Freddie Mac Foreclosures

From LoveToKnow Mortgage

Freddie Mac foreclosures are managed by the lender who services the mortgage. It is important to know when to contact the original lender on the property and when to contact Freddie Mac directly.

Freddie Mac has foreclosures for sale.

Freddie Mac Is Not A Lender

Freddie Mac does not make mortgage loans. The primary purpose of Freddie Mac is to keep funds available for lenders to make affordable mortgage loans. Their slogan is "We make home possible." Freddie Mac was chartered by the United States Congress in 1970 to purchase mortgage loans from mortgage lenders. The funds received by the lenders are then used to fund new mortgage loans, particularly for low to mid-income families.

Like Fannie Mae, Freddie Mac sets minimum requirements for the loans that they are willing to purchase. The requirements include the percentage of the home's market value that can be loaned and the minimum down payment. Mortgage lenders are not mandated to follow these requirements, but most lenders do choose to follow the requirements to allow the mortgage to be purchased by Fannie Mae or Freddie Mac.

Foreclosure Education

According to Freddie Mac, the organization purchases "one mortgage loan every seven seconds to help finance one in six American homes." Homeowners continue to pay their mortgage payments through the original lender or a mortgage servicer. If the homeowner falls behind in his or her mortgage payment Freddie Mac will direct the original lender or the servicer to initiate foreclosure on the property.

Freddie Mac encourages homeowners to contact their lender as soon as they start having problems paying their mortgage. To support the education needs of the homeowner, Freddie Mac provides:

Buying Freddie Mac Foreclosures

You can purchase a Freddie Mac property that has gone into foreclosure. The Freddie Mac HomeSteps website provides a searchable database of thousands of homes for sale by Freddie Mac throughout the United States. Once you enter your criteria, the database will continue to search for your requirements and provide you with an e-mail update when homes are identified that meet your requirements. You can search by:

  • City
  • State
  • Price range
  • Number of bedrooms
  • Number of bathrooms

HomeSteps can also help you find a real estate agent in your community knowledgeable about the Freddie Mac homes available - or soon to be available - in your chosen community. These agents have paid a fee to HomeSteps to be part of the Selling Agent Select program. They receive lists of homes for sale as well as home auctions and referrals to people like you who have searched the HomeSteps database for available homes.

Loans to Purchase Foreclosures

Once you have identified a Freddie Mac foreclosure to purchase you need to contact a lender to obtain your mortgage loan. The loan criteria will be established by the lender and will be consistent with Freddie Mac requirements. For a quick look at the amount you may qualify for, HomeSteps provides an online mortgage calculator.

Take Action

If your home mortgage was sold to Freddie Mac and you are having problems making your mortgage payment, immediately call the customer service number on your mortgage statement. Don't wait until you have missed a payment or two or until you are notified of foreclosure. Based on the laws in the state in which the home is located, a loan that is only 90 days delinquent could be put into the foreclosure process. Working with your mortgage loan servicer might delay or avoid foreclosure.

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