The Obama Administration, sent out a request for information
asking for ideas that would help Freddie Mac, Fannie Mae & HUD shed its
inventory of foreclosure homes. Pools
of investors approached Freddie Mac to purchase blocks of inventory homes @ 40
to 60 cents on the dollar. Freddie Mac,
however, is not considering any such discount pricing for these investors.
There are two sides to the argument. Having investors purchase the volume of foreclosures
in bulk transactions purges the inventory from the GSE which is a good thing. However the investors are wanting it a deep
discount, 40 to 60 cents on the dollar.
If a geographic area has a significant number of foreclosures that are
purchased in bulk, it can further erode the value of all the homes in the area.
Freddie Mac, Fannie Mae & HUD position is to continue to
focus on owner occupancy of its foreclosure inventory.
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