Tehama Country Real Estate

Tehama Country Real Estate – Real Estate Spotlight By Alex Mason What Are Freddie Mac and Fannie Mae? F America to ensure there is enough reddie Mac and Fannie Mae affordable housing to go around. are two familiar names. However, what they do for us remains a mystery to many people. Besides aiding the home buyer's market, Freddie Mac has a proven track record to help keep rent to a Unlike the mythical Uncle Sam, manageable level in many situations. Freddie Mac and Fannie Mae have Over 90 percent of Freddie Mac real roles to play in the lives of mil- financed commercial units were able lions of prospective home buyers to provide lower rental fees than and just may be the lifeblood to those projects funded without the close a real estate deal. Your Freddie guaranteed backing. Mac and Fannie Mae services extend far beyond just buying a home, so let's take a look Freddy Mac and Foreclosures at what else these colorful companies can do for us. The Freddie Mac company has also assisted dis- Freddie Mac and Fannie Mae tressed borrowers by putting them in touch with a lender who can help. The foreclosure rate without The Freddie Mac and Fannie Mae companies are Freddie Mac assistance was much higher than the privately owned institutions that assume loans on cases of borrowers who were under the umbrella of the government's behalf. The Freddie and Fannie. goal of Freddie Mac and Fannie Mae is to expand the Freddie Mac has launched mortgage market and widen successful the opportunity for more stave off or thwart an evic- borrowers to close a real tion and has proven itself a estate deal. valuable service to both campaigns to lender and borrower. They are an entity that backs the mortgages in case Buying A Freddie Mac Foreclosure the borrow should default. This practice gives banks the reassurance that if the In some instances, a borrower may not be able to mortgage loan goes sour, they will not take the full sustain their current mortgage or even a lower one financial brunt. offered by the lender. A borrower may lose their job, succumb to illness or have internal difficulties withFreddie Mac was initiated by Congress to help the in the home such as divorce. average American get funding for a home. Freddie Mac brings stability to the mortgage industry by As a last resort, the Freddie Mac property will go securing the secondary loans by selling mortgage- into foreclosure. However, the good news for buybacked securities to private investors. ers is that the foreclosure inventory is placed back on the market at a good price to attract a sale. Check Although Freddie Mac does not write a mortgage with your local real estate professional to get a listloan directly to the borrower, they do, however, ing of Freddie Mac homes for sale. You may also snap up the loan papers from the lender. This browse through various Web sites, but you are well process helps to keep the banks flowing with cash advised to use a buyer's agent to secure the properand able to assist new clients in need of a mortgage ty without a hitch. loan. The buyer's agent is free to use, provides a valu- Freddie Mac and Fannie Mae's Contributions able service and can match you to the right Freddie In addition to assisting the lenders with a greater Mac property to meet your budget and expectalending cash flow, Freddie Mac and Fannie Mae tions. help to keep the housing prices under control. This does not apply to high-end housing or areas subject to massive inflation, but rather caters to middle Alex Mason is a former real estate agent and mortgage broker living in Los Angeles. 3

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