The Freddie Mac real estate sales division, HomeSteps, began its summer promotion Monday to boost sales of previously foreclosed homes, known as REO.

The government-sponsored enterprise held 65,000 REO properties at the end of the first quarter, but it sold a record 31,000 during the period, according to its financial supplement.

To push sales even higher during the usually busy real estate season, Freddie will offer up to 3.5% buyer's closing cost assistance. The offer is available for owner-occupants only.

Freddie will also grant a $1,200 bonus to agents who submit an initial offer to HomeSteps between May 16 and July 31. The escrow must close on or before Sept. 30.

Freddie will also offer a two-year limited home warranty covering electrical, plumbing, air conditioning, heating and other major systems. It can also provide a 30% discount on appliances for the new buyer.

Write to Jon Prior.

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