Freddie Mac will auction off 135 homes in Phoenix, Arizona in the coming weeks, but in a very unusual way: The auction will be tailored to individual homebuyers, and nearly a third of the homes up for auction will be set aside for first-time borrowers participating in the federally-sponsored Neighborhood Stabilization Program (NSP)[1]. Normally, auctions are open to the highest bidder.
Freddie Mac has already held similar auctions in Las Vegas and Riverside/San Bernardino. These auctions also catered largely to first-time homebuyers, NSP participants and owner-occupants. It is unclear if and how investors will be permitted to participate at this time.
Have you participated in this type of auction yet? Do you plan to try?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.dsnews.com/articles/freddie-mac-to-hold-reo-auction-in-phoenix-2010-07-16
This strategy coupled with the pending ‘license to sell your home legislation’ in congress turns my stomach. The only way any sanity is going to come to our economy is to get rid of just about every Representative, Senator and the currend resident of the Oval Office.
No, the prices are always over valued and the selling price is always over what it should be. Better to wait and pick up those that do not close which tends to be a number of them.
AS A SEASONED INVESTOR I HAVE NOTICED THESE LAST FEW YEARS THAT THE GOVERMENT & BANKS HAVE MADE INVESTORS TO BE THE BAD GUYS. ALL THSES NEW RULES & REGULATIONS ARE MAKING A MOCKERY OF OUR CAPITALISTIC SOCIETY. REGULATING CONTRACT FOR DEEDS,LEASE OPTIONS,OWNER FINANCING, FLIPPING,ETC
ENTREPRENEURSHIP IS BEING PUNISHED INSTEAD OF REWARDED, REMEMBER THIS WAS WHAT MADE OUR COUNTRY GREAT !!
I just ran into a 15 day wait on a tri-plex. This kind of stupidity will start backing up the system even more. There are already a gazillion programs to help first time buyers at taxpayer expense.
It would probably be cheaper to have the government just buy all foreclosures and give them away to anyone, than to set up more and more continuing government organizations employing more idiots coming up with these ideas to promote themselves.
It seems that every Government, or Government backed, agency is trying to come up with various methods and schemes to stop people from making any money. As investors, we are evil people. That is the attitude of the Administration and of many current members of Congress as well as that of assorted staffers and bureaucrats. We are trying to make money and use our own initiative to do so, but that is evil in the eyes of the Socialists we now have in Washington.
It’s very simple actually: The Real Estate and Mortgage and Banking industries are in the top 3 or 4 largest lobbyists in the country. They
pay millions of dollars a year in Congressional “donations” in order to gain an advantage when going about their everyday business. By having this much power over our Congressional Members they can virtually guarantee that the laws will be bent, skewered, shredded, stomped upon, spat upon and just outright broken day in and day out by these organizations with impunity. And furthermore the buck will always get passed on to the least suspecting of all: Home buyers, sellers and investors. WE MUST IMPEACH THE LOT of ‘em.
This is nothing new. To buy a HUD home you always (for at several years) had to wait 15 or 30 days for an owner occupant to get first shot at it. This will have absolutely no effect on any real estate investors business.
The Governments total misunderstanding of the problems and culprits is laughable. They go after investors and prohibit them from participating when they are the buyers who will and can stabilize the market. Total ineptness on the part of our leaders.
David is right. This will have absolutely no effect. This blog seems to be a neverending whine-fest for Republican sore losers.
After 8 years of the reign of the morons when the inbred commander-in-thief allowed ‘investors’ on wall street to decimate our economy it is about time that govt take its proper role and protect the interests of its people.
We the people ARE the govt. Govt should work for us, not allow privately owned entities to rape us and bleed us dry.
All your misplaced anger against this fine President is based in your hatred of the idea that non-whites are becoming the majority. Its very obvious. You teabaggers dont have the credibility to bring a takeover of the congress. Midterm elections have always brought a gain in seats for the party out of power but you dont have the momentum to get a majority. Because America knows it is your failed ideology that brought us this Bush depression.
Whiny incompetent white males unite!!!
This is so unfortunate… racists see race problems where they don’t exist. I publish Jay’s comments, not because they are particularly helpful and certainly not because they have accurate information, but because it will likely help some of you to see that the same people who use phrases like “teabaggers”, “reign of morons” and “inbred commander-in-chief” are the same people who make simple-minded allegations of racism where it clearly doesn’t exist. This particular commenter has a long history of irrational vitriol – hopefully it helps some of you to see it. — Bryan Ellis