Collier Swecker video blogs about Fannie Mae’s decision not to accept loans on homes with unexpired redemption periods. This effectively means that they will not accept any loans on foreclosures in Alabama within 1 year of the day of foreclosure by the original lender. Fannie Mae considers the redemption period an unacceptable title defect and will only accept the loan after this redemption period has expired. This will affect the real estate market to some degree because Fannie Mae accounts for such a large percentage of home loans in Alabama. I am especially concerned for investors who are ready to invest in foreclosures, fix and flip them to permanent homebuyers. There is an extremely large number of buyers that would be utilizing a Fannie Mae loan and now cannot do so. As a result this will shrink some of the buyer pool for investors and would make me think twice before investing in a foreclosure for investment. The good news is that most of the local Birmingham mortgage companies have found banking investors that will hold loans that otherwise qualify for Fannie Mae and will transfer them to Fannie Mae after the redemption period has expired. This is a great example of the private sector innovating loan solutions in response to a governmental program’s action that will cause disruption to an entire industry. If you have any comments or questions about Fannie Mae no longer insuring or underwriting loans on foreclosure homes in Alabama, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.