Foreclosures Selling for 94% of Market Value

Freddie Mac Hits REO Selling Record

Freddie Mac has sold a record number of single-family REO homes in the first nine months of 2011, and the homes are selling for an average of 94 percent of market value, Tracey Mooney, Freddie Mac’s vice president of single-family servicing and real estate owned properties, said in a blog post.

“Because our homes are well maintained and priced right for the local market and home buyers, most of our homes sell close to full estimated market value,” Mooney says.

Freddie Mac sold more than 80,000 REOs in the first nine months of 2011.

“We are selling more homes than we are taking in through foreclosure,” Mooney wrote in the blog post. Mooney says Freddie’s REOs are selling in about 4 months or about 120 days, on average.

Most of the REO sales are to owner-occupants. "While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area," Mooney wrote. "In addition, we do not typically consider any offers that require significant discount pricing."

Source: “Freddie Mac Sells Record-Number REO at 94% of Market Value,” HousingWire (Nov. 14, 2011)