Top

Managing Distressed Properties at Wells Fargo Community Development

Guest post by Lauren Martinez of Wells Fargo REO Community Development In a little-known corner of Wells Fargo lives the REO (real estate owned) Community Development Team. This 30 person team, on a basic level, manages distressed properties that have gone through foreclosure while trying to find a suitable nonprofit organization or municipality to receive the properties as donations. The idea is pretty simple, but the effects of the idea create something wonderful out of (nearly) nothing.

This program began in 2009 and has grown over the past six years to donating more than 1,500 properties each year. Of course, there are some regions and states that see more donations than others, states like Florida, Maryland, and, more recently, New York. Wells Fargo operates both a large scale program that donates multiple properties at a time to organizations that have a housing-focused mission and extensive experience rehabilitating homes, as well as a smaller scale program called the Community and Urban Stabilization Program (known as CUSP). This program focuses on a wider target of non-profit organizations and places of worship that do not necessarily have a housing mission but do have the desire and ability to rehabilitate and use a distressed property for a good purpose. The underlying idea of both of these programs is to provide these non-profits and the communities that they serve with an opportunity to stabilize neighborhoods that need it.

It’s truly inspiring to see the wonderful things the nonprofits do with the properties. From vacant lots, we’ve seen community gardens and parks appear; from distressed homes we’ve seen food pantries, low income housing, non-profit office and meeting spaces take shape. The possibilities are virtually endless, and we at Wells Fargo are so proud to play a part in it. It’s no secret that the non-profits are those that put in the long hours and hard labor to put these homes and lots to good use. I often like to think of the process as growing a garden. The non-profits spend the time cultivating, watering, nurturing and weeding out what’s causing the blight. We’re providing the seed for the organizations to make something beautiful out of a less than ideal situation.

“From a small seed a mighty trunk may grow.” –Aeschylus

If you’d like more information on our programs, please visit http://reo.wellsfargo.com/community.

The pictures provided below are before and after photos of a rehabilitation completed by the Trumbull County Land Bank, located in Warren, Ohio. This non-profit organization’s focus is “to help return vacant and abandoned properties in Trumbull County, Ohio, to productive use.” The house is now a “first home” for a young couple.

Pic1

Pic2

Pic3

Pic4

Pic5

Pic6