At the end of August, FNMA (Fannie Mae) has imposed a new rule preventing investors from bidding on FNMA-owned foreclosed properties for 15 days, allowing owner occupants to have first dibs.
The Good:
Buyers, typically looking at lower price tags, often get out bid since their financing and other contingencies weaken their offer. Investors, especially ones paying cash, instantly look more appealing as transaction time decreases. Waiving other contingencies beyond financing, such as inspection and survey, only increases buying power for investors.
The Bad:
As an investor, the process is frustrating. HUD, having a similar time restriction policy with investors, has built an outlet for buyers to gain a lead in the game. If all of the agencies move toward this process, are investors out of the picture?
The Question(s):
Will it work? Is this fair? Is Freddie Mac next?
Read more in the Arizona Republic >>>
