Freddie Mac, the government-backed lending giant, will reportedly pay cash incentives to home buyers and real estate agents in 23 target states, who sell or list a foreclosed home owned by the firm. The incentive will be given once the home sells, according to several news reports.

The offer comes as a winter sales promotional activity and is applicable on all homes sold through Freddie Mac's property sales division, HomeSteps, between Feb. 18 and April 15. While the listing agent of the home will receive $500, buyers' agents will receive $1,000, according to Inman News.

Home buyers will also receive a $500 cash incentive for buying a property from HomeSteps. Buyers can facilitate condominium association dues, flood insurance premiums or their home warranty with the incentive.

The promotion, however, does not apply to auctions, bulk sales, sealed bid sales and investor purchases.

"HomeSteps' 2014 winter sales promotion is focused on firing up sales in 'cold weather' states and condominium deals everywhere. With mortgage rates still low and home inventories tightening, the 2014 HomeSteps Winter Sales Promotion is a great opportunity for families ready to buy and real estate agents ready to sell," Chris Bowden, Senior Vice President, HomeSteps said in a statement.

Certain terms and conditions apply on the offer for both realtors and buyers, and can be seen here.

The offer is valid in Alabama, Connecticut, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington and Wisconsin.

The lending giant hopes to take advantage of the low interest rates prevailing in the market. As of Feb. 13, the 30-year fixed mortgage rate was 4.28 percent and the 15-year fixed mortgage rate 3.33 percent.

Freddie Mac's housing outlook for February predicts that rising home prices and low income growth could bring down affordability. Check out a map here to see how your city ranks.