The secondary mortgage market company, Fannie Mae, launched an all-online system for submitting offers on its inventory of foreclosed homes in February 2012. I personally use this system for my REO investors and 1st time home buyers. Here’s how Fannie describes it on its HomePath website:
“Making an offer to purchase a HomePath property is now quick, easy and entirely online! Beginning February 2, all offers on HomePath properties must be made using the HomePath Online Offer system. If you’re ready to make an offer, just have your real estate professional click the “Make an Offer” button on the property information and follow the instructions.”
Only licensed agents can make offers, so any consumers shopping for a home on Fannie’s HomePath site have to contact an agent first. Fannie Mae requires agents submit applications and go through its proprietary selection process in order to become an approved Fannie Mae listing agent.
Every market is different, but generally the company works with a handful of brokers or agents that it has selected to list its REO properties.
Fannie gives owner-occupant buyers a 15-day window after a property comes on the market to make an offer without competition from investors. Offers made by investors during that “first-look” period are rejected from the system with instructions to resubmit after the 15-day period ends, if the property isn’t under contract by that time. The offers are not kept in the system and queued up.
Buyers can use any financing they want, including Fannie Mae financing through its two HomePath mortgage programs, one for purchases and one for purchases with renovation. If the buyer is using HomePath financing, Fannie only requires a down payment of 3 percent, waives the appraisal and also doesn’t require mortgage insurance. Investors can get up to 90 percent financing.
