Four Facts About Freddie Mac REO & Community Stabilization
The lingering housing downturn is causing more and more "bank-owned" for sale signs to pop up in neighborhoods across the country. In fact, they currently account for about a third of all home sales in the United States. Although Freddie Mac's inventory of foreclosed homes has been falling and represents only a small share of all real estate owned (REO) properties, we understand the negative impact these homes can have on neighborhoods and communities. That's why our policies and programs are designed to maintain home values, reduce losses, and stabilize communities.
Here are four little-known facts about Freddie Mac REO – important facts that often get overlooked in the national conversations about REO's impact on communities.
Resources For Buying Freddie Mac-owned Homes
- Visit http://www.homesteps.com/ and search for homes by city, price, state, or number of bedrooms.
- Find a local agent or broker that is licensed to sell Freddie Mac homes.
- Register for our free HomeSteps HomeBase membership network and let it do the home hunting for you. As a member, you’ll receive custom property lists emailed to you weekly, along with information about new sales promotions and educational seminars.
More than 70% of REO homes are sold to owner-occupants – buyers who intend to live in the homes as opposed to renting them out. Most of our marketing and sales strategies are geared toward attracting owner-occupants, and include incentives for both the real estate agents and prospective homebuyers.
While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area. In addition, we do not typically consider any offers that require significant discount pricing.
Homes are well maintained. Our "Good Neighbor" property preservation and maintenance best practices are designed to ensure that buyers purchase Freddie Mac homes in move-in condition, and that property values are maintained for neighborhoods. These policies mandate that within three business days of a confirmed vacancy, each home is secured, preserved, and cleaned. Then we continue to monitor and look after the home until it's sold, including maintaining the landscaping.
Homes sell for an average of 94% of market value. Because our homes are well maintained and priced right for the local market and homebuyers, most of our homes sell close to full estimated market value.
Sales are outpacing acquisitions. We sold a record number of single-family REO homes in the first nine months of 2011 – more than 80,000 – and we are selling more homes than we are taking in through foreclosure. Thanks to our innovative sales strategies and top-performing broker network, our homes are selling in approximately four months – or about 120 days.
All data for the nine months ended September 30, 2011
Have a comment or question about this post? Email us to let us know what's on your mind.