Fannie Completes Second Bulk REO Auction of 2010

Fannie Mae recently completed a bulk auction of 212 real estate owned properties, its second such offering of the year. The GSE, whose stated goal is to sell REOs to owner occupants, would not comment on the auction but GSE sources and bidders confirmed it. Investors familiar with the matter noted that the properties were in multiple states and represented some of Fannie's most dilapidated holdings. "You might say this was the bottom of the barrel," said one West Coast-based investor. "One had a cracked foundation -- stuff like that." Investors were offered an opportunity to buy the entire package or bid on eight "sub pools." The properties, includes homes or plots in Arizona, California, Colorado, Idaho and Utah. In January Fannie sold roughly 260 REO homes to 10 different investors.