There's some good news on the foreclosure front!

Fannie Mae has made it easier to purchase foreclosures. They will now cover the closing costs on purchases of its foreclosures (REO's), in hopes of reducing its over-supply of repossessed foreclosed properties.

It's a seller-assistance program under which people purchasing a Fannie Mae foreclosure will receive up to 3.5 percent of the final sales price, which can be applied toward closing costs. Additionally, the buyer may use this program to purchase appliances for their new home.

This program is only temporary so you'll want to take advantage of this soon, closing your purchase before May 1, 2010. Other restrictions apply – you must be an owner-occupant buying a property for yourself, as investors are excluded.  HUDforeclosed.com includes Fannie Mae's homes in its database of foreclosure listings - just select 'Fannie Mae' in your search and you’ll have instant access to these listings. You can submit offers anytime on or after January 28, 2010.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, EVP of credit portfolio management for Fannie Mae. "Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help."

Recent data from Fannie Mae show an escalating rate of seriously delinquent loans, which means even more foreclosures could be becoming available in the near future. To find these PRE foreclosures, search HUDforeclosed.com's database of NOD and Lis Pendens listings.

You can also read more at
http://www.fanniemae.com/homepath/incentive/index.jhtml