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What are the penaliteis for Wells Fargo Reo Owner Occupancy

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Leticia Concepcion

Residential Real Estate Agent from Windermere, Florida

Apr 14 '12, 01:06 PM


I want to buy an Reo but it is owner occupancy. Its a great deal in a good area and I know I can maybe do a land trust, but if the bank does not accept the land trust what are my options? If I buy in my name then deed it to the trust it should work. But if they find out that I sold my interest in the property what would be the penalties does anyone have info on that?Will I be blacklisted. Any help would be much appreciated. BTW I am a Realtor and dont want to lose my license either.



J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Apr 14 '12, 02:29 PM


The seller shouldn't care what name you buy in or whether you transfer title...all they care about is that you live in it for a year if you buy it as an owner occupant. The lender may care -- if you have a lender -- but the seller shouldn't.



Medium_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Website: http://www.123flip.com
CHECK OUT MY BIGGERPOCKETS BOOKS: http://www.biggerpockets.com/flippingbook


Leticia Concepcion

Residential Real Estate Agent from Windermere, Florida

Apr 14 '12, 04:35 PM


It's an all cash deal. Fannie has stipulations on selling for 3 months or for a certain percentage if not you can be fined 10 to 20k. This is Wells Fargo. I
Wanting to know if anyone has encountered a problem after they have. Ought and sold under these kind of stipulations.


Updated: 10:58PM, 04/14/2012

Typing from my phone sorry for the typos.

Edited Apr 14 2012, 22:58


J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Apr 14 '12, 04:55 PM
2 votes


If you buy it under the guise of being an OO, but don't actually plan to occupy it as an OO for at least a year, you're committing fraud. I don't know what the penalty is, but if you plan to do this with fraudulent intent, I hope you find out.

Don't buy as an OO unless you plan to occupy for at least a year.



Medium_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Website: http://www.123flip.com
CHECK OUT MY BIGGERPOCKETS BOOKS: http://www.biggerpockets.com/flippingbook


Leticia Concepcion

Residential Real Estate Agent from Windermere, Florida

Apr 14 '12, 10:57 PM


Your right. I thought there was a legal way to do it I dont want to go down that road. Will just have to put in my offer as is and hope for the best. Thanks for the advice.



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