What is HomeSteps and where can I search for Freddie Mac properties?

Family relaxing at home on their couch.HomeSteps is a real estate sales division of Freddie Mac, a Federal Home Loan Mortgage Corporation. When a home is being sold through the HomeSteps program, this essentially means that the home has gone into foreclosure and is now placed on the market by Freddie Mac in an attempt to recover some of their losses.

Here’s a quick look at how the process works:

Once HomeSteps acquires a home, it goes through a four-step process before hitting the market.

First, the home is secure.
Second, any and all trash is removed from the interior/exterior.
Third, the lawn is maintained through weekly maintenance.
Finally, interior/exterior cleaning is initiated.

These “Good Neighbor Practices,” as the HomeSteps website says, are “intended to protect neighborhood values by requiring that our agents show clean and maintained homes and sell them at market prices.”

Other Good Neighbor Practices include hosting a toll-free customer service hotline to answer questions about HomeSteps properties and maintaining active communication with listing brokers and property maintenance vendors.

If you’re interested in browsing Freddie Mac’s HomeSteps inventory, simply visit their website to begin your search.

HomeSteps is not a home loan program but rather an outlet for Freddie Mac to market its REO properties. Buyer typically finance these properties through conventional financing programs such as conforming 30 or 15 year home loans. One of the potential perks of the buying a piece of property through the HomeSteps¬† is the allowance of up to $500 they¬† may give towards the purchase of a home warranty. Terms and conditions apply and are spelled out on the HomeSteps’ web site.

Another reason to look into HomeSteps is their Freddie Mac First Look Initiative. Under this program, home buyers and certain non-profits have the opportunity of buy HomeSteps home before real estate investors can jump into the mix. You can learn more about the First Look Initiative here.

About the Author
Nat Criss is one of the publishers of ForTheBestRate.com and BurlingtonMortgage.biz where consumers can compare interest rates from some of the leading mortgage companies in the United States.

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