Fannie vs Freddie

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Fannie Mae or Freddie Mac…both of them are acronyms for the initials of other long names…    Suffice it so say that the majority of the foreclosures on the market are owned by one or the other of them.

For the most part, the transaction for both of these entities runs the same.  Both of them hire agents to list their properties and I schedule showings and present offers to a listing agent as in a private sale.  Both of them come with additional  purchase agreement paperwork.  Both of them give owner/occupants the first opportunity to make an offer on a property (usually 15 days).  Both of them will provide owner’s title insurance – but you should buy broader coverage!!

One advantage you get with a Freddie Mac property is that they are typically inspected prior to listing. Some repairs, particularly safety issues, may be completed at that time.

VERY IMPORTANT:  Here’s something new!  Up until a couple of months ago, Fannie and Freddie have been EXEMPT from paying State and County Transfer tax.  Then a certain county in Michigan challenged their right to not pay it.  Sadly, they have, in their contract paperwork, transferred this cost off to the Buyer’s.  On a $100,000 house, this is an additional $860 in closing costs.

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