Foreclosed homes can be a win for buyers. But agents can lose out when they work with people who can only afford cheap homes.
"The problem is we don't have a lot of money right now," said Ronald Clark.
He's in the market for homes under $70,000 but he says he's been turned away by realtors.
"I called one real estate and they wouldn't even talk to me,"
But a new government incentive is trying to prevent the practice and unlock the key to homeownership for people like Clark.
"Some realtors will turn away business that's under a certain amount."
Realtor Haro Setian says the new incentives offered by Fannie Mae will encourage more agents to take on clients that otherwise would cost more time than the low commission is worth.
One of his clients has bid on this foreclosed home in Taylors worth 69 thousand. Under normal circumstances he'd get a $2000 dollar commission. But the new incentive adds $1200 to that.
And there's an added bonus to buyers. They get 3 and a half percent off their closing costs.
"In order to qualify for the incentives, you have to be under contract no later than the end of july and close by the end of September."
Setian says it's too soon to tell if the program was worth the tax-payer dollars, but getting foreclosures off the market is a key benefit.
"Once those are gone then you'll have some stability in the market place."
Clark is relieved to learn he me not be turned down.
"It makes you feel bad."
Visit HomePath.com (Fannie) and HomeSteps.com (Freddie) to see the existing inventory.
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