Even with the real estate industry well bounced back from the 2008 recession, millions of foreclosures are filed all over the nation every year. The industry constantly fluctuates, and even in the best of times, there are a lot of real-estate-owned properties out there. Naturally, banks and companies that own these properties want to get them off the market fast.
The question for these companies is whether to clean the property or lien it? Learn what it means to clean or lien and how you can best deal with foreclosed properties to get the most out of the vacant home you have on the books.
The Problem with Foreclosures
One major problem when it comes to how to deal with foreclosed properties is that all too often, these properties sit derelict, not maintained because lenders have more foreclosed properties than they can reasonably manage. It then falls on the cities to deal with the issue, lest entire neighborhoods fall into disrepair.
Cities can’t afford to have urban decay take hold — it leads to low property values and rising crime rates. Officials are pressured to prevent this. Lenders, on the other hand, need to maintain such properties so that they can get a better value for sale.
Foreclosure Ordinances
When the problem became severe around 2008, many cities and municipalities began issuing ordinances regarding the upkeep of foreclosure properties. These ordinances deal with abandoned properties, proof of vacancy and the maintenance of neighborhood standards. In general, these ordinances require that the yard and landscape be properly maintained with no visible trash, graffiti, or damage, any pools and spas have to be kept clean, and the property must not “appear” abandoned.
The Need to Deal with Foreclosed Properties
Maintaining and securing these properties can cost money, time and resources that most lenders don’t have. Unfortunately, the cost of not dealing with these properties can be high. Failure to maintain your property can result in many thousands of dollars in additional civil penalties.
In some areas, the municipality may even step in to maintain the property on their own, charging the owner for the services rendered, which can be more expensive than doing it on your own. This is why it’s so essential for those who have REO properties to stay on top of the maintenance needs. Not only this, if the goal is to resell quickly, the better the property looks, the faster it will sell.
Calling an REO Services Company
If you’re looking to take care of a real-estate or bank owned foreclosure property, calling an REO services company can be a great way to go. It can save you money in the long run and maintain the property in a way that allows it to sell quickly. If you’re in the Baltimore area, First Freedom is here to help you do just that. Read a bit about who we are and what we do, and get in touch with us for more information today!
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