Fannie and Freddie Give More Time to First Time Buyers

Posted by Professional Realty on Sunday, December 29th, 2013 at 8:39am.    1382 Views

Fannie and Freddie Give First Time Buyers 20 Days

There are many different types of ownership out there on Ohio's real estate market. Bank owned-REO-foreclosures, HUD homes, traditional sales, new construction all have some similarities, however, the way your Realtor places an offer or bid for you varies. Fannie and Freddie Mac, similar to HUD Homes have a period open only to owner occupants and then if no satisfactory offers come in, the bidding is opened to investors. Fannie Mae and Freddie Mac have now expanded to 20 days the window during which non-profits and home-buyers who plan to be owner-occupants can take a "First Look" and bid on foreclosed homes without competition from investors. The First Look window had previously been 15 days, except in Nevada, where a lengthier 30-day First Look window remains in place.

Home buyers shopping for homes in Fannie Mae's "real estate owned" (REO) inventory  and for Freddie Mac REO's can see which properties are still restricted to First Look bidders. REO (real estate owned) simply means foreclosures. And while you can search their independent websites, you'll also find them here or on any real estate brokerage site with MLS feeds. Many buyers mistakenly believe that a Fannie, Freddie or HUD home is somehow a better deal than the others, and simply not true. One day a HUD home might be the best deal for your budget, location and requirements, the next it could be a Fannie Mae. The "First Look" advantage simply helps buyers with more homes, providing extra time without competing with investors who's cash coffers can run fairly deep.

You may want to read my blog post "HUD vs. Foreclosure; Which is Better?" to increase your understanding.

Different types of home ownership may offer small incentives, and very often cities or counties offer grants to first time buyers. Just check with your professional buyers' agent (your Realtor) and inquire what's currently available. It's easy enough to check into these things for local Realtors. To have the greatest number of  likely options, simply look for homes in your price range that fit your location and needs and don't place a lot of weight on the type of ownership. To protect your interests and your pocket book, us a competent and reputable Realtor.

5 Responses to "Fannie and Freddie Give More Time to First Time Buyers"

Andrew wrote: was glad to see this info, both and investor (just starting out) but first purchase will be our primary residence. I like what you said about opening up the options by not being fixed on one type of ownership like hud or foreclosed properties, lol, options are a good thing. Do you sell homes around Eaton or Preble County?

Posted on Sunday, January 5th, 2014 at 1:59pm.

Juanita Limes wrote: Greg,

I head about this extension with more priority to buyers not too long ago too, and believe it's a positive impact for buyers and first time buyers. I believe it's important to give as much opportunity to owner occupants as possible before opening to investors as in the long haul, it should marginally help maintain the surrounding home values. Depends on the real estate investing trend in the local area. For instance, if most investment properties are becoming rentals, it can negatively affect home values, however, if most of the investing is in flipping single family homes, that can actually have a nice positive impact on house values. Keep it coming!

Posted on Sunday, January 5th, 2014 at 4:01pm.

Theo wrote: This is awesome news. I had starting seeking a new residence last year, but was unsuccessful, and twice on these homes I just past the owner occupant bidding deadline (my Realtor wasn't very good, and got these listings last minute and then couldn't show me the home in time.) The funny thing is, you would think they would have known to check the time remaining before scheduling a showing and wasting all their time and mine writing a contract on a home that's already been sold, or now I have to compete with investors... just saying! Still, I'm glad they have extended the time period.

Posted on Thursday, January 9th, 2014 at 11:44am.

Greg Hancock wrote: Hello Theo,

I'm sorry to hear about your experience, but yes, sometimes timing is everything, and to properly serve your client as a Realtor, you need to be on top of issues where time is of the essence. For example, let's say a client wants to buy a HUD home, well, it may appear available according to MLS, but a good Realtor knows to check with HUD first as their website is updated much sooner than when HUD updates the MLS. A HUD home may not actually be for sale but show as for sale on an MLS, or outdated inaccurate places like Zillow and Trulia who rely on agent ads and whatever feeds they can get from brokerages. It's also important to show a client homes as soon as possible and get those contracts in if the client wants to move forward, and to do so without delay. I certainly hope your next experience is a great one, and that you succeed with your goals.

Posted on Thursday, January 9th, 2014 at 11:51am.

Juanita wrote: Hey Theo,

HUD and banks are looking at the market and deciding they can get more for the properties. In doing so, they counter and reject offers, causing extensions on bidding time. When the right price comes in, the bidding is closed and other bidders miss out. Another thing, when the completed documents come in, they may not be completed at all causing them to extend further. Timing becomes a game...cat and mouse!

Posted on Friday, January 10th, 2014 at 11:19pm.

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