When a homeowner as mortgage holder of a property is unable to continue payments on that mortgage, the property has been turned back to the mortgage holder because Wells Fargo has started foreclosure proceedings or has accepted a deed-in-lieu of foreclosure. This then becomes known as a Wells Fargo Real Estate Owned property (REO).
Foreclosures are unfortunately common when the customer is unable to continue to reconcile the debt with the bank. Wells Fargo maintain their position is to work as much with their customers to stay on top of their repayment obligations in order to keep them in their homes, however occasionally foreclosure becomes the only option.
Re-energizing communities is their main goal, and their solution to that is when REO houses are bought by buyers who will live in them as their primary residence.
Should you want to buy a home and owner occupy it, there exists a special time frame reserved for buyers who will stay in that home as their primary residence. This is an amount of time available to buyers planning to live in a home to have their offers considered before buyers seeking investment property.
From Wells Fargo website:
“Preapproval or Prequalification:
- Buyers must submit a prequalification letter from Wells Fargo or any other lender. If Wells Fargo is chosen, the prequalification letter may be requested from a Home Mortgage Consultant or by going online at www.wellsfargo.com. Letters obtained from Wells Fargo are provided at no cost to the buyer.”
Properties are listed with real estate agents at fair market value, but priced in mind to sell quickly in order to regain the funds.
In the interests of preservation of a buyer’s house wanting to maintain home ownership, during the 1st fifteen days a property is listed, Wells Fargo only permits buyers wanting to owner occupy their home, and these buyers can be individuals, not-for-profit organisations, or municipalities. For up to 5 days subsequent to a reduced price for a Wells Fargo REO, only offers from owner occupants will be considered.
You can borrow money to buy REO properties through Wells Fargo or a bank or financier you decide. House inspections on foreclosed properties are sometimes needed for certain bank loans; speak with a home mortgage consultant for more details.
Some properties don’t need as much prep work in order to be conditioned for sale. But sometimes Wells Fargo will re-paint, replace carpeting, and occasionally put new appliances in the property to prepare the sale.
