What is an REO property?
REO stands for Real Estate Owned and means the property is owned by a bank institution or the FDIC (Federal Deposit Insurance Corporation).
How do I purchase an REO property?
The process will be different for each institution. The process through the FDIC and New Home Team is fairly streamlined. All buyers can put in an offer through either their agent with the New Home Team or the buyer can work with the New Home Team directly to place their offer with the FDIC. You will be required to provide a pre-qualification letter from your lender and sign a Proof of Eligibility to Purchase form, which is provided by the New Home Team.
If I am an agent, how do I proceed for my buyers?
Contact the REO Manager for the New Home Team to assist you with the FDIC purchase and sale contract and the offer process. You can request forms by emailing NHT.REO@Live.com and including the address or lot and community of the home with "Offer Forms" in the subject line. The REO manager will return the forms by email with directions of how the procedure takes place. The FDIC will NOT except NWMLS forms of any kind.
How long does the process take?
FDIC properties listed with the New Home Team close just as a normal real estate transactions would with a private seller. 30 - 45 days is the normal closing time. Remember, these homes are NOT short sales and there is NOT an approval process that needs to take place.
How are the prices determined?
The homes are owned by the Federal Government and at the listing price determined by the FDIC through property appraisals. Any property the New Home Team has listed that states "Price is subject to bank approval" means the FDIC's appraisal has not been completed on that home yet, but the pricing will be very close to the listing price once the final appraisal is complete. Most of the appraisals have been completed. We are removing the comment "Price is subject to bank approval" as the final pricing comes in.
Do the homes come with a Home Warranty?
The FDIC sells the homes As-Is, Where-Is. There is no Home Warranty provided. The buyer or buyer's agent can look into purchasing a 1-Year Home Warranty through a warranty company on their own.
Can I have the property inspected?
Absolutely! You have the right to a Home Inspection so you can determine if the home is sound and whether any repairs that may be required are feasible for you to correct. The FDIC will not repair of fix anything on the property that is noted on the inspection report.
Will the FDIC repair, complete or fix anything at the home I want to purchase?
ALL of the properties listed with the FDIC are sold As-Is, Where-Is. This means the property is being sold in its present condition where it is. No repairs whatsoever. For any home that is NOT completed, you will need to contact a mortgage company and apply for a 203 Rehab Loan.
Can I just go to the FDIC directly?
The FDIC or Bank contracts with an agent or REO team to represent them just as a private seller does for a property. You must contact the "Listing Agent" for the property. In regards to all of the New Home Team listings with the FDIC, you would contact the REO Department at the New Home Team for assistance with offers. Contact the REO Department at the New Home Team by calling 425-347-1254 or emailing NHT.REO@Live.com.
How do I get more information about the New Home Team's REO properties?
Contact the REO Department at the New Home Team by calling 425-347-1254 or emailing NHT.REO@Live.com. All of our FDIC properties are featured on our website. See the links below to view community maps, floorplans, pictures of the properties, and feature details.
Ashton Place in Snohomish
Alpine Ridge in Marysville
Roslyn Ridge in Lynnwood
Vermont on Juanita Drive in Kenmore
Woodside Terrace in Edmonds
12406 Maplewood Ave in Edmonds