Freddie Mac and Fannie Mae have increased the period that they are locking investors out of their listings of REOs from 15 to 20 days in most of the nation, and 30 days in Nevada in order to give owner-occupants interested in making an offer a head start over investors.
Despite the overall decline in foreclosures, the GSEs foreclosure inventories have been rising. Freddie Mac’s REO inventory rose from 44,628 to 47,120 in the past six months. As of September 30, 2013, Fannie Mae’s inventory of single-family REO properties rose to 100,941 from 96,920 in June.
The longer 20-day first look period took effect for on December 7 and is effective for properties listed on or after January 2, 2014 on HomePath, the real estate sales unit of Fannie Mae which markets a nationwide selection of Fannie Mae-owned homes.
For both REO sales units, Nevada homes will continue to be listed with a 30-day window for only prospective owner-occupant buyers.
“Freddie Mac’s expanded 20-day First Look initiative will give America’s home shoppers more time to find and buy a HomeSteps home,” said Chris Bowden, SVP of HomeSteps.
“This is especially important for buyers competing for opportunities in markets where home inventories are shrinking,” Bowden continued. “Expanding the HomeSteps First Look Initiative underscores our commitment to managing HomeSteps’ REO inventory in a way that’s good for taxpayers, homebuyers, neighborhoods, and Freddie Mac.”
The GSEs are continuing their efforts to stabilize communities. During the first-look period, HomeSteps and HomePath will only consider offers from buyers who intend to live in the home as owner-occupants or qualified nonprofits engaged in community stabilization efforts.
Some second home purchases are eligible under the GSEs’ First Look Initiative, although purchases of investment or rental properties are ineligible.