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Utilize An REO Property Preservation Company To Improve Property Quality

Published April 8, 2011 in Bank America Short Sales - 0 Comments

REO Property Preservation handles the task of sustaining a property owned by a {mortgage} lender or a bank. For that is what REO is, Real Estate Owned. These are the holdings which have become the bank’s property after foreclosures, when the owners cannot handle their mortgage {payments}. These properties would have failed to draw any bid during an auction (if an auction did take place) and had a market value lower than the debt owed to the banking company. Such holdings will usually be in a bad shape due to low maintenance by the owner or tenant, which is why the lenders could benefit from such services.

Since an REO 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 (even if not top) shape. This is why they take the help of REO property preservation companies. The teams usually remove debris and waste in and around the property, perform janitorial services, plank up the windows (to keep the property protected from burglary), and re-key and secure all doors. The services also include landscape gardening and improving the landscape or outdoors of the holding to a decent condition. They also do the preparation for winter (winterization) if necessary.

Property preservation becomes challenging if the property is occupied. For that reason, many companies also offer eviction as part of their property preservation services. These are of course the initial services. Property preservation companies also provide persistent and periodic services such as inspection, maintenance, and at times, even cleansing.

The firms also prepare the properties before sale. This preparation may include lawn trimming, cleansing the home inside out, and scrutinizing and repairing plumbing, HVAC, electrical furnishing etc. Usually banks prefer to sell these homes in good condition; but if they want to do renovate or remodelling to increase the house’s equity or to keep a deal from falling through, the preservation companies may also offer these property preservation services.

In recent times, {maybe} perhaps due to the economic difficulties, the number of foreclosures and REO properties has been increasing. This has brought an increase in the demand for REO property preservation, as banking companies and lenders end up with with more and more non-performing assets that need to be developed, to be of any value in real estate. When handled well, the preservation services often ameliorate the REO property’s standing in the {real estate} market.

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