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Daily Real Estate News  |  May 19, 2011  |   Sell an REO, Get a Bonus Through Freddie Mac
Freddie Mac wants to get its REO properties moving so it’s offering up several incentives, including a $1,200 bonus to buyers' agents for initial offers they receive on HomeStep properties by July 31. To be eligible, escrow must close by Sept. 30.

The incentive only applies to Freddie Mac’s HomeSteps properties sold to owner-occupant buyers and does not apply to investor purchases.

Freddie Mac is also offering up extra incentives to entice buyers: The government-sponsored enterprise (GSE) is offering up to 3.5 percent in closing cost assistance to buyers. Also, buyers of some HomeStep properties may be eligible for a two-year Home Protect limited warranty, which covers electrical, plumbing, air conditioning, and other major appliances and systems. Buyers may be eligible for an up to 30 percent discount on the purchase of appliances too.

Freddie Mac is trying to chip away at its high REO inventories. The GSE reported more than 65,000 REO homes at the end of the first-quarter and expects its REO inventory to continue to jump this year.

In a similar move, Fannie Mae offered an incentive program with up to 3.5 percent closing cost assistance on its HomePath properties. Initial offers on eligible properties, however, must have been submitted by April 11 and close by June 30.

Source: “Freddie Mac Offering Selling Agent Bonuses to Move REOs,” (May 16, 2011)

Read more:

Foreclosures vs. REOs: Do You Know the Difference?

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