Freddie Mac Notes Auction Success In California, Vegas

Posted by Orb Staff on April 29, 2010 No Comments
Categories : Mortgage Servicing

Freddie Mac reports that it sold 207 HomeSteps real estate owned (REO) homes to first-time buyers and other owner-occupants at morning and afternoon auctions in Las Vegas and Riverside/San Bernardino counties on April 24 and 25. HomeSteps is the real estate sales unit of Freddie Mac and markets a nationwide selection of Freddie Mac REOs.

‘The response was very encouraging. In one weekend we put 207 new families on the road to sustainable homeownership in Las Vegas and the Inland Empire,’ says Ingrid Beckles, senior vice president of default asset management at Freddie Mac. ‘The bidding was intense in both markets, California homebuyers filled the Riverside Convention Center to capacity, and we sold virtually all of the homes we had set aside for these auctions.’

Morning auctions were held for borrowers eligible for the federal Neighborhood Stabilization Program (NSP), and afternoon auctions were for the general public interested in buying a home as their principal residence. The NSP provides counseling and financial assistance to encourage eligible first-time home buyers and other owner-occupants to buy foreclosed homes in designated areas hard hit by the housing downturn.

Freddie Mac sold 90% of the HomeSteps properties set aside for the auctions, including 49 of the 50 homes in areas targeted under the NSP. HomeSteps successfully auctioned 107 homes in Las Vegas, including 36 homes to NSP-eligible bidders, and 100 homes in Riverside/San Bernardino, including 13 under the NSP.

As an added incentive to bidders at the morning NSP auctions, HomeSteps offered to pay up to 3.5% of the closing costs.

The auctions were managed by New Vista and the Real Estate Disposition Co. (REDC).

‘The auctions we held with New Vista and REDC show that the NSP can be a valuable tool for stabilizing communities by fostering real homeownership opportunities,’ adds Chris Bowden, vice president of HomeSteps. ‘Our next step is to use what we have learned to build upon our commitment to sell REO properties in a way that promotes sustainable communities and successful homeownership.’

SOURCE: Freddie Mac

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