Foreclosures Revisited…

Fourth Point: Fannie Mae’s new rule announced and effective last week that it would no longer accept loans for properties with unexpired rights of redemption as such properties are deemed as having unacceptable title defects. While it is true that not all loans are Fannie Mae loans, Fannie Mae is seen as the maker of the secondary market in which loans are re-sold. Therefore it is reasonable to assume that other will follow suit. In Alabama, one of two states with a 12month standard right of redemption, the new rule will certainly favor investors who typically operate with private funds. Other investors operating outside of these guidelines may end-up charging a bit higher interest rate for properties with unexpired redemption periods. The jury is still out on this one.

Final Point: As always, I remind you that all Real Estate Markets are local. Check with a qualified Realtor® for detailed information about the situation in your target micro market.

May the market be with you.

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