Fannie Mae foreclosures are homes in which Fannie Mae is the investor. Fannie Mae is the government-sponsored agency whose role is to provide liquidity, stability and affordability to the U.S. housing and mortgage markets. Fannie Mae operates in the U.S. secondary mortgage market, working with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to homebuyers at affordable rates.

When a foreclosure occurs on a mortgage in which Fannie Mae is the investor, the agency’s goal is to sell the properties in a timely manner in order to minimize the impact on the community. The range of Fannie Mae owned properties varies widely – from single-family homes to condominiums and townhouses.

The Advantages and Disadvantages of Fannie Mae Owned Properties for Sale

An advantage of buying a Fannie Mae is that the property is unoccupied, unlike a conventional sale where the seller probably still resides in the homes. Also, Fannie Mae owned properties are completely safe to buy and they do not have any liabilities with other third parties. On the downside, while Fannie Mae may make some repairs to the property to make it more marketable, the agency generally sells the house ‘as is.’ You should hire a qualified professional to conduct an inspection of the property.

How to Find Fannie Mae Foreclosed Home Sales

Check the Fannie Mae foreclosure listing, which provides reliable details on all foreclosed properties available for sale. You cannot buy a home directly from Fannie Mae however; the agency accepts offers only through its real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.

You also will need a pre-approval letter for a home mortgage loan from a bank or mortgage company unless you are going to offer cash. Fannie Mae will not consider an offer unless you provide one of these letters from a recognized lending institution. Even then, loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are pre-qualified and your purchase offer is accepted.

In the case of multiple offers, all interested parties may be asked to submit their best offer in writing through the listing agent no later than a specified date and time. Fannie Mae may accept it or provide a counteroffer and is not obligated to accept any submitted offer.