Flag Link Wed Feb 19, 2014
Omar,
I suspect they want to know if you are buying as an owner occupant or an investor. Investors are generally blocked from bidding for the first few days to allow buyers who intend to occupy the home as a primary residence to have a chance. If you own 5 other properties, they may suspect you aren't telling the truth if you sign the affidavit that swears you'll occupy the home. I'm not positive about this, but suspect it may be one reason.
0 votes Thank Flag Link Tue Feb 18, 2014
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