In My Neighborhood in 60647>Question Details

Cookie, Home Buyer in Chicago, Logan Square,...

Federal Home Loan Mortgage Corp....what does this mean?

Asked by Cookie, Chicago, Logan Square, 60647 Mon Aug 23, 2010

Saw a posting on a vacant home in my hood, says that the property is now owned by the Federal Home Loan Mortgage Corp....what does this mean? How can I buy a property that is now owned byt he FHLMC?

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7
Just to clarify... Fannie Mae (FHLMC) was not original underwriter of all these mortgages. Commercial banks were. They were catching all sorts of junk borrowers, giving them mortgages and quickly selling them to Fannie Mae for CASH. Once the foreclosure mess started, Fannie Mae and its sister company - Freddy Mac, got stuck with millions of bad loans while the original underwriters didn't bare any consequences of their reckless lending practices. In my experience, at least in Chicago area, up to 70% of foreclosures are sold either by Fannie Mae or Freddy Mac. No wonder both are billions of dollars in the red. We, the taxpayers have been and will be for years to come, financing all that meltdown.
1 vote Thank Flag Link Mon Aug 23, 2010
I'd be happy to answer any questions you might have. You can reach me @

Ben Willig

Anchor Associates
(609) 709-9560
ben@anchornyc.com
0 votes Thank Flag Link Thu Aug 1, 2013
I know its an old post but, for future users who may stumble upon this post...

FHLMC is also known as Freddie Mac
FNMA is also known as Fannie Mae

both government sponsored enterprises, basically these companies assist in market liquidity. You can purchase homes owned by these corporations, It just means it's distressed (was foreclosed, short sale, Etc.) usually the homes are being sold to cover the cost of the loan/investment amount for the lender. Sometimes great deals and sometimes a lot of work. If you are interested in distressed properties (or any property for that matter) you should find a Real estate agent in your area. If you are in Orange County, Southern California I'd be happy to help, If you are outside my area, feel free and give me a call and I be happy to refer you to one closer to you. Good luck!!
0 votes Thank Flag Link Thu Aug 1, 2013
HI Cookie,

Hope the previous answers gave you an idea of what the FHLMC stands for. It can be confusing. Suffice it to know that it is a government backed/held loan/property that is now (or will be) on market as either an auction or REO property (real estate owned by bank).

I specialize in REO's and all distressed (foreclosures, short sales, auctions) type of properties. Which property exactly are you considering? I'll need an address. I can let you know what it's asking price is, taxes, room dimensions, lot size, etc... and walk you through the buying process. I use to live in the 60647 zip code. Are you looking in Humboldt Park or Logan Square?

I would also recommend you hire a buyers agent to assist you navigate your way through the buying process, especially REO's, short sales, auctions & foreclosures.

A buyers agent will provide you with financial and legal resources, negotiate on your behalf, provide you with market statistics to ensure you don't overpay on a property, ensure that you only pay fair market value, schedule showings of properties for you to see and so much more. A buyers agents' priority is your best interest. Best part is that it's available to you at no charge!

Interview a few agents, start with the ones that responded right here on Trulia, myself included. Once you decide who you feel most comfortable with work with that agent exclusively. Loyalty begets loyalty.

Good luck!
0 votes Thank Flag Link Tue Aug 24, 2010
Many banks have gone under and closed down over the past 3-4 years. When they do, the Fed's take over and control their bad loan inventory. That is probably what happened here. The house will come on the market with a R E Broker sooner or later......it might already be on the market. I can look it up if you want.


philip
0 votes Thank Flag Link Mon Aug 23, 2010
This home is owned by FreddieMAC, the government owned corporation that backs many of the mortgages here in the us. learn more at http://en.wikipedia.org/wiki/Freddie_Mac.
Ryan
0 votes Thank Flag Link Mon Aug 23, 2010
Government Sponsored, not owned.
Flag Thu Aug 1, 2013
Federal Home Loan Mortgage Corp., also known as Fannie Mae used to guarantee close to 70% of all home loans in the US. With so many of them in foreclosure, Fannie Mae is one of the major sellers of bank owned properties. The property that you looked up is bank-owned and is being sold according to a special procedure.
0 votes Thank Flag Link Mon Aug 23, 2010
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