Freddie Mac is gradually reducing its REO inventory by selling properties faster than its mortgage servicers can complete foreclosures.
The secondary market giant owned roughly 60,500 foreclosed homes at the end of 2011. By June it had reduced its REO inventory to 53,300 units, according to new figures released by the firm.
During the first six months of 2012 Freddie took in 43,840 properties and sold 51,100.
Freddie does most its sales on a retail basis through its HomeSteps subsidiary which markets REO though a network of licensed real estate brokers.
“About two-thirds of our sales are made to owner-occupants and the rest to investors,” said Freddie spokesman Brad German. “We have done some bulk sales, but on a very limited basis,” he added.
The mortgage giant said it expects “REO activity to remain at elevated levels” due to a large inventory of seriously delinquent single-family loans.
Meanwhile, Freddie had 386,750 loans as of June 30 that were 90 days or more past due.
