Fannie-freddie-hudIf you are considering buying a foreclosed home you should be aware of the First Look Initiative on Fannie Mae, Freddie Mac and HUD foreclosed homes.

This plan was initiated in the fall of 2010 because buyers who planned to live in the homes they were purchasing were having a hard time competing with cash investors who were snatching them up before most people even knew they were available for sale.

The First Look program supports homebuyers who plan to occupy the home and help stabilize the community by eliminating competition from investors.

In most cases the first 15 days a foreclosed Fannie, Freddie or HUD property is on the market sales are restricted to owner occupant homebuyers or nonprofit Neighborhood Stabilization programs (NSP). If you purchase a home during the restricted time period you will be required to sign an affadavit confirming you will occupy the home as your primary residence within 60 days and will live there for at least one year. If you don't, you may be subject to a $10,000 fine.

No one who signs the purchase agreement during the restricted time period can own another property. That means if you have a co-signer who owns another property you won't qualify even if you are the primary buyer and you plan to live there.

While investors play an important role in the foreclosure market, owner occupants better help stabilize communities. It is the goal of the First Look Initiative to promote owner occupancy and homeowner involvement in their community.

Sharlene Hensrud, RE/MAX Results –



About Sharlene Hensrud

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity

Related Posts

Buying a Short Sale

If you are searching for a home to buy there is a good possibility you have come across some short sale listings. They currently make up nearly 21% of homes available for sale in the Minneapolis-St. Paul metro area… but only about 11% of closed sales.   It is a common misconception to think that a 'short.

Read More

Preparing to buy, sell, downsize… tips on how to begin

We work with people in all stages of housing transitions… from renting to buying a first home… moving up because of growing family, schools, jobs… downsizing because of life changes, as part of retirement planning… relocating for a variety of reasons… One of the first questions is often "Where do I begin?" Here are some.

Read More

What is a short sale? Why do many people say 2012 will be the year of the short sale?

A short sale occurs when the amount owed on a property is more than it is worth and the homeowner is not able to pay off the mortgage(s) when the property is sold. The homeowner negotiates with the bank(s) holding the mortgage(s) to accept less than the full balance of the loan(s) at closing, selling 'short'.

Read More