HREU Students, in case you didn’t hear about this new..temporary program…listen up…

When your buyers buy a Fannie Mae owned REO (becoming a majority of the REOs) they will receive a 3.5% kick back designed to cover their closing costs. This is IN ADDITION to the ‘home buyer tax credit’ that expires in April 2010. Remember, FHA buyers can also have the seller contribute 3.5% toward their DOWN PAYMENT. This effectively makes it possible for buyers to buy with no money down.

(HREU REO Listing Agents..with Fannie Mae Assets….be sure to market your REO Assets as ‘No Closing Costs..etc’.)

Bottom line, know about these programs. They are all set to expire in late spring of 2010. As we have been reporting on this blog..the first half of 2010 will have a significantly stronger housing market vs the second half. Do whatever it takes to position your real estate clients to take advantage of these government programs before they expire.

We don’t necessarily agree that its a ‘great time to buy’…nor do we agree that everyone should own a home.

But, if your buyers are qualified..have a long term ownership horizon (they want to keep the home long term so short term value fluctuations are less meaningful)…the combination of these limited time government programs and low interest rates really does present a compelling case for buying NOW. Be sure to share this information with your clients.

Source: DSNews.com

Fannie Mae will now cover the closing costs on purchases of its REO homes – an incentive the GSE hopes will help it pare down a bloated supply of repossessed foreclosed properties.

The nation’s largest mortgage financier has announced a temporary seller-assistance program under which people purchasing a property through HomePath, Fannie Mae’s REO disposition operation, will receive up to 3.5 percent of the final sales price, which can be applied toward closing costs or used to purchase appliances for their new home.

The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010, the company said. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, with as little as 3 percent down.

Recent data from Fannie Mae show an increase in the acquisition of foreclosed properties and an escalating rate of seriously delinquent loans, which means even larger volumes of REOs could be coming down the pipeline.

Furthermore, Fannie Mae’s monthly summary shows significant growth in seriously delinquent single-family mortgages held or guaranteed by the company. Up from 2.13 percent in November 2008, loans three or more months behind in payments or in the foreclosure process soared to 5.29 percent in November 2009.

Agents, read that again. Fannie Mae is experiencing staggering increases in delinquent loans. (maybe…just maybe…if they required greater down payments and more ‘skin in the game’ from the buyers there would be fewer foreclosures but, I digress). Bottom line to you…learn how to become a REO listing agent. REOs (and short sales) are the market. You know this.

Its NOT too late for you to become a REO Listing Agent. Watch the FREE Agent REO Secrets video and download the FREE Agent REO Secrets book. <——–Click to watch video NOW.

According to the GSE’s most recent quarterly filing, Fannie Mae acquired 98,428 homes through foreclosure during the first nine months of last year and sold 89,691 REO properties during the same period. But at the end of September, Fannie Mae still had 72,275 REO properties on its books, marking a 7 percent increase year-over-year.

Popularity: 3% [?]