Septermber 14, 2010 (Chris Moore)
With a record number of foreclosures in its inventory, mortgage giant Fannie Mae has decided to institute a program it hopes will give home buyers incentive to buy from them. One can only wonder if other mortgage holders will consider similar programs to help reduce their foreclosed properties.
As part of the program to help speed up home sales and get their troubled mortgages off their books, the government lender is offering to pay closing costs for home buyers and paying real estate agents a bonus of $1500 after the home purchase closes.
Qualified home buyers who intend to live in the properties can get as much as 3.5% closing cost assistance. To be eligible for the credit, buyers must submit their offer after September 23rd and the transaction must close no later than December 31st 2010 or within 60 days of being accepted, which ever is first.
The program is in reaction to pressure exerted by lawmakers who are urging Fannie Mae and Freddie Mac to rid themselves of foreclosed properties and help speed up the housing recovery. Foreclosures are at an all-time high with more than 1.3 million homes to be foreclosed in 2010 alone. Freddie Mac and Fannie Mae hold over one million foreclosed homes in their inventory.
The homes and properties Fannie Mae sells include single family homes, condominiums, and townhouses. This program represents a great opportunity for home buyers who are currently looking for a home a great chance to save money on closing costs.