There is no great wonder regarding the effects of the nation’s latest mortgage crisis both in Bryan College Station, Texas and the nation as a whole. Loans were left unpaid, and homes were abandoned as banks and the government foreclosed on them. The question is: what became of all those homes that various banks confiscated? With all the lost finances and the economic downturn, there has got to be a stockpile of these homes just waiting to enter the market at steal prices. Fortunately enough for Realtors and home-buyers, even those in the Brazos Valley, there is such a stockpile. And, through a new program instigated by the great mortgage giant Fannie Mae, these homes are now available for inspection and purchase online.
That’s right. As if the web wasn’t growing fast enough, now prospective home-buyers can evaluate and even place offers on homes via the world wide web (through a licensed Realtor, of course). But first, let’s consider Fannie Mae and how this program came to be.
Fannie Mae is in fact the largest lender throughout the United States. And the current exponential growth of their real estate ownership is primarily due to the incredible number of recent foreclosures. It is a reality of the market that when a bank forecloses on a house, businesses like Fannie Mae stoop in to relieve the Bank of their loss, while turning a small profit of their own in return. However, with the drastic quantity of foreclosures across the nation, the prices and values of these homes have plummeted. And now more than ever these foreclosed homes that are being re-released into the market are selling at some of the lowest prices out there.
So what is this program? And how can a prospective home buyer use it?
The program is called HomePath, and can be used through navigation of the website address, www.homepath.com. This program offers many advantages, including the convenience of an online web page. However, it also gives buyers and lenders a more relaxed approach to the finance requirements. In other words, you’re not just buying the house through Fannie Mae: you’re also getting access to the HomePath mortgage and buying process.
The advantages of a loan through Fannie Mae’s HomePath program are surprisingly appealing. First, home buyers are required to make a down-payment of as little as 3% the total cost of the home. Along with this, neither mortgage insurance nor appraisals are required. And to top it all off, the requirements for credit scores are much more flexible than your average loan. So for potential home-owners, looking for a great deal as well as an opportunity to start over or begin fresh, this program is particularly appealing.
So how can you use this program? First off, if you go to the HomePath website and browse through the homes by location, price range, size, number of bedrooms and baths, etc., you will find a button that reads “Make an Offer.” Upon clicking this you will view a note explaining how all offers must be submitted by licensed real estate agents. As a licensed real estate agent, you will then have the opportunity to register for a profile through HomePath.
As a registered member of HomePath, a Realtor is allowed to place offers on homes and evaluate them in various ways. The program also offers assistance in finding homes of outstanding affordability through the “Great Buys” link. Some homes will be listed as “Needing Renovation.” Fannie Mae then allows for eligible home buyers to use the HomePath Renovation tool, which will actually help to finance the repairs on the home. This aspect of the program literally assists in financing the repairs for distressed properties that need a little help before they are entirely ready for people to be living in them.
When all is done, and properties have been weighed, examined, and inspected by home buyers and realtors alike, HomePath allows for the purchase of properties through the website itself. As stated before, there is the “Make an Offer” button, which requires the login of a licensed real estate professional. But then beyond that there is even a way to “Offer to Purchase.” This can be done conveniently and effectively through the website since HomePath actually offers the required documentation via upload. Many of these forms may then be submitted online through the Realtors account, or uploaded through the website immediately.
Once you have completed the forms and agreed to the terms and conditions required by the website, you have an opportunity to confirm your offer or cancel. Listing agents then have the option of receiving the offer, rejecting it, countering it, or entering it into a ‘multiple offers round.’ If the offer is accepted it is the buyer’s responsibility to contact the listing agent. If it is rejected, countered, or entered into a multiple offers round the buyer can then either revise their offer, or withdraw/rescind their offer.
The entire process of purchasing homes through HomePath is quite simple and will be a leading design for future online real estate. And through the knowledge and guidance of a licensed Realtor, nothing can be simpler. The only complication, perhaps, comes through the possibility of multiple offers. But all in all, the development of Fannie Mae’s new online program, HomePath, home buyers all over Texas and the United States have the opportunity to buy houses at lower prices and with better mortgage deals than ever before.
PS – Susan Hilton is Bryan College Station,
Texas’ real estate specialist in foreclosure sales and real estate
agent career building so if you need help –