Fannie Mae Foreclosures

About Fannie Mae

Fannie Mae is not a mortgage lending company. Instead, this organization assists mortgage lenders within the United States with funding. Mortgage applicants may hear Fannie Mae referred to as an organization that sets loan limits, but the mission of Fannie Mae is much more than that. This is an organization that is chartered by the federal government and functions to ensure that everyone has the potential to become a homeowner.

This organization has been in existence since 1938, and has recently become a common fixture in the media due to the mortgage crisis. Mortgage lenders sometimes package a group of mortgage loans and sell them to Fannie Mae, and this means that Fannie Mae has an interest in homeowners making their payments beyond mere concern for the well-being of the housing market. In other words, Fannie Mae foreclosures cost the organization money.

Fannie Mae Foreclosures Assistance

Fannie Mae does not have the authority or capability to force lenders to allow homeowners to skip payments or lower interest rates during a financial crisis. On the other hand, lenders usually work willingly with Fannie Mae because of the financial relationship they have with this organization.

If you have a mortgage loan that is in danger of becoming delinquent you should first contact your lender for help, not Fannie Mae. Even if your mortgage loan has been packaged and sold to Fannie Mae – but the servicing remains with the lender – you should contact your lender if there is even a small chance that your payment may not be met.

About Fannie Mae Assistance

Fannie Mae foreclosures assistance can be helpful if your lender is not willing to work with you, or if you have difficulty in reaching your lender. If you contact this organization for assistance you will probably be directed to:

• Make an attempt to work something out with your lender
• Visit the foreclosure avoidance educational information available through Fannie Mae's website
• Contact the Homeownership Preservation Foundation for assistance in getting your mortgage loan back in order. This is a counseling service designed to assist homeowners who aren’t sure of what they should do in an attempt to avoid foreclosure.

The HomeStay Initiative

Fannie Mae has partnered with lenders to create the HomeStay Initiative. This program assists lenders to offer creative solutions to the mortgage crisis while also reaching out to policymakers to push for a solution. Fannie Mae has distributed grants and other funding to programs which are designed to assist homeowners in keeping their homes. A large amount of money has been granted to counseling programs which are meant to help homeowners find their way out of a bad financial situation.

Purchase Foreclosed Properties

Fannie Mae and affiliate mortgage lenders attempt to avoid foreclosing on homes whenever possible because it is a costly process. The ideal situation is to work with the borrower and adjust the mortgage loan in a way that will allow the borrower to eventually become current on payments again.

When it is simply not possible to avoid foreclosure – or when the homeowner simply gives up and decides to walk away from the home – the home is sometimes sold at a price that may be less than market value.

Potential buyers can search for Fannie Mae foreclosures using the tool on the official Fannie Mae website. Properties are usually brokered through a local real estate agency, and the usual closing procedures will apply when purchasing a foreclosed home offered by Fannie Mae. Buyers must acquire financing from a lender, just like with any other mortgage.

Fannie Mae also offers a listing of housing counseling agencies on the website for potential homeowners who want more information about the process of buying a home.