Fannie Mae Homes Up For Sale, Minus Home Inspections
- By Rich Jones
- Published 10/21/2011
- Buying
- Unrated
One would think that Fannie Mae would be eager to rid itself of the 135,719 remaining single family residences in its inventory. Although, after already selling off hundreds of thousands of properties since the housing market crashed, Fannie Mae can see the light at the end of the tunnel at last. In the first half of this year, Fannie Mae acquired 107,246 new homes, but sold off 134,016 homes. They're negotiating directly with buyers to sell off foreclosures at rock bottom prices with generous incentives. However, it should be duly noted that these homes are sold "as is" and offer no peace of mind with home inspections prior to moving in.
The Fannie Mae homes up for grabs are listed through brokers on a site called www.HomePath.com where prospective buyers may narrow their searches via town, zip code, price, and bed/bath number. These homes are open to occupants and investors alike. People applying as occupants must agree to move into the home within 60 days of closing and remain in the home for at least a year. Fraudulent claims are subject to a $10,000 penalty.
Benefits for occupants include 15 days to view homes, without worrying about bidding against investors. They can also take advantage of Fannie Mae approved loan terms and loans for renovations. Until the end of October, they're sweetening the pot with incentives like 3.5 percent cash credit toward closing costs and a $1,200 real estate agent fee bonus.
Yet, wha
t is all this about not being able to wheel and deal following home inspections? Once you submit a written purchase offer through your real estate agent, you will need to submit a 13-page addendum online, which eliminates all your homebuyer protections. Your home may have been in "distressed" condition. It may have undergone an exhaustive series of repairs before you walked through and fell in love with it. Those repairs are not protected by warranty, nor guarantee. According to the paperwork, Fannie Mae is not liable for defects like mold.
It's not that you cannot get home inspections done. In fact, all interested buyers are definitely encouraged to pay for a rather rigorous inspection that includes everything from termite, radon and mold to fireplace, septic system, and electrical work. While you'll find out what the status of the home is, you cannot use the results to barter for a better deal. Fannie Mae will simply offer the home to investors if you don't want it. You'll be out about $400, but it's better than being trapped into a money-pit. Conversely, you may decide to still buy the home after all. At least in that case you know what sort of expenses to anticipate.
In addition to receiving home inspections, buyers should also check with the local government to run a full title search and boundary line survey to make sure there are no problems there. It's a common misconception that home inspections are barriers to purchasing new homes. Instead, it's an essential part of the home-buying process that protects consumers from unanticipated disasters.
The Fannie Mae homes up for grabs are listed through brokers on a site called www.HomePath.com where prospective buyers may narrow their searches via town, zip code, price, and bed/bath number. These homes are open to occupants and investors alike. People applying as occupants must agree to move into the home within 60 days of closing and remain in the home for at least a year. Fraudulent claims are subject to a $10,000 penalty.
Benefits for occupants include 15 days to view homes, without worrying about bidding against investors. They can also take advantage of Fannie Mae approved loan terms and loans for renovations. Until the end of October, they're sweetening the pot with incentives like 3.5 percent cash credit toward closing costs and a $1,200 real estate agent fee bonus.
Yet, wha
It's not that you cannot get home inspections done. In fact, all interested buyers are definitely encouraged to pay for a rather rigorous inspection that includes everything from termite, radon and mold to fireplace, septic system, and electrical work. While you'll find out what the status of the home is, you cannot use the results to barter for a better deal. Fannie Mae will simply offer the home to investors if you don't want it. You'll be out about $400, but it's better than being trapped into a money-pit. Conversely, you may decide to still buy the home after all. At least in that case you know what sort of expenses to anticipate.
In addition to receiving home inspections, buyers should also check with the local government to run a full title search and boundary line survey to make sure there are no problems there. It's a common misconception that home inspections are barriers to purchasing new homes. Instead, it's an essential part of the home-buying process that protects consumers from unanticipated disasters.
Rich Jones
Rich Jones works with a successful home inspector company in the Washington DC area which specializes in Virginia mold inspections. Each year, this company helps home owners ensure their homes are safe from termites, radon and mold, and offers remediation services to help clean up any homes in need of such services. For more information on all aspects of homes inspections, please visit www.SafeHomeWeb.com
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