Fannie Mae and Freddie Mac have resumed sales of foreclosed properties that were placed on hold in late September due to questions about improper affidavits used in the foreclosure process.
"Following a review of its REO acquisitions, and in consultation with its regulator, the company is resuming the scheduling and closings of sales of vacant REO properties," said Fannie spokeswoman Janis Smith.
Freddie notified its listing brokers on Nov. 24 that they can resume marketing and sales of REO properties previously placed "on hold" due to the foreclosure review process.
Freddie 'HomeSteps' brokers sold 26,300 REO properties in the third quarter, up 47% from a year ago. Freddie held 74,900 REO units as of September 30, according to the GSE's third quarter financial report.
Fannie 'HomePath' brokers sold 48,000 single-family REO properties in the third quarter. The GSE had nearly 166,800 REO on its books as of September 30.
Fannie said its decision to resume REO sales was motivated by several factors including the availability of title insurance to protect buyers.
The GSE also considered the "negative impact lingering foreclosed properties has on neighborhoods and the cost burden that is placed on taxpayers when REO sales are suspended," Smith said.
