"What is the Homesteps Home Program?" you ask. Most people associated with or involved in the real estate business, either the lending area or the sale of foreclosed properties, are familiar with Freddie Mac, one of the major players in the Secondary Mortgage Market. Homesteps homes are properties that have gone through a foreclosure process or "take back" by Freddie Mac. There are five steps involved in the process to buy a Homesteps Home; the five steps are taken from Freddie's guidelines.
1. Typical with the real estate purchasing procedure, it all begins with an offer. The offer is made in writing on a local or state contract and is signed by the buyer. The seller should be identified as "Federal Home Loan Mortgage Corporation."
2. Common to many offers in buying real property, contingencies are often included in the offer and submitted on addenda. The Homesteps process involves addenda and include the following: (i) the single-family Real Estate Disposition, (ii) the Lead-based Paint Disclosure addendum, (iii) Property Condition addendum and release, (iv) State Riders or disclosures and addenda (if applicable), (v) Manufactured Home addendum (if applicable). The listing agent generally has or will get and provide the applicable addenda and make them part of the contract; no changes are allowed to the printed text of the addenda.
3. It is very common today that a buyer be pre-qualified when starting the buying process; this is true with the Homesteps experience. A buyer must submit a pre-qualification letter with the purchase contract and addenda to the listing broker. The listing broker must have all required documentation prior to presenting the offer to Homesteps.
4. It is customary in the real estate practice that contracts be in writing; this usually includes applicable addenda. However, in the process of working with a Homesteps purchase, it is common that negations occur verbally until final agreement is reached; then it is confirmed in writing.
5. Homesteps requires that final terms be submitted "on a clean, typed contract with buyer's original signatures and initials on the form and all required addenda. Return the executed contract and any additional deposit monies to the listing broker no later than three (3) business days from the verbal acceptance by Homesteps. If the contract is not returned timely, Homesteps may withdraw its verbal acceptance to sell the home at the agreed-upon terms."
While these guidelines are specific to this one program, they provide the essential points that must be followed in order to work with Freddie Mac in the Homesteps Home buying process. This column will provide more of this type of information about other programs in the future.

St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS), Seniors Real Estate Specialist (SRES), Certified International Property Specialist (CIPS), GREEN Property Specialist, and Certified Short Sale and Foreclosure Resource Specialist (SFR). You can contact him by e-mail at Jim@JimColeman4Homes.com. Call: (435) 627-5411; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.WinningTalk.com/articles.