Author Topic: Buy unlisted REO from Wells Fargo?  (Read 1678 times)

ShoulderThingThatGoesUp

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Buy unlisted REO from Wells Fargo?
« on: August 26, 2015, 05:56:47 AM »
I called Wells Fargo yesterday to report that an REO property they manage in my neighborhood had roof tarps blowing around and obviously not doing much good. They don't have the property listed, but one of the options on the phone menu was to make an offer. So I asked if they accepted offers on properties they don't have listed, and the CSR said "do you want to make an offer on this property?"

Well, maybe! I don't want it sitting vacant a few houses away from me for the next two years.

Now, this is in rough shape. I'm assuming it needs a new roof from all the tarp-age, and the roof is steep and two and a half stories up. It's not a lot of area, so we'll say $13,000 for that. It likely needs some structural help since it is 110 years old and needs a new roof - and I can see the finished back porch falling off. Guessing $20,000 to be conservative. Then, it needs a new kitchen - another $10k - and there's a good chance it has a walk-through bedroom upstairs, so that's another $5k of rearranging a few walls. Assume plumbing has been stolen - $20,000 + $10,000 in wall repairs or drywalling.

The attic could be finished to add substantial square feet, but I don't know how much that would cost. Nicely finished this house could sell for $150,000 really easily. Finishing the attic would add another $15-$20,000 of value.

With these repair costs and a sale price of $150,000 I would need to buy the property for $27,000.

Side problem that adds a wild card: the attached neighbors are smokers. Can this be solved with sealing the brick party wall?

Has anybody bought an unlisted REO property before? Do they even actually do that? Anyone have a sense of how eager they are to get these of their hands?

NoNonsenseLandlord

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Re: Buy unlisted REO from Wells Fargo?
« Reply #1 on: August 30, 2015, 07:28:03 PM »
They generally list the property, but a short sale is similar.  Make the $27K offer and see what happens.

jinga nation

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Re: Buy unlisted REO from Wells Fargo?
« Reply #2 on: September 01, 2015, 11:35:41 AM »
Nothing ventured, nothing gained.

Make a dirty money offer... worst case they'll say now. Better case they'll counter. Best case they will sell to you and get it off their books.