Freddie Mac First Look

[Kris Rasmussen]

Hey everyone,

Quick question on Freddie Mac First Look initiative properties.  How serious are they about not allowing investor offers during the first look time?  How is it policed and what are the ramifications of an investor saying they are buying to occupy and then turning around and flipping it?

The reason I ask is I was recently looking at a FMFL property here in NJ and while I was bringing my contractor through to estimate rehab costs he asked the same questions.  The property now has an offer on it (presumably by a owner/occupier) however I am curious if I should handle this differently on future opportunities.

Thanks for the help,

Kris

[Kevin Hill]

Hey Kris, the Freddie Mac site says you have to sign an Agreement of Purchaser affidavit affirming that the buyer will occupy the home as their residence. Parties that fraudulently sign the affidavit may be subject to criminal or civil liability. 

http://www.homesteps.com/homesteps/homebuyer/firstlook.html