By Kevin Chiu
The real estate crash has sent the nation’s two troubled mortgage giants back into the home selling business. Freddie Mac and Fannie Mae will auction off hundreds of foreclosed homes to start with in a program designed to eliminate bargain hungry investors. The program is expected to expand to offer thousands of foreclosed homes in coming months.
First time home owners will be given preference in the Fannie Mae auction scheduled for Phoenix April 11th, and Freddie Mac auctions set for April 24th and 25th.
Freddie will auction off hundreds of homes to buyers in Las Vegas and in California’s Inland Empire, two housing markets that have been severely impacted by the foreclosure crisis. The sales will be handled by HomeSteps, the real estate sales unit of Freddie Mac, charged with marketing foreclosure properties owned by Freddie.
Under the Neighborhood Stabilization Program (NSP) implemented by the Obama administration home buyers are eligible for closing costs and down payment assistance buying foreclosures in communities designated as being hard hit by the foreclosure crisis, according to Freddie Mac officials.
“Freddie Mac’s first-time home buyer auctions in Las Vegas and in California’s Inland Empire builds on our long-standing effort to use our REO inventory to foster new opportunities for new homeowners,” said Ingrid Beckles, Senior Vice President, Default Asset Management at Freddie Mac.
The Las Vegas and Riverside area auctions target first-time home owners approved for the NSP program. The two auctions will be held April 24 and 25 for bidders who qualify that intend to occupy the homes. The winning bidders may still qualify for the federal first time home buyers tax credit scheduled to expire April 30th. The tax credit offers eligible first time buyers up to $8,000.
Under the government program buyers will be able to receive up to 3.5% on closing costs. The homes being auctioned-off have been removed from the market and necessary repairs have been made to make them in livable condition. For more information on how the program works visit Home Steps dot com. The plan also provides a two year limited home warranty on homes that are sold when the purchase price exceeds $25,000.