Earlier this year, the Federal Housing Finance Agency announced a pilot program to sell real estate-owned properties to investors in bulk at auction. After months of deliberation, the agency says it has finally selected the bidders that will receive these homes.
The FHFA won't release the name of these individuals and companies until later in the third quarter, but noted that they were all approved through a stringent vetting process.
"FHFA undertook this initiative to help stabilize communities and home values in areas hard-hit by the foreclosure crisis," said FHFA acting director Edward DeMarco.
The level of interest investors showed in the 2,500 properties available through the program was very promising, DeMarco added. Specifically, the FHFA received more than 4,000 individual requests.
The homes that were available came from the extensive foreclosure inventories currently being held by Fannie Mae and Freddie Mac. Since the FHFA oversees mortgage activity at the government-sponsored enterprises, the agency could help even more investors find closing solutions to purchasing these properties in bulk in the near future.
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