Consumers who are attempting to buy a home will now have more incentive to purchase a property that has slipped into foreclosure thanks to one of the nation’s two mortgage giants.
Fannie Mae recently announced that it would grant consumers incentives to purchase a home listed on a lender’s foreclosure list between now and October 31 through its HomePath program.
Included in these deals is up to 3.5 per cent of the final sales price being put toward the closing costs the homebuyer would have to pay.
The incentives are being expanded in an effort to help boost slumping property values in areas badly affected by the national foreclosure meltdown, the company said.
“Supporting homeownership and stabilizing neighborhoods are critical to helping the housing market recover,” said Ed Neill, senior vice president for Credit Loss Management at Fannie Mae. “Our previous incentives have been effective in securing owner occupants for these properties. By encouraging homebuyers who will make these properties their long-term home, these expanded incentives will help to stabilise communities.”
To qualify, all initial offers must have been submitted on or after June 14, and closed by October 31, Fannie Mae said. In addition, the home must become a buyer’s permanent residence.
The rash of foreclosures can have a devastating effect on neighborhoods, sending home values plunging significantly and putting many borrowers’ mortgages underwater.
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