Fannie Mae recently completed an auction of 260 repossessed homes with 10 different investors agreeing to buy the properties, sources close to the auction said.

"This was the worst of the worst," said one investor, requesting anonymity. No price was disclosed.

The government-sponsored enterprise is also said to be contemplating a larger bulk sale of real estate owned in coming months.

A Fannie spokeswoman would not discuss the auction (which National Mortgage News first reported on last fall) but stressed that the GSE prefers to sell its REOs to owner-occupants, not investors.

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