John asks this question. There is a foreclosed property that appears to have been foreclosed on November 16th. What will happen with such a property? We are a non-profit organization working to save this neighborhood and would like to have an opportunity to buy it. How should we proceed? This is a general question, I know, but wondering what is the usual process.
This is a question which the answer unfortunately contains a lot of “it depends”. You clearly have a worthy cause as a non-profit and some banks recognize that organizations such as yours are keys in neighborhood regeneration. One foreclosure seller, specifically HUD, provides for a an early opportunity for non-profits and government entities to have the first opportunity to buy foreclosed properties. HUD offers non profits a discount of up to 30% in purchasing HUD Homes. Here is a link to the specific details about HUD properties.
Wells Fargo lets non-profit buyers purchase properties prior to investors. During the first 15 days of a listing, non-profits (as well as owner occupant buyers and municipalities) can purchase the property without competing with investors. More details at this link.
Fannie Mae also has a program for non-profits through their HomePath sales team. Offers are placed online through the HomePath website. Non-profits and public entities have access to properties in the First Look period. Fannie Mae has a buyers guide available for non-profit entities on their website.
As an non-profit looking to purchase a neighborhood property, it’s important to first determine who owns the property. If the owner is HUD, Fannie Mae or Wells Fargo there will be some preference given to a non-profit. Other bank owners may have programs as well. Finding out who owns the property and contacting them (or their agent) is the best first step. Unfortunately, there is no standard process when it comes to foreclosure property sales.