Friday
April 18, 2014

Freddie Mac Offers Up Cash Incentives to Agents

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Freddie Mac Offers Up Cash Incentives to Agents

The mortgage giants are adding more incentives for real estate professionals and buyers of foreclosed homes to kick off the spring-selling season. The latest one announced: Freddie Mac is offering cash incentives to real estate agents who list or sell a foreclosed home owned by Freddie Mac’s HomeSteps sales division in 23 states. 

Buyer agents are eligible for $1,000 incentive, and listing agents a separate $500 incentive. To be eligible, all offers must be received by April 15 and transactions must close by May 30.

Freddie is also offering an incentive to buyers of the foreclosed homes. Eligible home buyers can receive $500 to put toward condominium association dues, flood insurance premiums, or a home warranty of their choosing. Only homes sold as primary or secondary residences are eligible, not investor purchases, auction sale, or bulk sale. Fannie Mae announced an offer last week to owner-occupant buyers of REO properties: It’s currently offering 3.5 percent in closing cost assistance in 27 states to buyers who close on an REO by May 31.

“HomeSteps’ 2014 winter sales promotion is focused on firing up sales in ‘cold weather’ states and condominium deals everywhere,” says Chris Bowden, HomeSteps’ senior vice president.“With mortgage rates still low and home inventories tightening, the 2014 HomeSteps Winter Sales Promotion is a great opportunity for families ready to buy and real estate agents ready to sell.”

Owner-occupants purchase about two-thirds of HomeSteps homes annually, according to Freddie Mac. Last year, HomeSteps properties sold for an average of 95 percent of their local current market value.

The Freddie Mac offer applies to the following 23 states:

  • Alabama
  • Connecticut
  • Colorado
  • Iowa
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Michigan
  • Minnesota
  • Missouri
  • North Carolina
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Utah
  • Virginia
  • Washington
  • Wisconsin

Freddie Mac has offered agent incentives in the past. Last spring, it offered an agent incentive program for foreclosed homes in 20 states.

Source: “More REO Incentives, This Time $1,500 for REALTORS®,” Mortgage News Daily (Feb. 18, 2014) and “Freddie Mac to Pay Cash Incentives to Real Estate Agents, Homebuyers,” Inman News (Feb. 18, 2014)

Read More:

Mortgage Giant Offers Closing Cost Help to REO Buyers