Fannie Extends REO Discount Deadline

Fannie Mae (FNM) extended its seller assistance incentive on all of its HomePath properties this week. In February, Fannie began providing a 3.5% discount to buyers of its REO properties listed as part of its HomePath division. The discount can be used for closing cost assistance or the buyer’s choice of appliances. The original offer was set to expire on May 1, 2010. Now, Fannie pushed the deadline for any owner-occupant who closes on the purchase of a property listed on HomePath by June 30, 2010. “We are happy with the results of the program, which has helped us to sell properties quickly, thereby stabilizing neighborhoods and property values,” said Terry Edwards, executive vice president of credit portfolio management at Fannie. The HomePath properties may also be eligible for special financing, which could allow buyers to purchase REO with 3% down. Write to Jon Prior.