No lender wants to foreclose on a property. Not only is it a hassle to take back a property that you loaned someone the money to buy, but it can cost the lender hundreds of thousands of dollars in time, manpower, effort and in direct cash losses when they have to deal with an abandoned, foreclosed or zombie home.
Of course, the first order of business is to get the home sold. To do this, however, often requires tools and skills the lender doesn’t necessarily have. Banks, for example, rarely keep plumbers, electricians, landscapers and the like on staff, but maintaining the property until it gets sold is essential. Discover some common maintenance musts for bank-owned property and what you can do to get your REO property off the market as fast as possible.
Maintenance Musts for Bank Owned Property
The most essential maintenance musts for bank owned property come down to keeping the property habitable, attractive, and looking like it’s livable. In fact, this isn’t just a must for selling the house. It’s a must for avoiding further loss in the form of penalties and fines from the municipality where the home is located.
Penalties for Failure to Maintain
In some municipalities, failure to maintain a bank-owned property can subject the owner (the bank) to major penalties and fines in the tens of thousands of dollars. In the worst cases, ordinances may allow the municipality to step in and affect repairs, and then charge the owner for the costs, which are rarely insignificant. It’s far better to keep the property in shape from the start.
Keeping the Property in Shape
The first step, and most essential, to your property maintenance is general aesthetic maintenance. The good news is that for the most part this isn’t horribly expensive. It means keeping the lawn and landscaping neat and trimmed — any landscaping service will do the trick.
You’ll also want to be sure there aren’t broken or boarded-up windows, that there’s no graffiti, and that the house actually appears to be lived-in. This will, for the most part, keep towns and municipalities off of your back and save you those fines.
Other repairs and upgrades may be necessary to sell the house for a decent value, but in many cases banks are willing to take something of a loss here and sell the property to a flipper who will take care of that issue. In the end, it’s up to you whether you want to take this step, but many banks turn to experienced REO services experts for this part.
The right experts for real estate and bank owned properties can take care of all of the repair and maintenance work you need from your property, and ensure that you get the most out of the sale. The price you’ll pay will save you money in the long run, and will be an investment to getting the most out of your property for the least amount of hassle.
If you’re dealing with one too many bank owned properties and you need help, call First Freedom Preservation today, and let’s talk.