A joint-stock company Fannie Mae was founded in 1968, but the company itself appeared much earlier, in 1938. It is important to mention, that in 2008 Fannie Mae was set under the conservatorship of Federal Housing Finance Agency or as it is also called - FHFA. This transaction was held by James Lockhart, who occupied the position of FHFA director.

Pay attention, that the Fannie Mae has to maintain quite high level of liquidity on mortgage market as far as it deals with REO. It is the main reason the Department of Treasury of USA has decided to invest around 200 billion USD into this company. Today Fannie Mae operates on real estate markets as GSE or government sponsored enterprise. The latter operates with the Fannie Mae foreclosure homes in order to keep the level of liquidity on US foreclosure markets.

More over Fannie Mae works on secondary market, it buys the mortgages and after all bad loans turn into Fannie Mae REO. To get money for such operations the Fannie Mae turns its mortgages into securities, so it enables real estate buyers to get the loan. All Fannie Mae activities can be divided into three branches: single family and housing development, working on capital market. Another advantage of this GSE is that Fannie Mae is functioning on the territory of all the US, everywhere from one coast to another.

But all Fannie Mae branches mentioned above are united with a common aim, because the mission of the company is to keep the average interest rates on foreclosure markets, so it will be affordable for clients. And of course Fannie Mae seeks for receiving higher profit operating with its REO.

Use this website to search thousands of Fannie Mae foreclosures including a lot of other bank foreclosures 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 prevent foreclosure, the house 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 foreclosure listings
• Freddie Mac foreclosures
• Contrywide REO
• BofA Foreclosures

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.