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When the GSEs began to acquire a large inventory of REO
properties as a result of the foreclosure crisis, they looked for new
ways to quickly dispose of those properties, and one such method
was the bulk sale. Fannie Mae and Freddie Mac began selling
packages of REOs to investors and nonprofits in 2012. After
relieving some of their inventory, the GSEs have largely abandoned their bulk sales
of REO properties—though they do still engage in bulk sales of nonperforming
loans. In place of bulk sales, the GSEs have been picking up activity with another
platform: the online real estate auction.
THE END OF THE LINE FOR BULK SALES
Freddie Mac announced on its website
that effective October 27, 2015, HomeSteps
was discontinuing its InvestorSelect Bulk Sale
program. However, the announcement did state,
"Buyers are still encouraged to register as one of
our Bulk Investors as we anticipate offering bulk
sale opportunities for investors in the future."
e announcement went on to direct
interested investors to four auction companies
HomeSteps uses to sell "select portions of our
inventory." ose companies include Auction.com,
I N D U S T R Y I N S I G H T / K R I S T A F R A N K S B R O C K
With REO inventory down,
bulk sales at the GSEs have
reached the end of their line,
and the agencies are shifting
over to the far-reaching tracks
of the online auction.
