You’ve probably seen the infomercials, the websites and the ads about the potential wealth and savings waiting for anyone who buys foreclosure properties. These ads capitalize on the drop in housing prices, lower interest rates, and the record number of foreclosed homes on the market. Before you decide to purchase a foreclosure property, it helps to educate yourself so you have realistic expectations.
A foreclosure typically occurs when a borrower is significantly delinquent on a mortgage and is unable to satisfy measures taken by the lender to help. Despite our best effort to help our customers stay in their homes, we sometimes reach a point where foreclosure is the only option. Once we acquire title to the real estate, it's referred to as a Real Estate Owned (REO) property. At that point, our goal becomes getting the property occupied, which helps the neighborhood and the community, along with recovering a portion of our costs.
If you are purchasing a Wells Fargo property or a home managed by our REO division, Premiere Asset Services (PAS), you will be required to provide one of the
following with your offer:
• A pre-qualification letter from Wells Fargo or one of its joint ventures.
• A credit approval letter from the Neighborhood Assistance Corporation of America (NACA).
• A credit-decisioned preapproval letter from another qualified lender.
If you are a cash buyer, you don't need a pre-qualification letter, but you may be required to provide proof of funds when you make your offer.
> Find answers to your REO questions
Still have questions? Chances are you'll find answers on our FAQ page.
- Our online Property Search page enables you to locate Wells Fargo REO properties that may meet your needs.
- In addition to city and state, you can search within a price range, as well as for the desired number of bedrooms and bathrooms.
- We can also alert you via email when we have other properties that fit your criteria.
- In order to provide potential buyers of our REO properties with better service, these properties are managed and marketed by Wells Fargo Home Mortgage, doing business as Premiere Asset Services (PAS).
- Once you make an offer through the listing agent, we make every attempt to respond in a timely manner, either with a counter-offer or an acceptance.
- See the "REO-related Services" box on the right side of this page for more.
The best way to find the property that meets your needs is to know what you can afford. Wells Fargo Home Mortgage can help you estimate the price range that fits your budget with a free mortgage prequalification.
To communicate that you’re a serious buyer, consider our preapproval service. Once you’re approved, you’ll receive a preapproval letter, which is our agreement to lend you up to a specified amount to purchase a home, subject to certain conditions. This makes you a PriorityBuyer®, which tells real estate agents and home sellers that you have your financing already lined up1.
Many foreclosure properties may not have been regularly maintained by the previous owners or require improvements to get them to meet your needs. So it’s possible that you may want to combine your home improvement costs with your mortgage.
- Our Home Improvement Center offers a wealth of information on the entire home-improvement process, as well as on associated mortgages.
- The Purchase & RenovateSM Loan may provide you with advantages over other types of financing.
- For example, improvement costs and purchase costs are combined into a single loan, which enables you to begin your renovation efforts immediately after the closing.
- And because loan amounts are based on the home value after the improvements are made, you could qualify for more funds than with other types of improvement loans.
- For additional benefits of this financing and other improvement information, visit the Home Improvement Center.
If you are purchasing a Wells Fargo property or a home managed by our REO division, Premiere Asset Services (PAS), you will be required to provide one of the
following with your offer:
• A pre-qualification letter from Wells Fargo or one of its joint ventures.
• A credit approval letter from the Neighborhood Assistance Corporation of America (NACA).
• A credit-decisioned preapproval letter from another qualified lender.
If you are a cash buyer, you don't need a pre-qualification letter, but you may be required to provide proof of funds when you make your offer.
Still have questions? Chances are you'll find answers on our FAQ page.
> Payment challenges?
Find help with a past-due mortgage or home-equity loan.
Learn more
1. A PriorityBuyer preapproval is not a commitment to lend. A loan commitment is contingent upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal, and title report.
You may be able to find a bargain property - if you're adequately informed and prepared to deal with possible issues. Here are some suggestions that may help you to prepare:
REO sales involve a different sales process. Try to find a REALTOR® in your area who has experience in these transactions.
REO properties are typically sold in “as is” condition, making you responsible for fixing whatever problems exist. Consider hiring an inspector and ensure that the utilities are on for a thorough investigation. You may also want a contractor to see the home to estimate repair costs.
You may need to budget for repairs in addition to mortgage and closing costs. The total price can raise your “bargain” priced home until it equals or exceeds your local market’s price.
If you're investigating an REO property, check out these helpful products and services from
Wells Fargo Home Mortgage.
- Home Sales Monitor. Guide your offer decisions with monthly updates on the sales prices in the area where you'd like to buy.
- Purchase & RenovateSM Loan. Enables you to borrow for renovation costs with one loan that may provide more by considering the home's value after improvements.
- Free Prequalification. Gives you an advantage by estimating how much you can borrow.
If you are purchasing a Wells Fargo property or a home managed by our REO division, Premiere Asset Services (PAS), you will be required to provide one of the
following with your offer:
• A pre-qualification letter from Wells Fargo or one of its joint ventures.
• A credit approval letter from the Neighborhood Assistance Corporation of America (NACA).
• A credit-decisioned preapproval letter from another qualified lender.
If you are a cash buyer, you don't need a pre-qualification letter, but you may be required to provide proof of funds when you make your offer.
Still have questions? Chances are you'll find answers on our FAQ page.
> Payment challenges?
Find help with a past-due mortgage or home-equity loan.
Learn more
Knowledge is key to buying an REO home. How much house can you afford? Which financial products are right for you? How can you renovate distressed properties? Wells Fargo puts homebuying resources and solutions at your fingertips.
Calculators
What will my monthly payments be?
Estimate payments for various mortgage amounts and interest rates.
How much could I borrow?
Estimate monthly payments based on your down payment and your debt.
Am I better off renting or buying?
See which situation might be less costly.
What mortgage meets my needs?
Answer a few questions to see options and estimated closing costs.
Mortgage Resources
Loan Descriptions:
Explore your options by browsing through our loan descriptions.
Down Payment Solutions:
See a variety of loans that might help you to buy a home with little cash.
Home Improvement Center:
Many foreclosure properties need work. Learn about the benefits of combining your mortgage loan with home improvement financing.
Buying a Home
House Wish Checklist (PDF)1:
Focus your search by identifying the most important features in your new home.
Related Services
Free Prequalification:
Estimate how much you may be able to borrow for a home.
Credit Report:
Check your credit before you start the loan process. Order your free annual credit report.
Manage Your Financial Health: The
Steps to SuccessSM Program can help customers manage credit and finances.
Rates & Tips by Email:
Get interest rate updates, mortgage and homebuying articles, and the latest market news.
If you are purchasing a Wells Fargo property or a home managed by our REO division, Premiere Asset Services (PAS), you will be required to provide one of the
following with your offer:
• A pre-qualification letter from Wells Fargo or one of its joint ventures.
• A credit approval letter from the Neighborhood Assistance Corporation of America (NACA).
• A credit-decisioned preapproval letter from another qualified lender.
If you are a cash buyer, you don't need a pre-qualification letter, but you may be required to provide proof of funds when you make your offer.
Still have questions? Chances are you'll find answers on our FAQ page.
> Payment challenges?
Find help with a past-due mortgage or home-equity loan.
Learn more
