Buying Fannie Mae properties can be a great way to save on all kinds of great real estate. Since Fannie is a lending agency, they sometimes have to deal with repossessions and foreclosures. When a homeowner defaults on a mortgage, Fannie Mae lenders will seek to repossess the home as a means of recovering the unpaid loan. They then sell the properties as foreclosures with some of our local real estate agencies through our Santa Cruz County Multiple Listing Service.