Freddie Mac offers First Look program

The government-sponsored mortgage insurer Freddie Mac has begun offering a First Look homebuyer program that will give moving families a leg up on property investors.

Similar to programs adopted by Fannie Mae and the Department of Housing and Urban Development, Freddie Mac's First Look program will market distressed and bank repossessed properties to ordinary homebuyers before investors, giving relocating families 15 days to purchase the discounted property without competition. Investors, second home and vacation home purchasers will be unable to bid on the property until it's been on the market at least 15 days.

The program will be offered through Freddie Mac's real estate sales arm, HomeSteps. That division's vice president, Chris Bowden, said the program is designed to put moving families into the homes on a permanent basis, rather than allowing discounted properties go into the hands of investors who might only want to re-sell it for a profit later. "Expanding the Freddie Mac First Look Initiative emphasizes Freddie Mac's commitment to manage its REO inventory to help stabilize communities, foster affordable homeownership opportunities and responsibly safeguard tax dollars."

Fannie Mae first made its similar First Look program available last November, while HUD announced its variation earlier this month. Each program is designed to help infuse blighted communities with revived moving activity.

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