Fannie Mae foreclosure

The Fannie Mae foreclosure process follows the pattern of the standard foreclosure process. A Fannie Mae loan is a conventional loan for people with good credit. Fannie Mae or FNMA (Federal National Mortgage Association)is a privately owned corporation that buys mortgages, packages them and resells them on the secondary market.

Fannie Mae provides liquidity to the mortgage market. The way it works is that the bank lends you the money, then it sells your loan to Fannie Mae. Because the bank sells your loan, it gets the money it just lent back and can use it to provide a loan to someone else. The bank can continue to make loans because its money comes right back.

This all works great until you fall behind on your mortgage and it becomes difficult to determine who the owner of your mortgage is. If this happens to you, the company sending you the bill (also known as the servicing company) will be instrumental in pointing you in the right direction. Otherwise, the foreclosure process is the same as for any other loan.

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