What Is a Fannie Mae HomePath Program?


Quick Answer

Fannie Mae HomePath is a program that works with housing counselors, mortgage servicers and others to help homeowners save their properties from foreclosure, according to HomePath.com. It directly assists homeowners by educating them about their options before foreclosure.

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Full Answer

When mortgages that belong to Fannie Mae by ownership or as an investment suffer foreclosure, Fannie Mae’s goal is to minimize the effects of the foreclosure to the community by selling the property in a timely manner, states HomePath.com. Optionally, Fannie Mae can acquire ownership of such a property on a deed-in-lieu basis where the owner willingly transfers the ownership of the property to be freed from the loan on the mortgage.

Fannie Mae also helps people such as first-time buyers and move-up buyers looking for investment opportunities locate properties, explains HomePath.com. Properties it deals with range from single-family homes to condominiums. Fannie Mae sells its properties as is. To increase marketability of a property, Fannie Mae can do some repairs.

Fannie Mae uses two types of contracts during sales of property: a state-specific real estate purchase contract and a real estate purchase addendum, states HomePath.com. Subject to terms in a contract, a buyer can use a settlement, title or escrow company of his choice. Fannie Mae can provide special financing to buyers through plans such as Interested Party Contributions and Multiple Financed Properties.

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