Home Buying in Dallas>Question Details

Mj, Home Buyer in Dallas, TX

Does wells fargo do lease purchase on foreclosed homes? And if so, what would be the best process to get it.

Asked by Mj, Dallas, TX Fri Aug 22, 2008

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9
NO they do not, it is the job of their REO department to sell the assets to recover as much money for the bank as possible. All homes have to be vacant as they dont have the manpower or will to manage tenants in their properties.
Web Reference: http://www.ScottSellsNH.com
2 votes Thank Flag Link Fri Aug 22, 2008
Dear MJ,
I have never seen a lender do a lease purchase. They usually want to quickly unload their foreclosed homes. Also I would be careful with a lease purchase, You will need a real estate attorney to help you with this. A Realtor is not qualified to do this for you alone. Have legal representation for this transaction.

Sincerely,
Betina Foreman Realtor Austin Texas
1 vote Thank Flag Link Sun Oct 12, 2008
That's actually a great question. Banks who foreclose homes really want their money back. An innovative lender might consider in this messed up market offering leases instead of simply trying to sell the REOs they have, but tradition reigns in the financial industry. A bank is not set up to manage properties.
Their loss mitigation department would rather take a loss selling it, than leasing it out and selling it for more later. Because Federal regulations determine what operations a bank can conduct, they would have to demostrate that the property is offered for sale. A lender could find a way to place the asset into an entity that operates in real estate by managing both the sale and leasing of such assets, but only as a convenience to divest itself of the asset.
So, now that you know why banks don't just lease the properties or trade in them, you need to find a solution that works for you. In Texas a recent law now defines the responsibilites of an owner who is leasing a property to someone specifically with the intention of selling it to the tenant. The state law requires annyal reporting to the tenant-purchaser on these lease-to-own properties.
Realtors are not permitted to write up contracts that effectively create a lease-to-own situation. An attorney can draft the contract, but the landlord-seller must be willing to comply with the new state law. Most aren't interested and Reatlors are unfamiliar with such transactions.
Because the market is soft in many locations, a seller currently listing a home for sale may actually do a lease instead of a sale, in order to stop the monthly loss of mortgage, taxes, insurance and maintenance. Ask your Realtor to find you properties like that. If you can reach agreement with the seller, an attorney can draft the contract for you.
As to banks, including Wells Fargo, sorry, no lease or lease with option to buy.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Fri Aug 22, 2008
no, not that I know. but I can tell you that REO or for sale because banks are in business to lend money not own homes.
1 vote Thank Flag Link Fri Aug 22, 2008
Renting from the bank in Miami, Florida are they doing that
0 votes Thank Flag Link Sun Aug 12, 2012
Just wanted to update you all as to my situation. I am still living in this home we are waiting to buy. The bank is still "trying to come up with a price," according to the agent that is going to list it. It has now been 6 months and no word. Crazy!!
0 votes Thank Flag Link Tue Jun 15, 2010
Remax has confirmed here in Illinois that Wells Fargo has been renting out homes that are foreclosure because the market has been so poor. That's not the normal process. They decided to do it because there are soooo many empty homes. I don't have any contact info for you though. Start by calling Wells and hopefully someone in their shortsale division will be knowledgeable.
0 votes Thank Flag Link Mon May 24, 2010
Can someone give me some advise. We were renting a home with the intention of buying. We had a contract in place and were going to close 5 days before we found out the house had been foreclosed. We are still in the house awaiting for Wells Fargo to come up with a price to sell the house. We have been waiting 3 months for them to come up with a price. Can anyone tell me, is this the usual process, do banks really want to take this long to sell a house. They know we are ready to go, we are 100% Loan approved , but are still waiting. Are they waiting for us to leave the house? I dont understand this process.
0 votes Thank Flag Link Sun Mar 14, 2010
I have never heard a bank to do lease to purchase. It is not in there isnterest to keep a property, they need the money.
0 votes Thank Flag Link Wed Aug 27, 2008
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