So you’re a lender — bank, credit union or mortgage company — who has just been saddled with a foreclosure, abandoned or other property, and now you don’t know what to do. Of course, you don’t want to keep it. You’re in the business of lending money so people can buy properties, not manage properties yourself.
Unfortunately, these properties can be a drain on your finances and are often left in terrible condition. You probably don’t keep contractors like carpenters and electricians on staff or retainer. So, what do you do to get it off your rolls quickly? Let’s check out what to do with an REO property so that you can avoid your foreclosure turning into a financial drain.
What to Do With an REO Property
Unless you’re looking to get into the property management or real estate investment game, what to do with an REO property is to get it off the books. You need to turn what has become a financial sink into a profit, or at least try to break even with it.
Unfortunately, that means dealing with existing tenants (and possibly squatters), cleaning up the property, performing any necessary repairs and getting it sold fast. Finding the right help to get all these things done can be a challenge.
Dealing With Tenants and Squatters
Tenant management services can be very complex, and very few holders of REO properties have the resources to handle these issues. Sending an eviction notice might seem like a simple prospect, but actually enforcing that notice can be difficult. In addition, if existing tenants have a lease that they have not violated, the situation can get very complex indeed.
You need a service that has all of the resources to handle tenants in your building, to manage their leases, to serve and enforce eviction notices and to get rid of squatters effectively. The right REO services experts can take care of that for you, while keeping you informed every step of the way.
Upkeep, Upgrades and Repairs
Selling a home in this day and age almost always requires repairs, upkeep and upgrades. This is especially true if you plan to try to sell it quickly at a good price. Again, REO service companies have all the contractors on hand to take care of these issues. They can take care of structural damage issues. They can upgrade kitchens, bathrooms and other interior spaces. They can replace fixtures and make the house look ultra-modern, so it sells at a great value.
Selling the Property Fast
Not only does an REO company help you deal with upgrades and repairs, and get rid of unwelcome tenants (or manage those legally present), they can get your property sold fast. They know how to create outstanding curb appeal and how to landscape, and they have contacts with buyers, real estate companies and investors.
If you’re curious about what to do with an REO property and you need help taking the next step, First Freedom Preservation can help. Check out our services, and give us a call for more information today.