Fannie Mae was set up in 1968, but 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 shortly - FHFA. This operation was implemented by James Lockhart, who has been working as FHFA director.

Take into account, that the Fannie Mae has to save high 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 more then 200 billion USD into this company. Nowadays Fannie Mae exists on mortgage markets as GSE or government sponsored enterprise. The latter operates with the Fannie Mae foreclosed houses to keep the liquidity on mortgage markets of United States.

We should also mention that Fannie Mae works on secondary market, Fannie Mae purchases the mortgages and as a result problem loans turn to Fannie Mae REO. In order to collect means for such deals the Fannie Mae transforms its foreclosures into securities, so it enables houses buyers to take the loan. All Fannie Mae activities can be divided into 3 directions: single family and housing development, operating on capital market. More over Fannie Mae is working on the territory of all the United States of America, everywhere from one coast to another.

But all Fannie Mae directions mentioned earlier have a common objective, because the Fannie Mae mission is to keep the average interest rates on mortgage markets, so it will be available for clients. And naturally Fannie Mae aims for earning higher profit operating with its REO.

Use this website to search thousands of Fannie Mae foreclosed houses including a lot of other bank foreclosure homes 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 foreclosure properties
• Freddie Mac REO homes
• Countrywide foreclosed homes
• BofA Foreclosures
• Fifth Third Bank REO 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.