Length of Self-EmploymentFannie Mae generally requires lenders to obtain a two-year history of the borrower’s priorearnings as a means of demonstrating the likelihood that the income will continue to be received.However, a person who has a shorter history of self-employment — 12 to 24 months — maybe considered, as long as the borrower’s most recent signed federal income tax returns reflectthe receipt of such income as the same (or greater) level in a field that provides the sameproducts or services as the current business or in an occupation in which he or she had similarresponsibilities to those undertaken in connection with the current business.

Some of Fannie Mae's rules...More than half of the condo units must be owner-occupied.No owner may own more than 10% of the units.No more than 15% of owners can be delinquent on condo dues.All amenities must be completed if the development is more than 12 months old.Buyers who make a down payment of less than 25% will pay an additional 0.75% of the loan amount at closing or an interest rate that is about 0.25% higher.So a more complicated exit.

If the lien you bid on was subordinate to that of the Fannie Mae lien, then this foreclosure attorney was in error.

You have to know where the file is at with the bank.Is it in the foreclosure department,short sale department,customer service,collections,or loss mitigation.If the loan is owned by a small bank they tend to do workouts differently than the large ones.Options will depend on if it is Fannie Mae or Freddie Mac backed or it's a conventional loan.The process of lease optioning back to him is not allowed anymore and these are strategies investors use to use along with assignments and other things.The banks after short sales have grown in the last few years have systematized everything instead of flying by the seat of their pants on each file which is how we did them 3 to 5 years ago.It used to be a person in the loss mit department that would handle all the short sale files as the others didn't really know how to do them.As files grew the banks started up whole departments and hired file originators who were laid off from the loan origination side and moved to the loan default side.The banks have riders on all these types of strategies now where you would be committing fraud if you employed them.Once they enact a rule with addendums you have to find a new way to do deals and change strategies.If this person has recovered then their best best is to go after a loan modification especially if they want to hold onto the property.I am seeing permanent loan mods where the lender will put back payments into the loan.ExampleLoan is 140,000With back payments,penalties,interest,attorneys fees etc. now 150,000 is owed.Interest rate was 5% but now has adjusted to 8%They will adjust rate down to 2% for first 3 years,then 3% for 3 years, and so on and when they hit 5% keep that rate for the remainder of the new structures loan.The borrower might have to bring a few K to pay reinstatement fees and as not all back escrows and payments can be put into the new loan amount.The lender would rather do this than foreclose and take a big loss.The 3 month trial plans are easy to qualify for but the permanent restructures I mentioned are harder to get approved.If they deny the borrower for the first loan mod then they can ask for another.Many servicers can offer 2 to 3 different types of loan mod plans depending on the situation.Why would a servicer do this??

As an example, Fannie Mae and FHA have specific criteria that the 2nd note must have in order for the seller to carry back.As long as its structured correctly and it fits within conventional or FHA guidelines (assuming this is a 1-4 unit residential transaction) you'll be able to bring in less down payment.As an example if you bought a property and the loan is 80%, seller carries 15%, you could bring in just 5% on a 1 unit SFR/condo purchase and have no monthly mortgage insurance since there is 20% of money in front of the 80% loan (15% sellers, 5% your contributed equity/down payment).Banks dont care whose 20% is in front of their 80% loan it could your 20% down payment or a combination thereof as long as it fits within guidelines.

Fannie Mae removed the Continuity of Obligation requirement for rate and term refinances a few months back, but no one has given this type of transaction a Bigger Pockets-ism name.Hire a RE lawyer if it'll make you feel good, but a competent mortgage guy (I only lend on CA properties) could close this without any purchase contract or anything else.

Abandoning FHA 203k in favor of Fannie Mae HomeStyle Renovation might be the path forward. 

You can have 10 Fannie mae loans, then you have to go commercial after that.

@Keegan Mattick, most banks sell their loans to Fannie Mae or Freddie Mac.

:-(Has anyone heard of this or is it pretty normal with Fannie Mae or any REO for that matter?