Rebuilding Together has teamed up with Wells Fargo to create an REO home program that helps communities transform bank-owned properties into safe affordable homes.
Through the REO program, Wells Fargo will donate foreclosed homes in its portfolio to eight Rebuilding Together affiliates in Baltimore, Los Angeles, Oakland, Philadelphia, Providence, St. Paul, Tampa and Washington, DC will participate in this program.
After the eight affiliates who are participating in this program make renovations to the donated REO homes, the nonprofit organization will work with a real estate agent to sell the home. The objective is to find a buyer who can purchase the property for 80% to 120% of the area median income.
“We are grateful to Wells Fargo for helping Rebuilding Together establish the REO program as a way to transform REO properties back toward viable homes in stable communities, while helping low- and moderate-income families obtain safe, healthy and affordable housing,” said Gary Officer, president and CEO of Rebuilding Together. “The sale of these properties can provide critical income to support Rebuilding Together affiliates in their core mission work.”
As part of the initiative, buyers are required to complete a homebuyer education class and show a certificate of completion before closing. The buyers also must be owner-occupants, as the properties won’t be sold to an investor.
Once the home is sold, the proceeds from the sale will be returned to the Rebuilding Together affiliate's operating fund. This allows all of the organizations to continue to make critical home repairs for future homeowners in need of help.
Additionally, Wells Fargo has made grants to other Rebuilding Together affiliates to rehabilitate and purchase REO properties as part of their asset building strategies. These nonprofit affiliates include Milwaukee, New Orleans, Roanoke and Sacramento.
In 2011, Wells Fargo Housing Foundation programs delivered a record $23.4 million, 697 discounted and 1,245 donated properties to support local affordable housing and community revitalization programs.
“Wells Fargo is proud to support the work of Rebuilding Together to help create affordable and sustainable housing opportunities for low-to-moderate income families,” said Kimberly Jackson, head of the Wells Fargo Housing Foundation.
