Homepath And REO Stigma

[Vermonter]

You are right, not all are sold with defeasance clauses, but those that aren't sold that way, have to be marketed longer than those that are.

Owner Occcupant Buyers
When a home is purchased by a buyer for occupancy as a primary residence, they are considered to be owner-occupants. Fannie Mae offers owner-occupant buyers of its REO homes special consideration. The “First Look” provision excludes any buyers other than primary residency buyers from submitting offers on Fannie Mae REO listings. Some public entities and designates are the only others allowed to make an offer during the “First Look” period. Investors can still make offers during this period, but they won’t be given due consideration till the completion of the initial 15 days reserved for owner-occupants.
http://fanniemaereo.com/homepath-property/

The time limit on "First Look" for both Fannie and Freddie REOs, is usually longer than 15 days (like 45 days) here, but can't remember the last time one sold that fast.

They are typically pretty rough in my county. Price wise, they settle similar to any other REO baring a few outliers....but those are usually more about uneducated buyers than the condition.