Friday, October 7, 2011

Why Investors Can't Make an Offer for 15 Days

Why do investors have to wait 15 days before making an offer on a HomePath home? Today's winning question by Mike Bradley of Metro Brokers Eagleview Properties addresses that issue. Mike receives a $25 Starbucks card and gets his contact information sent to the 6,600 people on our contact list. We also list his contact info on our blog (10,199 visits for the first 6 months of 2011) and on our blog at Active Rain, a real estate blog with more than 210,000 members.

Mike's contact info follows:

Mike Bradley
Broker-Owner, Realtor, MBA
Metro Brokers Eagleview Properties, LLC
385 Inverness Parkway #140
Englewood, CO 80112
Phone: 303-887-4275

Mike's question is: When looking for bank-owned properties for investors, I often see a line in the MLS notes that says, "Available for HomePath investor offers accepted for 15 days." Why is that allowed?

Here's the answer: A HomePath home is a property that went into foreclosure and is now owned by Fannie Mae. For most of the homes they own, Fannie Mae has a special financing program called HomePath financing. No appraisal is required, no mortgage insurance is required, and the approval guidelines for condos are more relaxed than they are for non-HomePath condos.

Fannie Mae is run by the US government at the moment, and they are doing everything they can to make sure the foreclosure rate drops. Because rental properties have a much higher foreclosure rate than homes that are owned as primary residences, Fannie Mae would rather have the homes they sell be owner-occupied. To accomplish that, they will not accept offers from investors for a certain period of time after the house is listed for sale.

Although that policy may seem unfair to investors, it helps to keep the foreclosure rate a little bit lower, which is good for the entire housing industry.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

No comments: