Dealing with REO properties is a hassle and a headache for the lenders who own them. There’s no doubt about that. No lender really wants to be saddled with a property on which they were forced to foreclose. There’s an important relationship between agent and broker in these properties, and the responsibilities of each can be many and complex.
It can be difficult to see where one ends and the other begins, and in truth, most REO holders don’t have the resources to handle all of the things that need to be overseen with these properties. Check out an overview of the typical agent and broker REO responsibilities, and how property preservation and inspection services are vital.
Agent and Broker REO Responsibilities
There’s a veritable laundry list of things that agents and brokers who hold REO responsibilities have to oversee and for which they are accountable. Just a few of these include property inspection and maintenance, eviction and tenant services, preservation and cleaning, utilities transfer, draining pipes and water tanks, locks, landscaping, repairs and upgrades.
They’ll have to keep up with the landscaping, ensure that the building remains in compliance with all local and state codes, and they’ll need to keep up with the property. This entails weekly (at minimum) visits, photographs, monitoring and the providing of regular updates to the bank.
Property Upgrades and Preservation
The primary responsibility of agents and brokers with REO properties is upkeep, upgrades and preservation. This involves a long list of things that need to be done. There are property condition reports to provide to the bank. There’s major repair, upgrades and maintenance work from fixing damaged plaster to performing complete kitchen remodeling.
There’s landscape maintenance, too. Many municipalities can levy fines in the tens of thousands of dollars for a property that looks rundown or contributes to urban blight. Of course, this goes to security as well. A property that looks lived-in and occupied is less likely to attract squatters, but may be more likely to attract potential burglars. It’s a delicate balancing act.
Tenant Eviction Services
There’s also what to do if the place is occupied by unauthorized residents—squatters. Evicting people from a home is perhaps far more difficult than it should be. Efforts to protect people’s right to a roof over their head have unfortunately resulted in illegal tenants being very tough to remove from a property. Few agents or brokers have the knowledge or tools to push eviction processes through.
Property Preservation and Inspection Services
The REO Agent and Broker wants nothing more than to get the home sold for as high a value as possible, as quickly as possible. In order to do this, all of the above have to be undertaken, and that’s where property preservation and inspection services come in. A professional REO services company like First Freedom Preservation has the tools and resources to get the job done.
The right property preservation and inspection services company will keep regular communications ongoing. They’ll handle eviction processes, upgrades and repairs, landscaping and more. If you’d like more information about how these services can help you, contact First Freedom Preservation today.