Friday, October 16, 2009

How to Buy a Freddie Mac Foreclosure

How to Buy a Freddie Mac Foreclosure

Freddie Mac, one of the 2 quasi governmental mortgage buying companies and sister company to Fannie Mae (the largest), published this document on how to purchase a HomeSteps Mac foreclosure/REO, 5 Easy Steps to Buying a HomeSteps Home.

According to the document, a potential buyer, or their agent should do the following 5 things in order to give them the best shot at buying a Freddie Mac foreclosure.
  1. Prepare your offer, signed by the buyer(s), in writing on your local or state contract.  The seller should appear as "Freddie Mac."
  2. Include signed copies of the following HomeSteps addenda: (1) the Single-Family Real Estate Disposition, (2) the Lead-based Paint Disclosure addendum, (3) Property Condition addendum and release, (4) State Riders (if applicable) and (5) Manufactured Home addendum (if applicable). These addenda are available from the listing agent. Please reference them in the contract, and remember, no changes are allowed to the addenda printed text.
  3. Submit a buyer pre-qualification letter with the purchase contract and addenda to the listing broker. The listing broker must have all required documentation prior to presenting the offer to HomeSteps.
  4. Negotiate the written offer verbally until final agreement is reached.
  5. Submit final terms on a clean, typed contract with buyer’s original signatures and initials, along with all required addenda. Return the executed contract and any additional deposit monies to the listing broker no later than three (3) business days from the verbal acceptance by HomeSteps. If the contract is not returned timely, HomeSteps (Freddie Mac) may withdraw its verbal acceptance to sell the home at the agreed-upon terms.
According to the document, HomeSteps (Freddie Mac) will not agree to the following items:
  • Offer contingent on the sale of buyer’s current residence.
  • Buyer(s) to occupy or store personal items at the home prior to closing.
  • Buyer(s) allowed access to the home to perform repairs prior to closing.
  • Buyer(s) to receive credit at closing for repairs not completed.
  • Repairs after the buyer(s) signs the closing documents.
  • Seller’s funds to be escrowed
According to the Freddie Mac document, the following persons are not eligible to purchase Freddie Mac-owned homes:
  • HomeSteps suppliers (including listing agent, agents within listing broker’s offices, all independent subcontractors, etc.), their employees and/or their immediate family members.
  • HomeSteps or Freddie Mac employee or member of his/her immediate family or household.
If you are a home buyer in Middle Tennessee who would like to purchase a Freddie Mac foreclosure, a Fannie Mae foreclosure, another foreclosure or REO, a short sale, or other distressed real estate in order to get a home at a low price, please contact me, or visit my website Search the Middle Tennessee MLS - Find Middle TN Short Sales, Pre-foreclosures, Foreclosures & REO's so that you can find foreclosures, short sales and other distressed real estate and homes in Middle TN.  I help home buyers in Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN and Belle Meade TN.

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