The Federal National Mortgage Association -- known as Fannie Mae -- sells property it acquires through foreclosure, deed in lieu of foreclosure or forfeiture. If you qualify for a mortgage or have cash savings and do the proper inspections, you may be able to purchase a house at a discounted price. According to HomePath.com, Fannie Mae has different types of real-estate-owned properties including single-family homes, condos and townhouses.
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 indicates the maximum loan amount that may be obtained. Fannie Mae won't accept an offer without this documentation.
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Review the REO properties Fannie Mae owns on the agency website or with a real estate agent. A real estate agent also can arrange showings of any properties in which you are interested.
Arrange for a thorough inspection of the property; you do this before making an offer. Although Fannie Mae discloses any significant hazards in the home, the property is sold "as is." Fannie Mae is not responsible for any repairs that must be made after the sale.
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.
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 approved by Fannie Mae.
Obtain financing approval once an offer has been accepted. Then, close the sale at a title and escrow company agreed upon by you and Fannie Mae.
To avoid unforeseen costs in the future, use a reputable inspector to fully disclose any repairs that will be needed to the property.