When you are in the market for a home, one option to consider is to buy a real estate-owned home from Wells Fargo.
When you are in the market for a home, one option to consider is to buy a real estate-owned home from Wells Fargo. This bank may also provide you with financing for a foreclosed home.
A real-estate-owned (REO) property is home that was foreclosed or turned back to the bank or lender through a Deed-in-Lieu of foreclosure. Government agencies such as the U.S. Department of Housing and Urban Development (HUD) are also selling REO properties.
You may believe that foreclosed homes always sell at a discount, but property owners want to sell them for as close to market value as possible. Wells Fargo works with local realtors to get a fair market value for the homes. Another common myth is that foreclosed homes must be purchased with cash, however an average of 60 percent of Wells Fargo foreclosed homes purchased are financed.
It is important to consider why you want to buy a real estate-owned home from Wells Fargo. Your reason for purchase will help you to think through additional purchase considerations. It is also a good idea for you to think about the features that you want in your new home as well as whether you would like to purchase a move-in ready home or if you are willing to make repairs. If you are willing to make repairs, Wells Fargo offers a loan that combines the mortgage with home improvement costs. The advantages of doing this include increased financing potential, lower monthly payments, speed and tax deductibility. You can also get a rehabilitation loan through the Federal Housing Authority (FHA).
This article explains several ways to find foreclosure listings and how to buy them. It provides information on searching public records, buying at foreclosure auctions and the due diligence necessary to ensure you don't buy a money pit.
You can find Wells Fargo REOs on the Wells Fargo property search page. This page lets you view listings by state, county or city. You can also search by price range. Each listing typically includes property descriptions, photographs and the listing agents' contact information. Wells Fargo also provides a service that will notify you by email whenever a new property that meets your search criteria is listed.
To look at other bank-owned or government-owned home sale listings, go to this article for links to their REOs.
When you are ready to buy a real estate-owned home from Wells Fargo and you want to finance the home, Wells Fargo provides two ways of determining how much you will be able to borrow. The first way is the free mortgage pre-qualification, which lets you know roughly how much you can borrow based on the financial data you provide. The second is a pre-approval in which a loan officer pulls your credit report and verifies your income and debt-to-income ratio. When you make an offer on a home, you send the offer and your pre-approval letter to the listing agent on the property description, not directly to Wells Fargo or a mortgage consultant.
While there are a lot of things to consider, Wells Fargo does provide the information and services that you need to make an informed decision on whether you want to buy a real estate-owned home from Wells Fargo. If you want to compare Wells Fargo REOs with other foreclosed homes, click here for free foreclosure listings from RealtyNow.