Fannie and Freddie announced today that they will allow foreclosed homeowners to buy back their home, post foreclosure, at the market value of the property. This is a big reversal from a previous policy of requiring the foreclosed homeowner to pay the full debt to purchase the property.
The old policy created two standards post-foreclosure for purchasing REOs: (1) a third party purchaser could pay a reasonable price at today's market level; while, (2) the foreclosed homeowner needed to pay tens, sometimes hundreds, of thousands more in late fees, interest and attorney costs. Now, the new policy would allow homeowners, whose homes have already been foreclosed, to repurchase the property for the same price a potential third party purchaser could.
Currently, there is no information as to whether the policy will apply to homeowners not yet in default.