REO Property - Bank vs FNMA

[Chris Garrett]

I understand that the majority of loans in the US are backed by FNMA or FHLMC. What I'm confused about is what dictates who ends up with the property after it's foreclosed upon and becomes an REO. For instance, if the mortgage for a property is backed by FNMA and the property ends up as an REO, does FNMA now have possession of the property, or does it go back to the bank who originated the loan?