No More Fannie Mae Loans on Alabama Foreclosures

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.

   

About Collier Swecker

Collier Swecker is a licensed real estate broker, attorney, blogger, speaker and entrepreneur. He is the founding partner of the Mega Agent Real Estate Team at RE/MAX Advantage which ranks as one of the top selling real estate teams in Alabama. Collier also acts as a business and marketing consultant for small business start-ups.

Collier graduated from Auburn University (B.A., 1998), Cumberland School of Law (Juris Doctor, 2002) and Washington University School of Law in St. Louis (Masters of Law in Taxation, 2003). Collier was the principal partner of the law firm Swecker and Sparks LLC for 3 years before leaving the law practice for real estate development and sales.

Collier is a native of Yorktown, Virginia and currently resides in Birmingham, Alabama with his wife, Amanda Capps Swecker. Collier & Amanda are the proud parents to a beautiful daughter, Julia Abigayle. They have one dog named Kramer.

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