subject: Are Foreclosures in Freddie Mac Suited to Your Needs? [print this page] Foreclosures in Freddie Mac are offered back to the market at a substantially bigger discount. Freddie Mac prioritizes first-time buyers and owner-occupiers when selling their distressed homes. The company is a government-backed business entity created by the U.S. Congress for the purpose of stabilizing mortgage markets as well as creating more opportunities for affordable housing.
As any other company dealing with distressed properties foreclosures in Freddie Mac are being resold to recover losses incurred through mortgage default. The company does not offer fresh loans to individuals neither does it transact directly with buyers. What the company does is purchase mortgages to replenish the funds that lenders make available for new borrowers.
The housing market offers an ideal purchasing opportunity for middle to low income people with a good credit score and a steady source of livelihood. However a lot of people are still wary of Freddie Mac foreclosures probably due to the fact that this type of foreclosure is unfamiliar to them.
What You Need to Finance Your Home Purchase
Before even starting your search for cheap foreclosure homes you first have to qualify for a home loan. While not a requirement, being pre-qualified for a home loan is a positive step towards negotiating with a seller. Apart from a stable source of income and a high credit score, borrowers who have qualified usually have proper documentation. Lenders require a show of documents confirming that the borrower indeed has the ability to pay for their loan. Some documents they will want to see are tax returns, W-2 forms, employment, assets if any and credit history.
Foreclosures in Freddie Mac are probably some of the most affordable foreclosed properties in the market today and buyers can also avail of housing assistance and grants to further bring down their costs if they are able to meet the requirements. Grants can come in the form of reduced down payment or closing costs.
Are Foreclosures in Freddie Mac Suited to Your Needs?
