Freddie Mac said Monday it is trying to move its inventory of repossessed residences by offering to pay closing costs and to purchase home warranties for buyers.

Seized properties have become an albatross for Freddie as mortgage defaults climb and house prices tank. The government-sponsored enterprise's inventory surged 58% from a year earlier, to 29,151 residences (most of them single-family) at the end of the first quarter — even as dispositions accelerated 140%, to 14,184 homes, according to Freddie's first-quarter filing with the Securities and Exchange Commission.

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