Unable to Buy a Foreclosed Home through Your Lender? Have You Heard of Home Path?
Many people are finding out it may be difficult to buy a foreclosed home for sale with an FHA loan or even conventional financing. A number of home buyers have battled it out with minimal success. One factor that kills many deals is the foreclosed home, selling at a very discounted price, still does not appraise for the value of the loan. What can you do?
Take this example…
A condo that was worth $200,000 only a year ago is now selling for $65,000, assuming everything else with the inspection checked out (rare). The bank sends an appraiser to check out the price and it turns out the nearest comparable properties put the appraised value at $20,000. In that case you will not be able to finance the house.
Enter Home Path…
Home Path is a Fannie Mae program that allows for the purchase of a foreclosed home (owned by Fannie) without an appraisal by the bank. That is, as long as the bank is set up with Home Path. Interested people can visit HomePath.com for more information, a list of properties, and local banks and brokers that are set up through the program.
If you've had experiences with Home Path, please share. This is an option very relative to today's real estate market that can help reduce the inventory of foreclosed homes for sale.
Posted at 10:19AM Oct 05, 2009 by Chandra Rose in Financing Comments[0]
