Homepath Friend or foe?

I was recently involved in purchasing one of these properties. I am under the impression that these people have no idea of the value of the properties and are gambeling with possible buyers. Very bad.  Unfortunately their contracts practically require you to spend money upfront quickly only to possible find out the property did not appraise and deals go busto.  They are encouraging homepath financing that does not require appraisal, but sad to say buyers who are desperate are overpaying for properties. The appraisal protects buyers and the community. I am just glad Fannie Mae does not own every property or else we would be back to square one. For some people who can take advantage of the low rates..3.6% vs 4.5 (the least) or higher for homepath over the life of the loan..you do the math. Homepath is a rip off, but a way to get less qualified buyers into homes.