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Freddie Mac is offering free home warranty

Freddie Mac has started offering free home warranty coverage for 2 years when you buy bank owned or foreclosed real estate property. The “Smart Buy” program was started in late August and is expected end at the end of October.

free home warranty

The promotional program applies to real estate owned homes sold through the agency’s HomeSteps unit, which deals with foreclosed properties that have been turned over to the lender. Called SmartBuy, the program seeks to address one of the major concerns homebuyers have about buying foreclosed property, namely, the potential cost of repairs on a home that may have been poorly maintained or allowed to deteriorate.

 

A typical home owner’s warranty costs anywhere from 300 to 600 dollars and will have a deductible per incident. There are several companies (AHS home warranty, Old republic home warranty, First American home warranty etc.) that offer home protection plans.

Freddie Mac will also pay closing costs of up to 3.5 percent of the purchase price. For example, on a $200,000 home, the program would pay up to $7,000 in closing costs, however it does not cover down payment.

Freddie Mac plays a critical role in the mortgage industry. Serving as one of the nations largest agencies that securitises conventional home loans, they have been in a precarious financial position over the last two years as home foreclosures have swept over the housing markets. Freddie Mac, along with Fannie Mae, another large national agency covering the mortgage markets, have both received billions of dollars of capital from the U.S. government in the last twenty four months. The companies financial problems escalated as they were leveraging the value of their loan portfolios in multiples over ten percent

Second and vacation homes, investment properties or property purchased solely for rental purposes are not eligible. There is a minimum purchase price of $25,000. More information on the program, including localized listings of eligible HomeSteps properties, are available through www.homesteps.com web site. Local real estate agents can also provide information on which properties are offered through the program.

As an advice, if you are buying a home make sure you hire a professional home inspector. They will inspect appliances, backyards, plumbing, electricity etc. to make sure everything is in good and working condition.

 


Recent Comments
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Lisa Smith
31-03-2014
What a scam! Don't even bother with trying to make a claim. You'll be out $100 and still have to pay for the repair or buy a new appliance. Freddie Mac paid $1,500 for a "home warranty" for us. We've had 2 appliances go out and had to pay for everything ourselves. Those Home Warranty programs should be illegal and shut down!
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Tawana
20-11-2012
Cross Country Home Services, Inc / HOME PROTECT Mr.Rooter took apart my toilet and left my family with a working toilet.. If he was not able to do the job he should have not touch my toilet at all... Very untrustworthy people and I want a refund of my $100.00 it will cost me $480.00 to get someone out here to fixes his bad workmanship.Because millions of dollars to a company who is not trustworthy and its not fair to family who get misused by companies like this Not fair to the taxes payer etc. Stand be-hide your Home Warranty.. Stop lies to keep for paying for the work which is coverage by the home warranty No way in hell in do business with a company who don't stand be-hind there warranty
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Alexandra
01-08-2012
forgot to add, that at least we got our $1oo deductible back, after writing the county and their corporate headquarters! : ) Score one for the little people!
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Alexandra
01-08-2012
We Purchased a FREDDIE MAC house, With a 2 YEAR HOME WARRANTY FROM HOME PROTECT... We just moved into our new home in May, and guess what the air conditioner doesn't work, the inspector and even the appraiser listed the home in great condition, with no repairs needed. Called home protect and Paid the $100 deductible fee, only to find their guy said, our unit was improperly installed so the home warranty will not cover it. How can they offer coverage of a house and not uphold the "coverage" that we were sold on? It's over 103 degrees at times and our health and our children's health is at stake here~ Distressed! Talked to some people and they have suggested going to small claims and suing the Inspector and the appraiser for the cost of the unit, of course first we need to pay to have it fixed, which won't be fast or easy for us, then we can get financial redress. *Open to any ideas
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CANADIAN-JAY
19-07-2012
STAY AWAY from this crap. It's a trap. You have to pay $100.00 for someone to come and say that an specific item it isn't covered. A total ripoff. Useless, worthless.
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Sunil DSouza
21-06-2012
I would be very careful in dealing with these guys. It's the middle of June and it's 90 degrees in Chicago. My Air Conditioner stopped working Monday evening. I called them Tuesday morning and they said the contractor would be out between 12-4 PM. He didn't show up until 7 PM. When he got there he told me I needed a new motor but he couldn't call it in until Wedesday morning (since he was late past his window). However, he said they would likely next day deliver the parts. When I called him Thursday, he said they still hadn't processed the claim. What's not to process? It's June and 90 degrees in Chicago! There's nothing to dispute! When I called them, they said that they don't send out parts next day delivery even in cases of emergencies and even in I'm willing to pay the next day delivery charge. It's still Thursday and I'm might not get this taken care of until next week! Be VERY CAREFUL when using these guys. They are HORRIBLE!
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Ralph
03-05-2012
Purchcased a home with a "Home Protect" Warranty. A month later they AC didn't cool and Home Protect refused to cover it stating that we should have gotten a "Home Inspection" and it would have said that the AC was old and probably wouldn't keep working. We forked out $100 to some company that does their warranty work for nothing. This appears to be a genuine scam. Wouldn't have bought the house without the warranty si feel like we got really taken!
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Zona McSpadden
02-05-2012
I am a real estate agent and represented my son in the purchase of his home. The home was a forclosure and the Freddie Mac was paying for a 2 year home warrenty to cover systems in this home. The offer of a home warrenty was a blessing due to the fact the systems were in working order but other than that would not be able to obtain any further information on them. Well needless to say 4 days after moving in the furnace stopped working and also the central air unit failed to come on as it did when the home inspector tried them. First step of recourse follow guidelines and report this to Home Protect the Home Warrenty that was provided to my son. Not! A technician was sent out he took picture oped the furnace up looked at the coil to the central air and said it was an electrical problem and he would be getting back to us in no longer than 24 hours. Well the warrenty rep called my son and said nothing is going to be covered due to Improper Instulation and the furnace had a line leaking inside that caused the electric to be shorted out. What? Isn't that what you buy a home warrenty on working components so then there is a problem it will be covered? So now nothing is going to be covered and not only does Home Protect have 1078.00 from the bank but $50.00 from my son. What can stop this company for always finding a loop hole to not pay for repairs? I would like to hear from other buyers who feel dooped my son had to sign a paper that authorized the home warrenty and the paper stated This home does qualify for home protection coverage I think this is like that Home Fidelis Auto warrenty where every time a claim was submitted it was denied. I smell class action suit any takers? Dooped in Missouri
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Nancy
23-03-2012
I had the use Home Protect 3 weeks after I bought my home. Freddie Mac gave me a free 2 year home warrany when I purchased my home. My own refridgerator was not cooling. They sent out a service tech who said it was the computer board. He said he would order one. He called back because LG said he wasn't authorized to order from them. I called the company back and they orderd one and told me call the tech to come back when it came in. When it came in the service tech would not answer my calls or return my calls. I called and had another company to come out and put it in. That turned out not to be the problem. I called and had the that tech to come back out and check it out and he found a very minor freon leak. He tried to order a part and wasnt authorized to order from LG either. I called Home Protect back and they ended up doing the ordering the part which took about a week to come in. The had another technician come out. Finally got it fixed. I had no problems with Home Protect customer service , they were very nice and helpful throughout the process.I paid the 1st service tech $100 deductable for nothing. I had to pay the 2nd one out of my pocket. Home Protect reimbursed me the money. The whole process ended up being a part that was still warranted under LG. Home protect did all the communication with LG to settle the issue with the repair. I am happy about getting it fixed, but it took 6 weeks all together and I lost all my food in the fridge which was not covered under the warranty.
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Jessica
15-02-2012
Home Protect came with the foreclosed home we bought two years ago. In those two years they sent someone to fix the toilet and the dishwasher two times. Not a single one of the 3 calls were covered by the warranty. One each call I paid the deductible and then had to pay for it to be repaired. It does seem like a scam, doesn't it. They tried to get me to sign up for another year. No thank you! I am looking for a legit home warranty.
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