Understanding the basics of Fannie Mae and the current Big Bear Market
As of today there are 391 properties available in the Big Bear Valley. For our market, this is extremely low. Generally, desirable properties that are priced appropriately are being sold within the first 30 days. This is good news for a seller.
Not to worry, there is still good news for all you buyers too. Since the crash, the market is still no where near to where it was 8-9 years ago and although they aren't a plenty, REO sales still exist.
Fannie Mae (defined as a government sponsored enterprise) buys loans from lenders and sells them to investors in the open market as mortgage-backed securities. This is the most common REO sale today.
Is this a buyer advantage? Well, there is a perk or two when buying a Fannie Mae property. Once qualified you have the opportunity to get financing through Home Path, where you can buy with as little as 5% on a primary residence and 10% for investors (Please visit www.homepath.com for further details).
Fannie Mae hires certain local agents to list these properties for sale. They however, have little to nothing to do with pricing. FM will generate a price and every 30 days there after that it doesn't sell, will get a price drop. Pricing for all properties are different.
As far as getting a "deal" is considered, yes... you may be able to snatch up one of these properties at a good price. But keep in mind... you will most likely be competing against some others if the pricing drops low enough.
If you wish to learn more about Fannie Mae you can visit their web site at www.fanniemae.com and current available listings can be found on the Home Path's web site listed above.
Happy buying and selling in 2014!