REO Property Preservation handles the task of preserving a property possessed by a mortgage lender or a bank. For that is what REO is, Real Estate Owned. These are the properties that have become the bank’s property after foreclosures, when the owners cannot afford their mortgage payments. These properties would have failed to attract any bid in the event of a foreclosure auction and had a market value less than the debt owed to the banking company. Such properties will usually be in a bad condition due to low maintenance by the possessor or tenant, which is why the lenders would need such services.
Services of REO Property Preservation Companies
Since a real estate owned property is a nonperforming asset for the banking company, they would want to sell it, so they would prefer it to be in a healthy shape. This is why they take the services of REO property preservation companies. The teams commonly remove rubble and waste in and around the holding, execute janitorial services, plank up the windowpanes, and re-key and secure all entries. The services also include landscaping and improving the landscape or outdoors of the property to a decent state. They also prepare for winter if necessary.
Property preservation becomes challenging if the property is occupied. For that reason, many companies also provide dispossession as part of their property preservation services. These are of course the initial services. Property preservation companies also provide repeating and regular services such as review, upkeep, and at times, even cleansing.
Prepare the Properties Before the Sale
The firms also prepare the properties before the sale. This preparation may include lawn trimming, cleaning the home inside out, and scrutinizing and renovating plumbing, HVAC, electrical furnishing, etc. Generally, banks prefer to sell these houses in an as-is condition; but if they want to do renovation or remodeling to increase the houses equity or to keep a deal from falling through, the preservation companies may also provide these property preservation services.
Presently, because of the economic situation, the number of foreclosures and REO properties has been on the rise. This has got an increase in the demand for REO property preservation, as banking companies and lenders find themselves with more and more non-performing assets that need to be developed, to be of any value in real estate. When rendered well, the preservation services can improve the REO property’s standing in the real estate market.