They’re essentially selling the debt to other banks which will either modify the loans, negotiate short sales, or foreclose, same as FNMA is doing itself. For small investors looking to buy properties, no difference, except that the properties that were foreclosed will end up on the new loan owner’s sites instead of on Homepath.com.
In order to gain a rentable property, this will involve going through the entire pre-foreclosure and foreclosure process. Better to buy an REO, short sale, or sheriff’s sale after someone else has gone through the legwork.
