Things You Need to Know About Freddie Mac Foreclosures

With the economy turning sour, it has become more difficult to reach the American dream of owning a home. Those who are starting in their mortgage payments already are finding it hard to pay on time that some even default and just give up, bringing lots of foreclosed homes in the market. If you are planning to get a property, you could take advantage of this situation, as you could get low rates by buying Freddie Mac foreclosures.

Some homebuyers turn to Freddie Mac foreclosures to buy properties at low low prices

Photo Courtesy of Mike Licht, NotionsCapital.com via Flickr

Freddie Mac Foreclosures – Who They Are and What They Do

If you’ve been scouting for a house to buy, you are probably familiar with Freddie Mac. It is the common name for the Federal Home Loan Mortgage Corporation or FHLMC. The company is well-known for buying homes that have been on default. According to their website, they do not desire to own the properties that they acquire because of delinquencies; in short, they offer really low rates just to be able to sell the property as fast as possible.

Other than acquiring and selling foreclosures, Freddie Mac also helps homeowners to keep their properties through their loan modification programs, and other financial assistance programs. Their main business actually is buying bank’s home loans, turn it into securities then sell it to the market. However, they do have useful programs that are also in favor for people who want to own their home.

Why Choose Freddie Mac Foreclosures?

There’s a ton of Freddie Mac foreclosed homes all over the country, which makes it popular to those who want to purchase a new home for their family. The price is definitely lower than what bank foreclosures offer. On top of the low prices, Freddie Mac foreclosures offer other advantages. If you are planning to buy from Freddie’s then you’ll be glad to know the benefits you can get out of it.

Really low interest rates. This is already a given, foreclosed homes from Freddie Mac is lower because they are more of the “aggressive seller” type, they do not desire to hold the properties for long and have them go to waste. Rather, they want to sell them off at low rates to be able to dispose of them and avoid the costs of holding such non performing assets.

Reduced closing rate. In most of the deals that you can find in the company, you will see that they offer the lowest closing cost. This can amount to thousands of dollars with other companies, but with Freddie Mac, they give huge discounts, which greatly help those who are coming from low-income families.

Vast options. Freddie Mac has different type of properties in their portfolio, single units; multi-unit, single family, trailer and building are just some of them. You can choose which one will work for you, based on how big your family is and how much you can afford.

Lenient financing. Unlike buying properties from the banks, you will find that Freddie Mac’s financing scheme is more lenient. They offer lower monthly payments or longer term, they will work with you depending on your financial condition. Again, this is because their main goal is to help people maintain ownership of the property.

Buyer incentives. Because they are heavily promoting their portfolio, they give out endless discounts and buyer incentives.

The Process of Buying Freddie Mac Foreclosures

If this is your first time borrowing from the company and you want to know what requirements and process you will have to undergo, you can go to HomeSteps.com, the website of Freddie Mac real estate sales unit where you can get familiar with the foreclosure property program.

To give you a general view of what’s needed, you should know that it will be like going through a loan application. You will be asked for payslips, income statements and tax returns and other pertinent documents. If you are employed upon application then you are in an advantageous position; if you are not, however, you may be asked for other documents showing that you are receiving any type of compensation from your profession or business. Don’t worry if you are in a unique situation, there are Home Steps agents who can help you so that you can start your application.

Buying a home from Freddie Mac foreclosures is like securing your future. Because of their unique business strategy, goal and vision which do not pressure or bring homeowners to more hardship, you are given an opportunity to live the American dream.

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