Here's an article that broached the subject of buying a foreclosed home from a *bank*:
Foreclosures Can Offer Deals, but Buyer Beware
Fannie Mae does give prospective homebuyers a leg up. Last month, it introduced a program that shuts out investor buyers for the first 15 days a home is on the market. Moreover, Fannie also has a financing program, which allows buyers to put down as little as 3 percent and doesn’t require them to carry mortgage insurance. It also provides loans that allow borrowers to wrap in costs for home renovations.
Freddie is testing a program that also initially shuts out investor buyers, and it is currently offering consumers who buy one of its properties up to 3.5 percent of a home’s purchase price, which can be used for closing costs, moving or even furnishings. The program was recently extended to buyers who submit a purchase offer by Jan. 31 and close by March 26. Primary homebuyers are also eligible for a two-year warranty on certain home repairs.
The title - Buyer Beware - is obviously ridiculous.
It's more like - Buyer Rejoice!
Rejoice because they don't have to compete with *investors*, Fannie will *finance* the purchase (i.e. merely change the name on the house!), no mortgage insurance is needed, AND Freddie will even donate what amounts to a taxpayer-backed HELOC on top of the taxpayer-backed no-money-down mortgage!
This country is doomed.