Freddie Mac Foreclosures are homes that have been foreclosed upon by the government institution, Freddie Mac. Like Fannie Mae, Freddie Mac is also a government sponsored entity (GSE) that was formed to expand the secondary market for mortgages and free up the funds available to lenders so that they could extend additional mortgages. Freddie Mac was created so that Fannie Mae would have competition selling mortgage-backed securities to investors. Bottom line, what this means to real estate investors is that when Freddie Mac forecloses on a home and lists it for sale, it has the same potential to be sold at a fraction of the fair market value as any other bank owned foreclosure property.
Where is the list for Freddie Mac Foreclosures?
Freddie Mac has a very nice database listing their homes for sale. Under the “Search Our Homes” tab, you can sort prospective homes by location, price, rooms, bedrooms and bathrooms. Unlike Fannie Mae, Freddie Mac does not offer a service alerting you when properties in your target neighborhood are available, but they do have a weekly update mailing that you can sign up for on the home page. You must register (it is free) and does not have a way to target your area, but you will still be notified weekly of new homes for sale.
Can a realtor access these homes for sale?
A realtor can access these homes for sale and an experienced realtor specializing in the foreclosure market will know to do this. Freddie Mac homes are represented by realtors. If you prefer to have your realtor research your investments and narrow your prospects, it is always best to locate one specializing in foreclosures. A list of realtors suggested and rated by your peers can be found HERE.