Freddie Mac offers incentives on REOs

Freddie Mac has come up with a summer sales promotion to promote its inventory of foreclosed homes. This is being done through Freddie Mac’s real estate sales unit, HomeSteps.


The promotion, which is an extension of Freddie Mac’s First Look Initiative program, hopes to boost sales of foreclosed homes by offering up to 3.5 percent in closing cost assistance to homebuyers. The promotion also offers a $1,200 signing bonus to buyer’s agents for offers received between May 16, 2011 – July 31, 2011 and escrow closings no later than September 30, 2011.

Fannie Mae, which offered a similar closing-cost incentive this past spring on its HomePath properties, requires escrows to close before June 30, 2011. Fannie Mae has also advised that offers submitted after May 15, 2011 may not meet the June 30 deadline.

Similar closing-cost incentives offered by Fannie Mae on HomePath properties this spring require escrow to close by June 30, with Fannie Mae advising that offers submitted after May 15 may not meet that deadline.

The HomeSteps summer sales promotion is not available for investors. This offer is valid only on HomeSteps homes sold to owner-occupant buyers. People taking advantage of this promotion don’t need to be first time homebuyers to be eligible, but they must buy the home as their primary residence.

As an example of savings through this offer, if the purchase price of your home is $150,000, HomeSteps will pay up to $5,250 towards your closing costs. However, it must be noted that HomeSteps will only pay up to 3.5% of your purchase price in closing costs, not to exceed the total closing costs. For example, if your purchase price is $125,000, and your closing costs are $4,250, HomeSteps will only pay $4,250, an amount equal to 3.5% of your purchase price. In any event, HomeSteps will not be obligated to pay any closing costs if you do not pursue and obtain financing for a qualifying home. You will pay all closing costs not covered by HomeSteps.

To make the offer even more enticing to buyers, HomeSteps is throwing in warranty benefits through SmartBuy. Since the home is a foreclosure property, it may have had damaged or missing appliances and systems prior to closing, Home Protect provides discounts of up to 30% on repairs for these instances. It also provides discounts of up to 30 percent on the purchase of appliances. This gives buyers some peace-of-mind, knowing that their home and budget are protected. The two-year Home Protect limited home warranty covers electrical, plumbing, air conditioning, heating and other major systems and appliances.

According to Fannie Mae, its REO inventory was up 39 percent to 153, 224 homes from March 2010. Fannie Mae reported 65,159 single-family homes in its REO inventory at the end of March, which was up 21 percent from March 2010.

Homes in foreclosure may sell more quickly this summer due to the HomeSteps summer sales promotion. To take advantage of this great offer, contact one of our real estate agents to show you HomeSteps homes in your area.