Fannie Mae was created in 1968, but the company itself appeared much earlier, in 1938. It is important to stress out, that in 2008 Fannie Mae was placed under the conservatorship of Federal Housing Finance Agency or shortly - FHFA. This operation was realized by James Lockhart, the FHFA director.

Pay your attention, that the Fannie Mae is obliged to keep quite high liquidity rate on mortgage market as far as it deals with REO. It is the main reason the Department of Treasury of USA is going to input up to 200 billion US dollars into this company. Now Fannie Mae operates on foreclosure markets as GSE or government sponsored enterprise. The latter deals with the Fannie Mae foreclosed houses to maintain the liquidity rate on mortgage markets of United States.

It is important to add that Fannie Mae operates on secondary market, Fannie Mae purchases the foreclosed property and as a result problem loans turn to Fannie Mae REO. To receive means for such deals the Fannie Mae transforms its foreclosures into securities, so it enables homes buyers to obtain the loan. All Fannie Mae activities can be described as 3 directions: single family and housing development, operating on capital market. We should also underline that Fannie Mae is functioning on the territory of all the USA, everywhere from one coast to another.

But all Fannie Mae directions mentioned earlier have a common goal, because the Fannie Mae mission is to maintain the relatively low interest rates on mortgage markets, so it will be obtainable for clients. And for sure Fannie Mae aims for gaining higher profit operating with its REO.

Use this website to search thousands of Fannie Mae foreclosed homes including a lot of other bank foreclosure properties and government foreclosures

Post foreclosures (REO)

REO property or real estate owned property belongs to banks. How does it happen that banks own a real estate? Well, it is easy to understand: bank gives a loan, so mortgage appears, if client cant pay his dept and if there are no ways to avoid foreclosure, the home becomes the property of financial organization. It may seem that foreclosures can’t bring high profits as bank want to sell it offering the price which will at least cover the amount of the first loan. On the other hand, if you will be more attentive, you will see some ways to benefit greatly from buying a foreclosure house.

It may be the situation, when more then one loan is secured to the real estate; actually it happens quite often nowadays. In case second lender doesn’t make payments to the first lender and starts own foreclosure procedure, in this case the second lender is not part of foreclosure process any more. That is the main reason why plenty of second mortgages are valued around 20% less then the normal market price.

• Largest foreclosure lenders:
• FannieMae foreclosures
• Freddie Mac foreclosed homes
• Contrywide foreclosures
• BofA Foreclosure homes

Bank doesn’t benefit from being an owner of a house; it needs money to flow constantly to get higher net profit. More over keeping a foreclosure as an asset may cause additional expenses. That is why bank wants to sell this burden as soon as possible, and it is likely to accept even not high price, just to cover the dept.