How to Buy a REO Property From the Federal National Mortgage Association
- 1). Obtain a prequalification letter from a lender. The prequalification process does not constitute loan approval, but it provides an intent to lend if qualifying information is properly verified. It will indicate the maximum loan amount that may be obtained. Fannie Mae will not accept an offer without this documentation.
- 2). Review the REO properties Fannie Mae owns on the agency website or with a real estate agent.
- 3). Contact a real estate agent to schedule showings of real estate owned by Fannie Mae.
- 4). Arrange for a thorough inspection of the property. Although Fannie Mae discloses any significant hazards the agency is aware of, a property is sold "as is." Fannie Mae is not responsible for any repairs that must be made after the sale.
- 5). Consider any special financing programs that may be available through Fannie Mae. Some, but not all, of the properties owned by Fannie Mae qualify for special financing programs through authorized lenders.
- 6). Submit an offer to Fannie Mae and finalize the price through a real estate agent. Any real estate agent may submit the offer to the listing agent that has been approved by Fannie Mae.
- 7). Obtain financing for a loan once an offer has been accepted.
- 8). Close the sale. The purchaser can select the title, settlement and escrow company that will be used.
