Fannie Mae announced that it will cover the closing costs on purchases of its foreclosed properties. This means that buyers will receive 3.5% of the final purchase price. The money can be used towards closing costs or for new appliances.

Escrow or closing deadline is May 1, 2010.

Another incentive offered is to only require 3% down on home purchases through HomePath Mortgage. Fannie Mae finally realized that the best way to help the real estate market recover is to get the foreclosed properties off the market. Fannie Mae is hoping that many home buyers taking advantage of the federal tax credit available now will purchase a Fannie Mae home.

Buyers, especially first time home buyers, can score a home run by getting a great deal, receiving the first time home buyer credit of $8000 and also getting additional help from Fannie Mae on the purchase of a Fannie Mae property.

WASHINGTON – In order to spur economic real estate activity, the 90 Day No Flipping Policy will be waived by FHA for one year effective 02/01/2010.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.

Yes. It’s true. Wachovia, part of Wells Fargo Bank, is helping homeowners to sell their home to pay off their Wachovia and World Savings Loans. Wachovia is taking a proactive approach because they lose less money if they work out a short sale rather than foreclose on a homeowner.

Hands down, a majority of the time, it is better for the homeowner and bank to work out a short sale agreement rather than go through foreclosure. Short sale is when a home is sold for less than the mortgage. Wachovia is offering homeowners something other banks are not offering right now. Here’s a few of the many benefits that Wachovia is offering to help homewoners sell their home. For one, they are offering approval in days and not months. Second, you don’t have to be behind on your mortgage to get qualified. Third, no lengthy mountain of paperwork and financial information to provide.

We have direct contact with the Wachovia Manager who can approve these loans from anywhere in the country. Call us immediately at (661) 726-0696 to find out more information on your Wachovia or World Savings Loan. If you don’t have a Wachovia or World Savings Loan, call us anyway. There are solutions and options for homewoners other than foreclosure.

Call to discuss your options and ask to speak with a short sale specialist at (661) 726-0696. You have nothing to lose. No pressure, no commitment. We’re here to help.