Banks giving away scores of abandoned, foreclosed properties
A handful of the nation’s largest banks have begun giving away scores of properties that are abandoned or otherwise at risk of languishing indefinitely and further dragging down already depressed neighborhoods.
Bank of America and Wells Fargo announced plans last summer to donate scores of abandoned and foreclosed properties in cities that are hardest hit by the housing downturn. J.P. Morgan Chase also has made regular donations. Fannie Mae, the massive mortgage finance company seized by the federal government three years ago, began donating properties early on and now hands over hundreds of properties a month.
Real Estate Owned (REO) Property Donation ProgramPurpose : To facilitate the transfer of Wells Fargo owned or managed REO properties to cities and nonprofits seeking to revitalize neighborhoods and provide sustainable homeownership or rental opportunities to low- to moderate-income (LMI) people. Nonprofits must have completed at least two consecutive years of operations as of the date of application. Organizations must include financial statements, audited if possible, for the immediate prior two-year period and/or IRS Form 990 for the same period.
Goal: To help stabilize communities and the lives of the people who live in them.
1. Locating properties•Applicants can visit Wells Fargo’s REO website to review properties available for sale.
• Nonprofit Organizations and Government Entities can contact the listing agent to visit properties listed on the website. This is encouraged before requesting a donation.
• Not all Properties listed on the website are eligible for donation. Properties that hold lower values and have longer market exposure are more likely to be eligible for the program.
2. Transferring properties
• The length of time to transfer a property may vary depending on the investor, requestor and other factors. Wells Fargo will make every effort to ensure properties are transferred within a reasonable timeframe.
• Wells Fargo uses a donation agreement and quit claim deed to convey title for donated properties.
3. Requesting properties• Organizations and entities with REO rehab experience may request one or multiple properties through the on-line application.
• Receipt of all applications will be acknowledged via email and program approval will be provided within five (5) business days of the receipt of your application.
• The online application is required for the initial property request. Once approved to participate in the program, additional property requests can be sent to REODonationProgram@wellsfargo.com.
Download Guidelines https://www.wellsfargo.com/about/wfhf/realestateowned
For Nonprofits Only: To Submit Your On-line Application• For instructions to help submit your application Click Here
•To print and review the on-line questions before submitting application online Click Here
•To submit a new application Click Here
•To return to an application already started Click Here
Questions? See our Frequently Asked Questions or contact the Housing Foundation at 612-667-5131.
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