By Al Yoon
NEW YORK, April 1 (Reuters) - Freddie Mac on Thursday said it would auction nearly 300 foreclosed homes in Las Vegas and Southern California this month, seizing on a federal plan that will help new borrowers with downpayments.
Freddie's plan will follow a similar effort by Fannie Mae to sell more than 85 homes at an auction in Phoenix on April 11.
Freddie Mac said buyers at its April 24-25 auctions may qualify for assistance under the federal government's Neighborhood Stabilization Program. Under the program, homebuyers may be eligible for closing costs and downpayment assistance when they buy distressed homes in designated hard-hit areas.
The auctions are timed ahead of the expiration of the first-time homebuyer $8,000 tax credit. Buyers must sign contracts by April 30 and close on the sale by June 30 to qualify for the credit.
Moving foreclosed properties is a priority for Fannie and Freddie, which were seized by the government in September 2008 and are relying on government support to help plug shortfalls caused by rising delinquencies and foreclosures.
Through auctions, Freddie Mac hopes to give individual homebuyers a greater chance of winning properties in markets where investors often have an upper hand with all-cash transactions, a spokesman said.
The inventory of homes owned through foreclosure by Freddie Mac rose 54 percent last year, to 45,047 as of Dec. 31. Fannie Mae's inventory rose 36 percent to 86,155.
(Editing by Leslie Adler) Keywords: FREDDIEMAC AUCTIONS (albert.yoon@thomsonreuters.com; +1 646-223-6347; Reuters Messaging: albert.yoon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, April 1 (Reuters) - Freddie Mac on Thursday said it would auction nearly 300 foreclosed homes in Las Vegas and Southern California this month, seizing on a federal plan that will help new borrowers with downpayments.
Freddie's plan will follow a similar effort by Fannie Mae to sell more than 85 homes at an auction in Phoenix on April 11.
Freddie Mac said buyers at its April 24-25 auctions may qualify for assistance under the federal government's Neighborhood Stabilization Program. Under the program, homebuyers may be eligible for closing costs and downpayment assistance when they buy distressed homes in designated hard-hit areas.
The auctions are timed ahead of the expiration of the first-time homebuyer $8,000 tax credit. Buyers must sign contracts by April 30 and close on the sale by June 30 to qualify for the credit.
Moving foreclosed properties is a priority for Fannie and Freddie, which were seized by the government in September 2008 and are relying on government support to help plug shortfalls caused by rising delinquencies and foreclosures.
Through auctions, Freddie Mac hopes to give individual homebuyers a greater chance of winning properties in markets where investors often have an upper hand with all-cash transactions, a spokesman said.
The inventory of homes owned through foreclosure by Freddie Mac rose 54 percent last year, to 45,047 as of Dec. 31. Fannie Mae's inventory rose 36 percent to 86,155.
(Editing by Leslie Adler) Keywords: FREDDIEMAC AUCTIONS (albert.yoon@thomsonreuters.com; +1 646-223-6347; Reuters Messaging: albert.yoon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.