Many homeowners today have decided just to stop making their mortgage payments. When mortgage payments stop, there is usually some time period before the lender will call the note and take action to get back the property.

When the lender that holds the mortgage takes back the property for nonpayment  there is a period of time where nothing really happens with the property.  The term for this hold period is called “shadow inventory” by the real estate world. Not all properties are released for sale immediately, because such a rush of new homes for sales can cause an even worse marketplace for real estate.  No one really knows how many properties are out laying dormant in the shadows just waiting to be put on the market for sale.

When these properties finally work their way through the system and show up listed in the marketplace, they are listed or sold at a price well below the market.  The primary reason for these  below market cost reductions is simple; lenders don’t want the headache of keeping up with a vacant property.

Good news for Delaware, Maryland, and Pennsylvania Homebuyers

You are in  the drivers seat, since this is a buyers market and if you have the will, now is the time to purchase the house you’ve always wanted, but thought the price was too high.

Many of the homes being released from the shadows are owned by Fannie Mae and Freddie Mac.

Fannie May HomePath

Fannie Mae has two programs called HomePath and HomePath Renovations.    There are benefits with going along with a Homepath financing, which usually include about 3% help to offset closing costs and many cases, you may incur no real estate transfer tax. 

HomePath Mortgage is available for move-in ready properties.  These are properties that typically need little or not renovation.  However, not all properties are move-in ready. The  HomePath Renovation Mortgage provides both a mortgage to purchase and funds to renovate the home all in one loan. 

Freddie Mac has a program called HomeSteps.

To see if you qualify:  CLICK HERE

Freddie Mac First Look Initiative

Freddie Mac will offer homebuyers and select non-profits an exclusive opportunity to purchase HomeSteps homes prior to competition from investors through the Freddie Mac First Look Initiative. This on-going initiative offers owner occupant homebuyers, the ability to purchase HomeSteps homes during their initial 15 days of listing (30 days in Nevada), without competition from investors. T

The purchaser does not need to be a first time homebuyer to be eligible provided, however, that they are buying the home as their primary or secondary residence.

HomeSteps SmartBuy

HomeSteps SmartBuy  offers a home purchase program that offers:

• A limited two-year HomeProtect® Home Warranty* [PDF]
• Up to 30% savings* on new appliances

Buying a HomeSteps® home may be a smart move for you!

*Certain restrictions, limitations, terms and conditions apply. See HomeSteps SmartBuy Terms and Conditions for further details.

Homebuyer Incentives**

• Up to 3.0% buyer’s closing cost

**HomeSteps homebuyer incentives are available to owner-occupants purchasers only.

To see if you qualify:  CLICK HERE