Over the past few years, I have had the opportunity to sell many foreclosures. Every company seems to have its own procedure to handle foreclosures, but the oddest procedure is probably Fannie Mae's.
Fannie Mae (and Freddie Mac and some of the larger banks) only allow owner-occupants to make offers on properties for the first 15 days of a listing. This is supposed to keep investors out and allow home owners to get an opportunity to own a nice home at a reduced cost. But it doesn't really work that way.
Fannie's definition of an investor is two-fold. First, if you don't intend to live in the home, you are an investor. Second, if you already own property somewhere else you are an investor. So, if you own property in Iowa, and want to move to Arizona before selling in Iowa, you are an investor in Fannie's eyes.
It used to be that on the 15th day, there would be multiple offers from investors - all over list price. That is no longer the case now that housing values have been on the rise, credit is harder to get, and homes under $100,000 are so hard to find now.
Here is some graphical info about pending foreclosures and where the foreclosures are:
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