Freddie Mac will now be assisting homebuyers of REO properties with up to 3.5 percent in closing-cost assistance through their HomeSteps summer sales promotion. Agents will also benefit, receiving a $1,200 bonus for offers on eligible foreclosed properties, as long as the offer is received by July 31, and the escrow closing is completed by September 30.

HomeSteps is just one program aiming to supplement and promote sales of foreclosed homes, with the number of foreclosed properties increasing in many areas. The REO inventory is expected to continue growing in 2011, in both inventory and acquisition, because housing markets do not have the room for a high volume of REO properties, according to Freddie Mac.

Similar incentives are currently available through Fannie Mae’s HomePath program. While HomePath’s deadline for offers has passed, those who were previously deemed eligible have an escrow deadline of June 30.

Fannie Mae has reported a 39 percent increase in REO inventory since March 2010; they anticipate that inventory will not be reduced to pre-2008 levels for years.