What Are Fannie Mae Foreclosures?

Fannie Mae itself provides some mortgage loans. A Fannie Mae foreclosure refers to a property that was seized after a borrower failed to pay off the mortgage on that property to Fannie Mae, the lender. In this situation, Fannie Mae takes over ownership of the property and acts to sell the property to a third party, usually at a lower price in order to complete the sale quickly and to recuperate the money lost on the loan. As such, Fannie Mae foreclosures are a good opportunity to buy a home at a low cost.