By Sean Patrick O'Feery, July 11, 2018
Let’s talk about what you might expect from the process:
What is HomePath.com?
- HomePath.com from Fannie Mae is a website and a process of selling foreclosed homes. The homes can be foreclosed upon by many different lenders but if the institution is insured by Fannie Mae that foreclosed home will likely be sold through the HomePath system.
What is a HomePath home?
- It is a foreclosed home now owned by Fannie Mae and offered for sale by a local listing agent to the public for purchase.
Why would I consider a HomePath home?
- They can be listed for less than market rate
- If it is in the right location and suites your needs
How are HomePath homes priced?
- HomePath homes are priced by a combination of factors- a local listing agent has the opportunity to provide suggestions and a local private appraiser can be used but Ultimately they are priced by Fannie Mae determines the sales price. I’m fairly certain that Fannie also takes into consideration the remaining balance of the loan when they price the home.
What can I expect from a HomePath sale?
Please understand this is my opinion based on a very recent sale and results may vary, but I’m happy to fill you in to this experience.
- Lots of paper work: You’ll fill out a standard Residential Sales Agreement used for all sales and also the forms for the HomePath sale.
- Signing: Signing was tough for my clients because, in our case, HomePath does not accept any electronic signatures so they’ve all got to be in person (wet signatures) with the right pen in the right location on the document. To minimize errors, we all went to listing agent office and signed paperwork.
- Documentation for addendums or changes to the original contract (Sales Agreement): HomePath does not recognize Oregon State RE addendums, they have their own. If there are any changes to the contract, you’ll be asked to use their form and again provide in person signatures
- Timeframe: Fortunately, we had a great lender in Gary Boyer from Directors Mortgage. The rate lock was not an issue, but for my clients this was a challenging component. The sale eventually took only about two weeks longer than the 35 day contract we wrote to start with, so in total, it was about a 50 day closing.
- Communication: Usually you’ve got an individual seller and a buyer both very interested in the process and communication can be prompt. In the case of our HomePath sale, the listing agent was very responsive but had to wait to hear from the HomePath representative before doing almost anything. It was the waiting to hear back on simple items that I feel caused my buyers the most frustration. I kept in close contact with my buyers but made more than a few phone calls to let them know ‘there have been no updates’.
- Repairs: Usually there is an inspection and then negotiations for repairs. In the case of HomePath homes there will only be repairs if for some reason the home can not be sold as is or if it is lender required and contingent to the sale. Even when we had two quite simple items called out by the appraiser it was like pulling teeth to get it done. We got it done, but with little help from the ‘seller’.
All in all, it was not as bad as I have heard from other agents and there is certainly some opportunity there at the price point.
Be patient and find an buyers agent who is willing to work closing with you through this process. I of course would be thrilled to be of service!
If you would like genuine, focused and sincere representation in the sale or purchase of your home please call or email, providing excellent service has been a long-standing source of pride.
Earth Advantage & ADU Specialist Broker