Buy a foreclosed condo, get $1,500 for association fees

Orange condo building

One of the big, government-owned mortgage companies hopes to boost its sales of foreclosed condominiums this fall by offering buyers $1,500 toward future association payments.

The offer is from the Federal Home Loan Mortgage Corp., or Freddie Mac as it's commonly called, which buys home loans from banks and other lenders.

To get your "Condo Cash," from Freddie Mac you have to:

1. Submit your purchase offer by Nov. 15, 2011.
2. Close the sale before Dec. 30, 2011.
3. Buy a condominium you plan to live in yourself (you can’t get the cash if you’re buying to rent to someone else).
4. Choose a foreclosed condo that’s been on the market for at least 120 days.

Eligible condominiums are available through HomeSteps, Freddie Mac's real estate sales unit.

A word of caution: Your search will turn up all available homes, not just condominiums. And there's no way to tell from the online search how long the property has been on the market. You will need to contact the broker associated with the building.

Along with the cash incentive, Freddie Mac is giving most of its foreclosed home buyers a two-year limited home warranty covering electrical, plumbing, air conditioning, heating and other major systems and appliances and a 30% discount on new appliances.

HomeSteps Condo Cash is not available on condominiums purchased through auctions, sealed bids, bulk sales or in areas where local law won’t let sellers offer to pay condo fees.

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