Fannie Mae was set up in 1968, though the company itself appeared some years earlier, in 1938. It is important to say, that in 2008 Fannie Mae was settled under the conservatorship of Federal Housing Finance Agency or as it can be related to - FHFA. This transaction was realized by James Lockhart, the FHFA director.

Pay your attention, that the Fannie Mae should save high liquidity ratio on foreclosureℜ estate market as far as it deals with REO. It is the main reason the Department of Treasury of USA is planning to invest more then 200 billion dollars of USA into this company. Today Fannie Mae acts on mortgage markets as GSE that means government sponsored enterprise. This GSE works with the Fannie Mae REO homes to save the liquidity ratio on US foreclosure markets.

It is important to add that Fannie Mae operates on secondary market, it picks up foreclosed houses and after all problem loans became Fannie Mae REO. In order to get money for such investments the Fannie Mae converts its mortgages into securities, so it enables houses buyers to take the loan. All Fannie Mae activities can be described as 3 fields: single family and housing development, functioning on capital market. More over Fannie Mae is operating on the territory of all the United States, everywhere from one coast to another.

But all Fannie Mae fields mentioned earlier have a common objective, because the Fannie Mae main intention is to achieve the average interest rates on mortgage markets, so it will be available for clients. And for sure Fannie Mae strives for receiving higher profit working with its REO.

Use this website to search thousands of Fannie Mae foreclosed houses 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 of preventing 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 REO properties
• Freddie Mac REO
• Contrywide foreclosure properties
• BofA Foreclosure properties

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.