Fannie Mae-Owned Foreclosure Properties - New Data On First Look Program

Fannie Mae recently announced that nearly 35,000 of the foreclosure properties it owned across the country had been purchased through its First Look program, which was developed and implemented in order to promote owner occupancy.

Through this First Look program, owner occupants and public entities are afforded an advantage in submitting offers on Fannie Mae-owned foreclosed properties, in that they don’t have to worry about competition from investors. Over 29,000 owner occupants were reported to have purchased homes in neighborhoods across the nation through the Fannie Mae First Look program over the last year, whilst a further 5,000 or so Fannie Mae-owned foreclosure properties were purchased by public entities, using funds made available through the Neighborhood Stabilization Program (NSP), which was designed to build stronger communities.

Jay Ryan, the Vice President for Alternative REO Dispositions at Fannie Mae, commented on this program: “While investors play an important role in the REO market, homebuyers who intend to occupy a home make an immediate and lasting commitment to the community and therefore merit priority consideration in the REO sales process. Public entities under the Neighborhood Stabilization Program also benefit from inspecting eligible properties and making offers to purchase without pressure from open market competition. These entities are making considerable investments in rehabilitation and stabilization.”

Through the First Look program, only offers from owner occupants and participants of the NSP are entertained during the initial period a property is on the market, but offers from investors are also considered after the First Look window has passed.