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Buy a Foreclosed Property

Considering purchasing a bank-owned, foreclosed, or REO property?

Let us help you understand your options and considerations so you can make informed homebuying decisions

If you’re thinking about buying a bank-owned, REO, or foreclosed property, you can learn more about the process, financing considerations, and options, and get prequalified or begin by searching our property listing

What are the fundamentals of buying a foreclosed home?

Your reasons for purchasing a bank-managed or REO property are as unique as you are. Learn more about the key considerations and common questions surrounding buying a foreclosed home.

Here's some helpful information about purchasing foreclosure properties.

Myth

Foreclosed properties can only be purchased with cash.

Truth

On average, approximately 60% of our foreclosed homes purchased are financed.

Foreclosed properties defined

  • A foreclosed property – also known as a Real Estate Owned (REO) or bank-owned property – is a home that was once customer owned but is now owned by the mortgage holder.
  • REO property is generally acquired as a result of a foreclosure action on a mortgage or if the property was voluntarily turned back to the lender – referred to as a “deed in lieu of foreclosure.” The investor (which may be the original lender or a subsequent holder of the mortgage) becomes the legal property owner and offers it for sale to recover the amounts owed to it.
  • A foreclosure can occur when mortgage payments are not made over a period of time and efforts to resolve the default are unsuccessful. While we make every effort to help customers remain in their homes, sometimes foreclosure becomes the only option.

Taking ownership

  • Typically Wells Fargo will respond to purchase inquiries in two business days on any property we own or manage.
  • The home appraisal, inspection and financing processes are similar to when you buy a traditional home.
  • Title and county deed recording issues could potentially delay your purchase.

Community benefits

A local community benefits when foreclosed homes are sold and occupied.

Bank owned properties pricing

We work with local real estate professionals to set fair market values that reflect the local market and property condition. Properties range in condition from fully distressed to move-in ready.

  • A distressed home may be sold at a slight discount if it is sold “as-is” with no repairs.
  • Move-in ready homes are typically priced at market value.

Homebuyer advantage

We provide a special five-day window that provides owner occupant buyers with a chance to bid on a home before we accept offers from investor buyers.

Cash purchase considerations

If you’re considering the purchase of a foreclosure property, you may want to evaluate whether you should purchase the property outright with your cash reserves, or whether you should finance the purchase.

Buying your foreclosed property with cash means:

  • You’ll have no monthly loan payments, no interest expense or closing cost expense
  • You may be able to close sooner
  • You may have a better negotiating position
  • You may be able to apply for financing at a later date 

Obtaining home loan financing for a foreclosed property means:

  • Financing may allow you to maintain access to your cash reserves for investments, emergencies, and other purposes.
  • You may have more purchasing power than with cash alone.
  • You may receive tax benefits, including the potential to deduct your interest payments. Consult your tax advisor.
  • The lender orders services such as appraisals and inspections. If you’re purchasing a home with cash, you’ll be responsible for obtaining these services.

Condition of REO homes available through Wells Fargo

We employ local contractors to repair many of our properties. If an REO property needs repairs or improvements, our Purchase & RenovateSM loans cover both needs. Loan amounts are based on the increased value of the home after improvements are made. Renovations can begin immediately after closing (restrictions apply). And the renovation costs are spread throughout the entire loan term.

What should I consider before I buy and finance a foreclosed home?

Motivation

Your reasons for purchasing the property dictate many of your considerations. You may benefit from information and insight from our Learning & Planning Centers when finding and financing your home:

Type of foreclosed home

  • Are you looking for a move-in ready home or are you willing to make repairs? If you are considering a home that needs repairs or remodeling, Wells Fargo has options that let you combine your home improvement costs with your mortgage.
  • Our Purchase & RenovateSM loan option allows you to borrow based on the future, improved value of the home instead of the current value. Renovations can begin immediately after closing (restrictions apply). And the renovation costs are spread throughout the entire loan term.

Inspection and repair

Before you buy a foreclosed property, you may want to consult with a reputable home inspector about the kind of repairs and costs to expect for the type of homes you have in mind.

Financing

  • 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 prequalification letter from Wells Fargo. 
    • A credit-decisioned preapproval letter from another qualified lender.
  • If you are a cash buyer, you don’t need a prequalification letter, but you may be required to provide proof of funds when you make your offer.
  • If you are keeping your current home, you may be able to use the equity in your current home to buy a bank-owned home:
    • You avoid paying private mortgage insurance by making a down payment of 20% or contribute a larger down payment to lower your monthly mortgage payment.
    • Typically, the interest on home-equity financing can be tax deductible. (Consult your tax advisor regarding the deductibility of interest.)

How can I get started with homebuying?

Knowledge of the area where the property is located, as well as an understanding of the financial considerations that go along with buying a home can increase your chances for a successful start. Here are some steps you can take to get started.

Create a financial plan

Understand your credit needs and borrowing ability.

  • Check your credit history and make a plan to get your credit in shape if necessary.
  • Determine how much you can put toward a new home. The total amount you need is the sum of your down payment and closing costs.
  • Use our monthly payment calculator to estimate payments for various mortgage amounts and interest rates. Your monthly payment will usually also include an amount for property taxes and homeowners insurance. And, if your down payment is less than 20%, you’ll generally also need to get private mortgage insurance (PMI). 

Video - How much can you borrow?

This video details housing and debt-to-income ratios, two factors lenders use to help determine your borrowing limits.

Calculate your housing and debt-to-income ratios to assess your ability to make payments.


Set a time frame

Determine when you’d like to buy your home and use your financial and credit information to establish a budget that can help you achieve your goal.

Consider using a real estate agent

While it’s easy to search for homes online today, you receive invaluable information and assistance by working with a licensed real estate agent.

Many real estate agents also hold a REALTOR® designation. A REALTOR® is a member of the National Association of REALTORS® (NAR). The NAR trains its members in the most effective professional practices and requires them to abide by its strict Code of Ethics.

A licensed real estate agent may help you navigate the homebuying transaction more smoothly. Some of the benefits you’ll enjoy include:

  • Professional assistance and representation
  • Marketplace experience and access to up-to-date information
  • Services provided at no direct cost to you because the agent is compensated from the seller-paid commission when you buy a home

Get started finding a real estate agent by asking friends and family for referrals, ask your home mortgage consultant, or do your research online.

What home financing basics should I understand?

If you obtain home financing, you’ll repay more than the amount you borrowed. How much you repay is determined by several factors, including your interest rate and loan amount. Here are some terms you should understand.

Interest rate

  • The interest rate is the percentage of your loan amount we charge you to borrow money.
  • Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today’s rates.

Discount points

  • One point equals 1% of your mortgage amount. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments.
  • Points are usually tax deductible. Consult a tax advisor regarding tax deductibility. On refinances you may be able to finance points as part of your mortgage amount.

Origination charge

  • On a mortgage, this amount includes all charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan.
  • The origination charge covers items including fees, document preparation, and underwriting costs, and other expenses.
  • On refinances, if you qualify, you may be able to finance the origination charge as part of your loan amount.

Loan term

  • Your loan term is the amount of time you have to pay off your mortgage balance.
  • Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates.
  • If you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer-term mortgage.

Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, fees, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their total annual cost.

Monthly mortgage payment

Your monthly mortgage payment is typically made up of four parts:

  • Principal. The part of your monthly payment that reduces the outstanding balance of your mortgage.
  • Interest. The part of your monthly payment that goes toward the cost of borrowing the money.
  • Taxes. The part of your monthly payment that goes toward property taxes charged by your local government. We typically collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.
  • Insurance. The part of your monthly payment that pays for homeowners or hazard insurance, which provides protection against losses from property damage due to wind, fire, or other risks. Like taxes, insurance costs are usually collected and paid from an escrow account.

Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees.

Video - The components of a mortgage payment


Watch this video to understand what makes up a typical mortgage payment – principal, interest, taxes, and insurance – and how they can change over the life of the loan. 

Check today’s rates to see our current interest rates.

How can I estimate how much I might be able to borrow?

There are different ways to estimate a price range that's appropriate for you. The words prequalification and preapproval may refer to two different services provided by mortgage lenders. While both are useful options for learning your potential purchase price range, it’s important to understand how they differ.

Prequalification

If you’re considering buying a home, our prequalification letter gives you a general estimate of the loan amount you may qualify for based only on preliminary information you provide (without us obtaining a credit report).

Preapproval

Our PriorityBuyer® preapproval letter empowers you to bid on a home with confidence and lets sellers and real estate agents know you mean business. It’s more formal than a prequalification because it:

  • Confirms you’ve submitted an application, are credit-checked and have completed the first loan decisioning phase.
  • States the approximate mortgage loan amount and purchase price range for which you qualify, subject to certain conditions or documentation.
  • Means we may offer a loan commitment once all information on your application is verified, underwriting requirements and conditions are satisfied and acceptable property-related reports are provided.

Video - Prequalification versus preapproval

Prequalification versus preapproval This video defines two options for estimating your price range for a house and the benefits of each. 

Have questions or need help? Your home mortgage consultant is available to help throughout the financing process. Contact us today.



Benefits of a preapproval 

Having a PriorityBuyer® preapproval letter can provide several benefits. It identifies you as a serious buyer, adds to your negotiating strength when making an offer, lets you shop confidently, and may allow for a faster closing.

It can also help you identify and address possible qualification needs early in the homebuying process. Plus, if you’re a first-time homebuyer with no record of previous mortgage payments, a preapproval may help you feel much more confident pursuing your first home purchase.

How will you evaluate my home financing application?

When you apply for home financing, we generally use these four main criteria to assess your application.

Income

Do you have a reliable, continuing source of income to make monthly payments?

  • Income can come from primary, second, and part-time jobs, as well as overtime, bonuses, and commissions.
  • You may use other sources of income if you want them considered for payment, provided they can be verified as stable, reliable, and likely to continue for at least three years. Some examples include retirement or veteran’s benefits, disability payments, alimony, child support, and rental or investment income.

Current debts and credit history

Do you pay your bills, loans, credit cards and other debts on time?

  • We examine your payment habits before deciding to loan you money.
  • We also review your credit history and credit score.

It's a good idea to check your credit history and correct any problems before applying. Wells Fargo also offers a series of online credit education videos.

Assets and available funds

Do you have enough funds for a down payment (if you're buying a home) and closing costs?

  • You may use funds from various accounts including savings accounts, certificates of deposit (CDs), investments, and retirement funds.
  • If you're buying a home, in some cases, you may be able to use gift funds toward closing costs and all or part of your down payment.
  • Generally, you’ll also need to show that you have additional funds in your accounts to cover several months of mortgage, tax, and insurance payments.

The property

What is the market value of the property you want to finance?

We will order a property appraisal to make sure the value of your property meets our underwriting requirements.

Responsible lending guidelines

We approve applications where we believe the borrower has the ability to repay according to the terms of the financing. We use two ratio-based guidelines to evaluate your ability to repay.

Debt-to-income ratio

Debt-to-income ratio is the percentage of your monthly income that is spent on monthly debt payments.What is debt-to-income ratio? Debt-to-income ratio is the percentage of your monthly income that is spent on monthly debt payments.

  • We compare your expected monthly mortgage payment (principal, interest, taxes, and insurance) plus other monthly debt obligations to your gross (pre-tax) monthly income.
  • Mortgage program guidelines vary, but a good rule of thumb is to keep your total debt level at or below 36% of your gross monthly income. 


Housing-expense-to-income ratio

Housing-to-income ratio is the percentage of your monthly income that is spent on monthly housing payments.

What is housing-to-income ratio? Housing-to-income ratio is the percentage of your monthly income that is spent on monthly housing payments.

  • We also compare just your expected monthly mortgage payment (including taxes and insurance) to your gross monthly income.
  • Mortgage program guidelines vary, but a good rule of thumb is to keep your housing expense level at or below 28%.

Even if you fall within the 28%/36% guidelines, make sure you’re comfortable making your monthly mortgage, insurance, and tax payments, in addition to all of your other monthly payments. Remember that homes have other costs — such as utilities, maintenance, and repairs — that may not exist if you rent.

How to calculate your ratios

How can I find and finance a bank managed property at Wells Fargo?

Property search

We can help you find bank managed properties in your area. Visit our website to:

  • Locate Wells Fargo owned or managed properties that meet your needs by searching for city and state, property features and price.
  • Sign up to receive email alerts when new properties are listed that fit your criteria.
  • Receive a timely response--either with a counter-offer or an acceptance--Typically within two business days.

You or your real estate agent should contact the listing agent to view any properties of interest. The listing agent is your direct communication line to the seller

Repairs and improvements

When you find a home that meets your needs, it may require improvements. You can choose to combine your home improvement costs with your mortgage. When improvement costs and purchase costs are combined into a single loan, you can begin your renovation efforts immediately after the closing (some restrictions apply).

Wells Fargo has options to combine your home improvement costs with your mortgage:

Our Home Improvement Center provides a wealth of information on the entire home-improvement process, as well as on associated loan options.

The Purchase & RenovateSM loan may provide you with advantages over other types of financing.

What can I expect during the homebuying process?

Your real estate agent can help you through each stage of the homebuying process.

Get preapproved

As you go through the process it’s a good idea to have a preapproval for maximum leverage.

Our PriorityBuyer® preapproval letter identifies you as a serious buyer, adds to your negotiating strength when making an offer, lets you shop confidently, and may allow for a faster closing.

Make an offer

Work with your real estate agent to determine the appropriate amount for your initial offer based on comparable home sales, market value, condition of the home, and your closing date.

Put your offer in writing 

Handle all negotiations in writing to make sure both parties understand the terms of the agreement. If you do negotiate verbally, follow up in writing.

Submit a deposit 

This "good faith" deposit demonstrates your commitment to the transaction.

Finalize your purchase contract

The contract is a legally binding contract between the buyer and seller describing all the terms of the transaction. Depending on your state, an attorney, real estate agent, or title company may help negotiate and draft the contract.

Other tools and resources

While our Learning and Planning Center helps you understand all the stages of the home financing process, we also provide additional tools and resources.

 

Understand your basic loan options

We can help you get started learning about different home loans. Below are a few options you may want to consider based on features that may be important to you. To see additional home loans, visit our Loans & Programs area.

Loan options to consider
Fixed payments
Lower payments starting out
Lower down payment
Money for renovations
Equity from your current home to buy another
Fixed-rate mortgages
View details
  • Y




Adjustable-rate mortgages
View details

Yes



FHA/VA Loans
View details
Yes
Yes
Yes


Purchase & RenovateSM Program
View details
Yes


Yes

Home equity financing
View details




Yes

 Find the Right Loan for You 

Customize and compare rates, payments, and estimated closing costs.

Get started

We focus on your mortgage and home equity needs with the goal of delivering a straightforward and convenient application experience. Let us show you how easy it is to apply for mortgage or home equity financing with Wells Fargo.

The mortgage application process

How do I apply for a mortgage?

Gather essential information

When you apply for a mortgage you’ll need to provide financial and property information to complete the application. This includes:

  • Income, asset, and expense information
  • Estimated purchase price and down payment (if buying)
  • Estimated property value and loan amount (if refinancing)

Review our homebuying application checklist (PDF)* or refinance application checklist (PDF)* to learn more. 

 Tip 

You'll need to provide documentation to support the information on your application later on in the process, so it's a good idea to start gathering the documents now.
 

Video - The loan application process

Watch this video to learn how your loan application moves through the process.

Remember, your home mortgage consultant will be there to support and guide you every step of the way.



Begin your application

Get started through any of these convenient ways:

  • Call us at 1-877-937-9357, Monday – Friday, 7:00 am – 9:00 pm, and Saturday, 8:00 am – 4:30 pm Central Time.
  • Find a local consultant and start the application process by phone or in person.
  • Request a personal consultation to have a home mortgage consultant contact you.

Once you apply, you’ll receive important disclosures about your loan. If your loan is eligible to be tracked through yourLoanTracker, you’ll receive a notification from your home mortgage consultant.

Do I need to pay a fee to submit a mortgage application?

Yes, there is a fee to apply for a mortgage. Fees cover the cost of the credit check, verification of your financial information, and property appraisal. Fees vary by loan type and the location of the property. Your home mortgage consultant will provide specific fee details during the application process.

Is there an advantage to locking in my pricing?

If you want to avoid the possibility that interest rates will rise before you close on your home loan, you can lock in your loan pricing after your mortgage application is completed.

For more information, please refer to the Loan Pricing Disclosure.

Is the process different for some types of mortgage loans?

Yes, renovation and new construction mortgage applications involve some additional steps.

Renovation mortgages

If you're purchasing and renovating or refinancing and renovating, you'll need to estimate the post-improvement value of the property. The property appraisal obtained during the processing of your loan must support this estimate.

Visit our Home Improvement Lending Center for more information.

New construction mortgages

When you're purchasing a home from a builder, the new construction mortgage application process is very similar to the process for buying an existing home. However, on new construction loans, you also have the option of choosing our Builder Best® Extended Rate Lock program. 

Visit our Construction Lending Center for more information.

The home equity application process

How do I apply for home equity financing?

To apply for home equity financing, you must own a primary residence, investment property, or vacation home. If you don’t own property, please consider a personal loan or line of credit instead.

It's easy, fast, and secure to apply:

Gather essential information

Before you start, have the following information on hand:

  • Financial information. Income, asset, and expense information.
  • Property information. Estimate a realistic value of your home.
  • Funds needed. Carefully evaluate the line of credit amount you'll need.

 Tip 

You'll need to provide documentation to support the information on your application later on in the process, so it's a good idea to start gathering the documents now.
Review our home equity application checklist (PDF)* to learn more. 

Submit your application

It’s easy to get started. Choose to work with us whichever way is best for you:

  • Online. Fast, easy and secure and it will take about 10 minutes. Apply Online.
  • Over the phone. Speak with a home equity specialist at 1-888-667-1918.
  • In person. Find a Wells Fargo location near you.

Remember, if you have questions, our home equity specialists are ready to help. You can also track the status of your application 24 hours a day, 7 days a week with yourLoanTracker.

Do I need to pay a fee to submit my home equity application?

There is no fee to submit a home equity application. For closing cost fees, you can select the home equity closing cost option that meets your needs. If you’re a Wells Fargo customer, you may also benefit from additional discounts. 

What should I consider when applying for home equity financing?

  • Make sure your requested line of credit amount is between $10,000 and $500,000 (some state restrictions apply). For larger line amounts, please contact us.
  • Carefully evaluate how much you need. Your requested amount plus the existing mortgage balance and any other outstanding liens against your property should be less than 80% of your home’s current value.
  • Provide a conservative estimate of the value of your home.
  • Track the status of your application by signing up for yourLoanTracker.
  • Ask about special interest rate discounts for Wells Fargo customers.

After you apply for your mortgage or home equity line of credit, we’ll work with you to ensure that the process is a straightforward and satisfying experience.

After you apply for a mortgage

What happens after my mortgage application is submitted?

We’ll send you disclosures listing your loan terms as well as estimated payments, and your application will be reviewed by an underwriter.

During the financial and property review, we’ll:

  • Verify your employment, income, and financial information
  • Order services such as an appraisal, title insurance, and flood certification.
  • Send you a list of conditions, upon loan approval, that have to be met before you can prepare to close your loan.

Learn more about the documents you may be asked to provide.

You’ll need homeowners insurance to close your loan. Get competitive quotes from multiple insurance providers through Wells Fargo Insurance.  Call 1-877-260-7471, Monday through Friday, 7:30 am to 8:00 pm or Saturday from 9:00 am to 4:00 pm Central Time.

How does the mortgage closing process work?

Prepare to close

Once your application is approved, we’ll work with you and your closing agent to complete the following steps:
  • Ensure all loan approval and closing conditions have been met.
  • Confirm or set a closing date to sign your loan documents.
  • Review the title insurance to make sure you have rights to the property.
  • Review your homeowners insurance policy to make sure you have adequate coverage.

Before your closing, you'll receive your final disclosures confirming the amount of money you’ll need, so you can arrange to have funds available for your closing.

At closing

We’ll send the closing documents to your closing agent. On your closing day, review the documents carefully with your agent, then sign and date them.
  • If you're buying a home, collect the keys and move in. Congratulations!
  • If you're refinancing, you have a three-day right-of-rescission to cancel the transaction.

After your loan closes, you can manage your account online. Wells Fargo Online® gives you convenient access to account information, tax data, and payment options. Learn more about online payments or sign up for online banking.

How can I keep track of my mortgage application?

Your home mortgage consultant can answer any questions regarding your application status. Also, if you're notified that your loan is eligible, you can use yourLoanTracker to:

  • Receive disclosures
  • Provide financial documents
  • Check the progress of your application
  • Receive status updates throughout the process

What can I do to help my mortgage close on time?

Here are a few important steps you can take to help your mortgage loan close on time:

  • Provide accurate information during your loan application interview. Discrepancies in your credit history, employment history, or current bank account balances could delay your loan process.
  • Help keep your application moving by submitting requested documents promptly. Learn more about documents we may request  in our document library.
  • Do not make big purchases, take on additional debt, transfer large amounts or make large deposits unrelated to your loan, until after your closing.

Is the process different for other types of mortgage loans?

Yes, renovation mortgages and new construction mortgage loans involve some additional steps.

Renovation mortgages

  • For all renovation loans, we base the appraised value on the completed improvement value.
  • Wells Fargo must approve your contractors and close the loan before work can begin. Our funding department will assist you in making interim payments to your contractor(s).
  • If you have an FHA 203(k) loan, we must perform inspections of the work before we release funds.
  • Once the inspector is satisfied with the work quality, we release the funds from the escrow account. The checks are made out jointly to you and your contractor. Typically, we do not release funds until work is completed. Upon completion of the project, we perform a final inspection and we disburse the final funds.

Visit our Home Improvement Lending Center for more information.

New construction mortgages

  • You have additional rate lock options with our Builder Best® Extended Rate Lock program.
  • We’ll work with you to get your permanent loan approved. We’ll also get the final plans and specs so that we can order an appraisal.
  • After we have the appraisal and a fully executed purchase contract, we’ll submit the entire package for final construction loan approval.

Visit our Construction Lending Center for more information.

After you apply for home equity financing

What happens after my home equity application is submitted?

We’ll review your application and complete the following:

  • Let you know the status of your application within two business days.
  • Request additional information such as financial documentation and income verification.
  • Order appraisal, title insurance, flood certification, and other services as necessary.

You can also track the status of your application 24 hours a day, 7 days a week with yourLoanTracker.

How does the home equity closing process work?

Choose to close in a Wells Fargo bank store, or from the comfort of home by mail if available, or if eligible, through our virtual closing option (PDF)*.

  • To keep things moving, be  sure to sign and return all requested documents as soon as possible. 
  • If additional documents are requested, you can learn more about them in our document library.
  • Your home equity specialist can help you understand what may be required.
  • We'll activate your account after we receive your signed documents and your right-to-cancel period, if any, has expired.

You’ll be able to access your available credit with your Enhanced Access® Visa® credit card, access checks, Wells Fargo Online® banking, or your ATM card.

After you close, you can manage your account online. Wells Fargo Online® gives you convenient access to account information, tax data, and payment options. Learn more about online payments or sign up for online banking.

How can I keep track of my home equity application status?

With yourLoanTracker you can:

  • Receive disclosures
  • Provide financial documents
  • Check the progress of your application
  • Receive status updates throughout the process

What can I do to help my home equity financing close on time?

  • Monitor yourLoanTracker to keep track of your progress.
  • Make sure you sign all relevant documents, get them notarized (as needed) and return them to us as soon as possible.

 

After your mortgage or home equity financing closes we provide a variety of ways to manage your account online. View account activity, transfer funds, make payments, and more — anytime, anywhere and at your convenience.


Manage Your Mortgage Account

Manage Your Home Equity Account

Manage Your Finances

Real estate owned (REO) property is generally acquired as a result of a foreclosure action on a mortgage or if the property was voluntarily turned back to the lender—referred to as a "deed in lieu of foreclosure." The investor (which may be the original lender or a subsequent holder of the mortgage) becomes the legal property owner and offers it for sale to recover the amounts owed to it.

Premiere Asset Services (PAS) provides REO management for the mortgage portfolios serviced by Wells Fargo Home Mortgage.

PAS is the trade name Wells Fargo does business under to manage REO's on behalf of other large banks and financial institutions.

The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization.

Closing cost options
Most home equity financing offers two options:

Have us pay your closing costs:

Pay your closing costs:

For details, please call 1-888-421-4672.
Private mortgage insurance
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on the mortgage. Borrowers are required to pay the premium for private mortgage insurance. Private mortgage insurance limits a lender's exposure to financial loss resulting from loan default. If you make a down payment of less than 20%, even if you have a good credit profile, lenders generally require private mortgage insurance.

Appraised value

The home's estimated value — known as appraised value — is an important part of your financing. If you're purchasing, this value usually needs to be equal to or more than the home's purchase price. If refinancing, the appraised value helps to determine your maximum loan amount.

Title insurance
An insurance policy that protects a lender or homebuyer (if the homebuyer purchases a separate policy, called owner's coverage) against any loss resulting from a title error or dispute. On a refinance, if the property has had a recent title insurance policy, a homeowner may sometimes be eligible for a reduced rate on the title insurance (also known as the reissue or refinance rate).
Conditions
Standard conditions include our receipt of homeowner's insurance policy, flood insurance if necessary, and an acceptable title insurance binder.
Closing agent
This is the person or company that coordinates the execution of your closing documents. May be called by different titles in different states. Some common terms are attorney, title company, settlement agent, escrow company, notary, among others.