Ever since the “Katy Sun” did an interview with me, and it was picked up by the “Houston Business Journal”, on foreclosures and short sales, my phone has been ringing with investors wanting to buy properties. One thing I have to do, in most occasions, is explain the Freddie Mac First Look Initiative:
Freddie Mac offers homebuyers and select non-profits an exclusive opportunity to purchase HomeSteps homes prior to competition from investors through the Freddie Mac First Look Initiative program. This on-going initiative offers owner occupant homebuyers, Neighborhood Stabilization (NSP) grantees and non-profits engaged in community stabilization efforts the ability to purchase HomeSteps homes during their initial 15 days of listing without competition from investors.
The initiative supports Freddie Mac’s mission to stabilize communities and support housing recovery through the creation of affordable home-ownership opportunities.
How does the initiative work? During the first 15 days a home is listed for sale in the Multiple Listing Service (MLS), HomeSteps will consider purchase offers from owner-occupants, public entities or their designated partners only. Buyers intending to purchase the property for investment, may submit offers to the listing broker and HomeSteps will consider them after the initial 15 listing days have expired; this assumes the house hasn’t sold. Many sell during the first 15 days.
What homes are eligible to be included in the Freddie Mac First Look Initiative? All HomeSteps homes listed on or after September 17, 2010, are eligible for inclusion in the program.
How will a homebuyer know if a home is included in the program? Buyers may contact their selling agent or the listing broker with questions about the eligibility of a home; this information will also be included in MLS listing information.
How can a homebuyer determine the number of days the home has left under the initiative? Buyers must have their broker check MLS or contact the listing broker to determine how many days are left.
How will a buyer prove that they are buying the home as their primary residence? The buyer and their selling agent must sign an affidavit affirming that the buyer will occupy the home as their primary residence. Parties that fraudulently sign the affidavit may be subject to criminal or civil liability.
Important Notes: Multiple offers received during the 15-day initiative time period are processed in the same manner as a normal transaction using the multiple offers procedure. Second home purchasers do not qualify for the Freddie Mac First Look Initiative; they are subject to the rules for investors.
To participate in the Freddie Mac First Look Initiative as a homebuyer or to submit offers as an investor, contact me at [email protected] or on my mobile phone, 713-818-2404.