Classic Government
JEFF CLABAUGH FROM THE WASHINGTON BUSINESS JOURNAL BRINGS US A TIDBIT THAT EXPLAINS WHY WE ARE WHERE WE ARE! In a recent posting, I shared the fact that when a property is sold as a bank owned property; they are sold at an average discount of 36% below retail. When a short sale is purchased, they are sold at an average discount of 15% below retail. Well, the government has decided to bring back a much lauded program…with a twist.
DO you remember when 1st time home buyers were given an incentive to purchase a house last year? Based on everything that I heard, the program was a resounding success (shocker that our government actually introduced a successful program that helped the recovery!) Well….instead of bringing this program back, the government is encouraging buyers to wait until a house is foreclosed on before buying! You see, when someone buys a house that is owned by Fannie Mae, the government will give the purchaser a 3.5% (of the final selling price) credit to pay for closing costs!
I don’t know about you but simple math tells me this: If a house is worth $100,000, I can buy it for $85,000 as a short sale and pay for closing costs. However, if I can wait a little longer I can buy a similar house for $64,000 AND get a $2240 credit for closing costs! This is so stupid that it belongs on SNL!
Fannie Mae offers buyer incentives
Washington Business Journal – by Jeff Clabaugh
Fannie Mae is reviving buyer incentives first offered last year as it tries to unload all the foreclosed houses it is sitting on.
If you buy a house Fannie Mae is holding as a result of a foreclosure, Fannie Mae will give you up to 3.5 percent of the final selling price to be applied toward closing costs. The sale must closed by June 30.
Fannie Mae already offers lower rate mortgages and renovation financing to buyers who buy one of its foreclosed homes.
Last year, Fannie Mae (OTC BB: FNMA) gave real estate agents and brokers $1,500 bonuses for bringing buyers to the table.