Freddie Mac sells foreclosed homes to the general public, but its First Look initiative gives owner-occupied borrowers priority opportunity to buy the home. Owner-occupied borrowers are those who will live in the home themselves as their primary residence. The purpose of First Look (which is currently available in only a few states) is to create neighborhood stability by reducing the number of homes sold to outside investors. In order to buy a home through First Look, you must use a licensed real estate agent to place the bid. If the bid is accepted, you have to find financing, either through Freddie Mac HomeSteps or another lender.
- When Freddie Mac forecloses on a home the home goes into a newly instituted program called HomeSteps.
- The new program ensures that the borrowers living in the foreclosed property are given the first option to buy.
- HomeSteps, which was created to create greater community stability, is so far only available in a few states.
“Freddie Mac started the program in an effort to sell the foreclosed homes to those that will live in the home themselves.”