Foreclosure - Wells Fargo

General Real Estate Investing
1

I originally posted this on the foreclosure forum, but thought I would post it here as well. Thanks to all!

Hi all and happy holidays!

We (Wife/partner/self) have found a foreclosure locally in a state of serious disrepair. It is being listed by a local agent, but in doing my research, have found that it has been on the market for well over 18 months and that Wells Fargo is holding it as an REO.

The ARV in the area is around $160K. the agent is listing it for $139.9. The problem lies in that the property need a minimum of $40K in repairs (roof, siding, doors, windows, bath(s), kitchen, gutters). It’s not a total gut, but does need a great dea of TLC to get it to market value.

Now for my question… ??? ??? ???
I would rather try and deal with the Loss Mitigation dept of Wells Fargo, rather than the local realtor, documenting to WF, all of the various and sundry reapirs that need to be made, and in the process hoping to get them to accept a much lower price ($70-75K).
Do any of the more seasoned vets on this wonderful site have any
words of wisdom for me? Should I pursue Wells Fargo, or try the local realtor first?

Thanks in advance and happy holidays to all!
-JC

2

Hello,
Maybe you’ve already recieved the answer to your question, but just in case. If the property is listed with a realtor it means you have to go through the realtor to submit any offers. It is better to get your own realtor to submit offers for you, and he might be able to get you some inside information. The fact that it has been on the market for so long means the bank might be willing to accept a low offer. Sometimes it helps to explain why you are submitting such an offer.

3

Thanks for the info. I’m thnking that is the route we will go. I plan on submitting pictures and repair estimates with the contract offer. Keep your fingers crossed! :wink: >:( >:(

4

That is correct if it is listed you MUST use a realtor!

Here is a example of what I submit with an offer, I call it an Explantaion of offer Form!

ARV $169,000.00

Repairs $45,000.00

Holding costs (for me as investor) $7,200.00

Net profit I make 5,000

OFFER $111,800.00

Of course there are other things you can include but this is it for the basics!

                                         Robb
5

Robb,
Your profit margin is too slim for the effort?

Here is what i did with my latest offer.
I have loaded up high resolution pictures of the damages
on my website and added the link in my
“explanation of offer” letter.
In addition, i pitch that the property is gonna be a rental,
so they might take the hint and offer financing.

I have requested a 20% discount off the ARV for the
effort/risk/unknown issues.

Will let ya know what i hear back.
-Krish

6

Krish

I do 30-40 of these a month!! And own my share of rentals!! The bank could care less about your pics, Or your web site Sorry to be so blunt just a fact!!

Why not include the fact that you will finance it through them they like that and will be a little more apt to take your offer!!

Also the other thing to keep in mind is that example I showed you was a property I bought and was not a fixer! Had to shampoo the carpet!!

                            Robb