South Lake Tahoe MLS

Foreclosures in South Lake Tahoe Q and A

 

 

Purchasing a bank owned foreclosure is a lot different than purchasing a home from a homeowner. Fannie Mae has put together a list of general questions and answers that will help buyers to understand the main difference between the two transactions.

Q. How is buying a home owned or

managed by Fannie Mae different?

A Usually, when you buy a home, you deal with a

seller who lives in the home. However, Fannie

Mae and other corporate sellers have not

occupied the homes they are selling. They are

transitional owners only, having acquired these

properties through foreclosure, or deed in lieu

of foreclosure, or forfeiture.

When buying a corporate-owned home, it is

important to know the condition of the

property, the cost of any needed repairs, and

steps in the loan qualification and closing

processes before you enter into a purchase and

sales agreement.

Q Has Fannie Mae fixed everything in

the house?

A Probably not. Even if the house has fresh paint,

brand new carpet, perhaps even a new roof or

siding, that doesn’t mean everything in the

house is new – or even works.

Fannie Mae sometimes makes repairs to

properties to increase their marketability.

Additionally, there may be certain safety

conditions that require repairs. But Fannie Mae

sells each property in an “as is” condition. This

means that you, as the buyer, accept the

property in its condition at the close of escrow.

Fannie Mae is not responsible for fixing any

problems after the close of escrow.

Fannie Mae does not warrant or guarantee any

work that may have been done on the property –

whether made as part of its efforts to sell the

home or pursuant to conditions in the purchase

contract. You may wish to buy a home warranty

at your own expense.

You should certainly hire a qualified professional

to inspect the condition of the property whether

it has been repaired or not. Hiring a home

inspector is a good practice, no matter what

type of home you buy.
Q What can you tell me about this house?

A Sellers of properties acquired through

foreclosure, deed in lieu of foreclosure, or

forfeiture are exempt from completing a transfer

disclosure statement. That’s because these sellers

never lived in the house, and don’t necessarily

know of any hazards present. However, if Fannie

Mae has knowledge of any hazards on properties

we own or market, we disclose this information

through our listing agents. Again, we encourage

you to make your own home inspection of the

property before you buy.

Q What type of sales contract does

Fannie Mae use?

A Usually, when you buy a California home, you

write an offer to purchase. Then, once your offer

is accepted, you open escrow through a second

set of documents called escrow documents.

In order to increase the efficiency of the sales

process, Fannie Mae uses a combined real estate

purchase contract/escrow instructions

document for California properties. If there is

anything in the document you don’t understand,

or aren’t comfortable with, you may want to

contact a real estate attorney, the real estate sales

professional who has listed the property, or any

real estate professional of your choice to review

these documents with you.

Q Do I have to use Fannie Mae’s selected

title and escrow companies?

A No. The use of Fannie Mae selected title and

escrow companies is not required. You, as a

buyer, may designate use of the title or escrow

company of your choice, subject to the terms

of the contract.

Q Will Fannie Mae accept an offer

contingent on the sale of my house?

A No. Fannie Mae will not accept offers contingent

on the sale of your current home. Other types of

contingencies will be considered on a case-bycase

basis.

Q Why does Fannie Mae require a lender’s

prequalification statement before

negotiating a home purchase offer?

A Fannie Mae wants to be sure that you, as a

prospective buyer, will be able to complete the

sales transaction, including obtaining financing

when needed. Prequalification allows you to see

how much house you can afford, and how much

of a mortgage you may be able to qualif y for,

before you actually make an offer on a home.

That also helps you focus on homes in a price

range you can afford.

What’s involved when you, and your copurchaser

if there is one, get prequalified?

First, the lender will verify if you have sufficient

funds for the down payment and closing costs by

checking your bank statements. Second, the

lender will judge your ability to make house

payments by reviewing your credit report. And

third, the lender will verify your income through

your most recent pay stubs.

Remember, a loan prequalification doesn’t mean

your loan is approved. You must apply for a loan

separately, after you are prequalified and your

offer to buy the home is accepted.

Fannie Mae may require that a Fannie Maeapproved

lender provide your prequalification

statement. However, you may apply for and

obtain your mortgage from any lender –

it need not be the lender who provided your

prequalification statement.

Q Does Fannie Mae provide special

financing on its houses?

A Sometimes. REO (Real Estate Owned) financing

may be available on certain Fannie Mae-owned

properties through lenders designated by

Fannie Mae. The listing agent is able to

provide information regarding the availability

of financing on any particular property.

Q Can I buy a house directly from

Fannie Mae without going through

real estate agents?

A No. Fannie Mae depends on the expertise of local

real estate sales professionals and accepts offers

only through our real estate listing agents. You

may work with any real estate sales professional

you like to submit an offer to the real estate

agent who has listed the property.

Q What happens if Fannie Mae gets more

than one offer?

A Each interested party may be requested to

submit their “best” offer in writing through

the listing agent no later than a certain specified

date and time. Fannie Mae may accept or provide

a counteroffer to the offer that Fannie Mae

determines to be in its best interest. Fannie Mae

is not obligated to accept any offer submitted.

Q How can I learn more about California

properties for sale?

A Fannie Mae-owned and managed homes are listed

in the local South Lake Tahoe MLS, if

available, and are accessible to any real estate

broker. In addition, you can find the list of

properties for sale on Fannie Mae’s web site at

www. fanniemae.com. There, you can search for

Fannie Mae-owned and managed properties by

city, state, and price range. The web site lets you

view the properties available – in California and

nationwide. Information includes street

addresses and contact information for the real

estate broker.

For a list of Foreclosures in South Lake Tahoe please contact Brent and Jill Johnson at BJJohnson@ChaseInternational.com