Make us your home page
Instagram

Fannie Mae, Freddie Mac pony up incentives to sell foreclosures

Fannie Mae, Freddie Mac motivated to sell

WASHINGTON — Looking for a deal where the home seller pledges in advance to contribute potentially thousands of dollars to your closing costs? Here are two of the largest and most motivated sellers of foreclosed homes in the country:

Fannie Mae and Freddie Mac.

They now have massive numbers of properties taken back through foreclosures. Fannie Mae had 153,549 at the end of the first quarter. Freddie Mac owned 65,174. That's nearly 220,000 houses for which they need to find new owners.

To move that bulging inventory, both companies have time-limited sales campaigns with significant incentives for new owner-occupant purchasers — no investors — and even extra cash for real estate agents who bring buyers to the table.

Both Fannie and Freddie are offering to pay up to 3.5 percent of the price of the house toward buyers' closing costs; plus they'll hand over a bonus of $1,200 to participating real estate agents. Fannie's program covers properties that contracts are accepted on and close by Oct. 31. Freddie's sale requires contracts by July 31 and closings by Sept. 30.

Fannie's program even offers mortgage money to help finance purchases, sometimes with as little as a 3 percent down payment. The company also has what it calls a "renovation mortgage" option that provides additional mortgage amounts to cover fixups.

The foreclosed properties are listed with photos and descriptions at HomePath.com (Fannie) or HomeSteps.com (Freddie) in an easily searchable format. They range from expensive detached homes to low-budget condos, cottages and suburban tract townhouses.

The summer clearance sales are part of rapidly accelerating efforts by both companies to get ahead of the tidal waves of foreclosures flowing into their portfolios in recent months. In the first quarter of this year, Fannie Mae acquired 53,549 properties. But during the same period, it managed to sell 62,814 houses — a record number that produced a net outflow. Freddie Mac also sold more foreclosures than it took in during the first quarter, acquiring 24,709 houses while selling 31,628.

Both companies are targeting only buyers who plan to live in the homes — rather than non-occupant investors who want to flip or rent them out — as part of a larger neighborhood real estate stabilization effort.

Keep in mind that these are foreclosed properties and some have been abused by previous occupants.

And although foreclosures generally sell for less than nondistressed houses, understand that both Fannie and Freddie are in the business of maximizing returns on assets for their federal creditors. Do not assume the listing prices are deep-discount giveaways. Compare prices and values before bidding and negotiating — just as you would with any other real estate purchase.

Kenneth R. Harney can be reached at [email protected]

. FAST FACTS

Foreclosure deals

Some offerings in the Tampa Bay area recently featured on HomePath.com:

• Three-bedroom, four-bath townhome with 2,942 square feet in a gated community on Lake Tarpon in the East Lake area of Pinellas County for $289,900.

• Two-bedroom, one-bath home with 868 square feet in the Shore Acres neighborhood of St. Petersburg for $42,500.

• Four-bedroom, two-bath home with 1,706 square feet near the Northwest Recreation Center in St. Petersburg for $109,900.

• Two-bedroom, two-bath condo with 1,059 square feet in Town 'N Country for $27,500.

• One-bedroom, two-bath condo with 1,324 square feet near Gunn Highway in Tampa for $49,900.

• Two-bedroom, 1 1/2-bath home with 962 square feet in the Beacon Woods area of Hudson for $28,000.

Fannie Mae, Freddie Mac pony up incentives to sell foreclosures 06/25/11 [Last modified: Saturday, June 25, 2011 4:31am]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Special to the Times.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. City Council approves $5 million for Clearwater Marine Aquarium expansion

    Briefs

    CLEARWATER — The City Council on Thursday approved contributing $5 million to the Clearwater Marine Aquarium for its massive expansion project.

    Clearwater has agreed to contributed $5 million to the Clearwater Marine Aquarium 
's $66 million expansion project.. [ Clearwater Marine Aquarium] 


  2. Trigaux: Florida, Tampa Bay lagging in growth of their startups

    Economic Development

    The annual assessment of how entrepreneurs are doing across the country is out from the Kauffman Foundation — among the best watchers of the nation's startup scene. How do Florida and Tampa Bay fare?

    Lured by financial incentives, startup GeniusCentral relocated from Manatee County in 2015 to St. Petersburg, promising to creatye 40 new jobs. It took downtown space in an appropriately creative workpace for entrepreneurs. It did not last there, later moving back to less expensive space in Manatee. A new Kauffman Index report on entrepreneurship found that Florida is a good place to launch startups but a tougher place to grow them.
[SCOTT KEELER    |      TIMES]
  3. Pleasant dreams: sleep travel site gives high marks to Tampa airport

    Airlines

    TAMPA — Traveling might be considered closer to a nightmare than a dream for many. But that might be different for those who travel through Tampa International Airport. It was ranked the No. 3 overall best airport in North America by Sleeping in Airports, a travel site that tracks the best airports to catch some …

    Tampa International Airport was ranked as the No. 3 best overall airport by travel site Sleeping in Airports. | [Times file photo]
  4. Google parent leads $1B Lyft investment, deepening Uber rift

    Business

    SAN FRANCISCO — Google's parent company is throwing its financial support behind ride-hailing service Lyft, deepening its rift with market leader Uber.

    This  file photo shows a smartphone displaying the Lyft app.Google's parent company, Alphabet Inc., is throwing its financial support behind ride-hailing service Lyft, deepening its rift with market leader Uber. [Associated Press, 2016]
  5. ReliaQuest opens storefront in mock city of JA Biztown

    Economic Development

    TAMPA — ReliaQuest, a Tampa-based cybersecurity company, opened a "storefront" Wednesday at JA Biztown. The storefront is part of a mock city where students learn economic concepts and run businesses. About 20 real-life Tampa Bay companies sponsor storefronts that local students get to run for a day as part of a …

    ReliaQuest, a Tampa-based cybersecurity company, opened a "storefront" Wednesday at JA Biztown, a mock city where students learn to run businesses. | [MALENA CAROLLO, Times]