Freddie Mac Foreclosures are homes that have been foreclosed upon by the government institution, Freddie Mac. Like Fannie Mae, Freddie Mac is also a government sponsored entity (GSE) that was formed to expand the secondary market for mortgages and free up the funds available to lenders so that they could extend additional mortgages. Freddie Mac was created so that Fannie Mae would have competition selling mortgage-backed securities to investors. Bottom line, what this means to real estate investors is that when Freddie Mac forecloses on a home and lists it for sale, it has the same potential to be sold at a fraction of the fair market value as any other bank owned foreclosure property.
Where is the list for Freddie Mac Foreclosures?
Buying Foreclosures From Freddie Mac. However, even though there are no Freddie Mac foreclosure homes, Freddie Mac can help you secure federal homes, government foreclosures, and even bank foreclosures. Whenever you seek financing for a real estate purchase, you enjoy lower interest rates because of Freddie Mac. The new one-click dual AUS submissions for Fannie Mae and Freddie Mac loans is just over two months old, and it is already beginning to transform the mortgage industry. Panelists at the NEXT Women.
Freddie Mac has a very nice database listing their homes for sale. Under the “Search Our Homes” tab, you can sort prospective homes by location, price, rooms, bedrooms and bathrooms. Unlike Fannie Mae, Freddie Mac does not offer a service alerting you when properties in your target neighborhood are available, but they do have a weekly update mailing that you can sign up for on the home page. You must register (it is free) and does not have a way to target your area, but you will still be notified weekly of new homes for sale.
Can a realtor access these homes for sale?
A realtor can access these homes for sale and an experienced realtor specializing in the foreclosure market will know to do this. Freddie Mac homes are represented by realtors. If you prefer to have your realtor research your investments and narrow your prospects, it is always best to locate one specializing in foreclosures. A list of realtors suggested and rated by your peers can be found HERE.
As of June 3, 2019, Freddie Mac in conjunction with Fannie Mae will offer Supers. Freddie Mac TBA-eligible Giant PCs are eligible for exchange into Supers beginning May 7 or investors can purchase newly issued Supers beginning June 3.
Product Overview
Hud Homes For Sale
Supers are single class resecuritizations of UMBS, which are 55-day TBA-eligible securities. Each Supers security will be issued and guaranteed by either Fannie Mae or Freddie Mac. Supers can be backed by:
- UMBS or other Supers (either issuances of one Enterprise or a commingling of issuances of both Enterprises) and/or
- Existing TBA–eligible MBS and/or Megas issued by Fannie Mae and/or
- Legacy TBA-eligible PCs and/or Giant PCs issued by Freddie Mac that have been exchanged and pay on a 55-day delay schedule.
Supers are pass-through securities, each representing an undivided interest in a pool of residential mortgages. Freddie Mac and Fannie Mae offer traditional 30-year fixed-rate Supers in addition to 20-year, 15-year, and 10-year securities.
Fannie Mae
Supers differ from U.S. Treasury securities and other fixed-income investments in two ways. First, they can be prepaid at any time since the underlying mortgages can be paid off by homeowners prior to a loan’s maturity. Mortgage-backed securities generally provide a higher nominal yield than certain other fixed-income products due to this implicit call option. Second, Supers are not backed by the full faith and credit of the United States, as are U.S. Treasury securities. However, Freddie Mac guarantees the timely payment of interest and principal on all Supers. Supers feature a payment delay of only 55 days from the time interest begins to accrue and the time the investor receives a payment.
Commingled Supers
Fannie Mae And Freddie Mac Homes For Sale In Plant City Fl
UMBS pass through collateral, new issue or exchanged UMBS and Supers issued by either Agency may be commingled to back Supers issued by either Agency.
Formation Guidelines:
- Dealers can form Supers on behalf of their customers using Freddie Mac’s Dealer Direct web portal.
- Please reference the 55-day Giant/Supers Collateral Prefix Eligibility Chart and 55-day Fixed-rate Giant/Supers Pooling Requirements.
- Newly formed UMBS pools are eligible for Supers the same day they are settled with the exception of the last business day of the month.
- Previously formed 55-day UMBS and Supers are eligible collateral for new 55-day Supers.
- If your Supers collateral requires a 45-day to 55-day exchange, additional time is required to allow for the exchange settlement prior to the Supers settlement. Please visit our Gold PC Exchange website for more details.
- For assistance with the execution of a Supers, please email [email protected].
Additional Resources
This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Information Statement and related supplements.