Fannie, Freddie sell bulk homes to investors

The Federal Housing Finance Agency (FHFA) announced that it chose buyers, based on winning bids, for its pilot initiative to sell homes in bulk. The real estate owned (REO) homes are controlled currently by Fannie Mae and Freddie Mac, and FHFA expects to close within the next few weeks. FHFA says it heard from a lot of interested buyers.

FHFA listed 2,490 homes for sale. Of that number, 775 homes – 45 percent – are located in Florida – 190 in Central and Northwest, 418 in Southeast Florida and 167 on the West Coast.

Atlanta had the largest parcel of homes, 572, followed by Los Angeles. Altogether, FHFA listed 1,743 single-family homes nationwide, 527 condos, 188 duplexes, 35 triplexes and 58 4-plex units. It also offered seven manufactured homes and one co-op.

“FHFA undertook this initiative to help stabilize communities and home values in areas hard-hit by the foreclosure crisis,” says Edward J. DeMarco, acting director of FHFA. “As conservator of Fannie Mae and Freddie Mac, we believe this pilot program will assist us in achieving our objectives and help to maximize the benefit to taxpayers. We are pleased with the response from the market and look forward to closing transactions in the near future.”

FHFA launched the pilot program in late February. Investors were evaluated for financial strength, asset management experience, property management expertise and experience in the geographic areas.

For more information on the investment program, visit the Federal Housing Finance Agency website.