Fannie Mae is the source of many home mortgages. When one of their loans results in Foreclosure, the home is listed with an agent and advertised as a Fannie Mae Homepath Home. These homes have special financing available, typically with only 3% down payment required, the appraisal waived and up to 3% in Seller paid concessions toward closing costs.
If you are tight on down payment and closing costs and run across one of these homes they may be a good option to consider. In some cases they have done some upgrades or repairs, but still may need additional work.
I've attached a link to the Fannie Mae website so you can learn more about it. Best of luck.