Housing Properties for Sale
New Jersey Rural Development has properties in its inventory (Real Estate Owned, or REO properties) that are available for sale. Visit Rural Development's new www.resales.usda.gov website to see our REO property listings or listings for upcoming foreclosure sales.
Important Information About Inventory Property Sales
General Definitions and Information
Inventory Property Deed Restrictions
Sale Schedules and Administrative Price Reductions
How We Receive and Consider Offers
Standard Sales Contract
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The sale of REO program property is restricted for Direct or Guaranteed SFH loans when a property is first offered for sale and any time an administrative price reduction is taken. Exhibit 16-1 provides the sales schedule for program property; Exhibit 16-2 provides the sales schedule for nonprogram properties. The sales price is fixed when a sales contract is executed and does not decrease further based upon scheduled price reductions.
Case files of program properties that do not sell after 7 months on the market and nonprogram properties that do not sell after 4 months on the market are referred to the State Director to determine whether additional marketing efforts or incentives are needed.
Exhibit 16-1
Sales Schedule for Single Family Housing REO Property
Program Property
| DATES | ACTION |
| Days 1-60 | Available for sale exclusively to eligible Direct or Guaranteed SFH buyers for 100 percent of market value. |
| Days 61-90 | Available for sale to anyone for 100 percent of market value. |
| Days 91-120 | Available for sale exclusively to eligible Direct or Guaranteed SFH buyers for 90 percent of market value. |
| Days 121-150 | Available for sale to anyone for 90 percent of market value. |
| Days 151-180 | Available for sale exclusively to eligible Direct or Guaranteed SFH buyers for 80 percent of market value. |
| Days 181-210 | Available for sale to anyone for 80 percent of market value. |
| Day 211 | Submit REO file with documentation of marketing efforts to State Office for further advice on sales incentives or to authorize sealed bid/auction. |
Exhibit 16-2
Sales Schedule for Nonprogram REO Property
| DATES | ACTION |
| Days 1-60 | Available for sale to anyone for 100 percent of market value. |
| Days 61-90 | Available for sale to anyone for 90 percent of market value. |
| Days 91-120 | Available for sale to anyone for 80 percent of market value. |
| Day 121 | Submit REO file with documentation of marketing efforts to State Office for further advice on sales initiatives or to authorize sealed bid/auction. |
Each offer must be date stamped when it is received. When a property is first offered for sale, all offers received during the first 4 business days after the effective date will be considered as if they were received on the same day. Any offer on a program property from other than a program applicant during the 60-day reservation period will be held and considered received on the 61st day.
For nonprogram properties and for program properties after the 60-day reservation period, offers received on the same day are considered in the following order:
- An offer from an eligible Direct or Guaranteed SFH loan-applicant with a request for credit on program terms. All program offers are evaluated as if they were submitted at the listed price, regardless of the offered price.
- An offer from a nonprofit or public body for use as transitional housing, multifamily housing, or affordable housing under Section 510 (e) of the Housing Act of 1949.
- A cash offer, from the highest to the lowest.
- A offer to purchase with nonprogram credit, from the highest to the lowest. An offer with a request for credit in excess of the market value of the property is not acceptable. If an excessive amount of credit is requested, the offeror will be given the opportunity to reduce the credit request to an amount equivalent to or lower than the market value less any required down payment. However, no change is made in the offered price.
Within categories 1 and 2, offers received on the same day will be selected for consideration by lot. Within categories 3 and 4, offers received on the same day will be selected in order of which offer will provide the Agency with the best net price. If the offers provide the same net price, they will be selected for consideration by lot. When a lot is held, names will be placed in a receptacle, drawn, and numbered sequentially. Offers drawn after the first are held as back-up and the offeror so notified.
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