The practice of caring for the inside and outside of a foreclosed property, whether abandoned or occupied, is known as property preservation. You need to secure a title of a property preservation repair vendor or an REO repair vendor to do this.
Property preservation companies provide services such as repair, inspection, insurance claim administration, and upkeep to banks and asset management firms.
To know more about property preservation, read on.
The Job of Foreclosure Cleanup
Because previous owners are generally dissatisfied with their foreclosure, foreclosed properties are frequently left in a state of disarray. Property preservation firms remove anything from hazardous trash to garbage and other detritus.
If the former owners return to say that their belongings were thrown away before they had an opportunity to claim them, fear not—this isn’t a big issue. Items like this are transported to secure storage locations by property preservation businesses.
The Responsibilities of General Maintenance
Property preservation’s main goal is to preserve an empty property in good condition. That includes maintaining the roof, siding, pipelines, and everything else that could go wrong inside a building.
A property preservation company will first thoroughly evaluate the property, identifying the critical issues that must be solved. This is because a foreclosed property is frequently found to be out of code or to has major mold issues.
REO, Explained
REO, or real estate owned, is a real estate and property preservation phrase used by U.S. organizations to denote a certain type of real estate or property. These are typically bank-owned residences that banks or lenders have taken from homeowners who have defaulted on their mortgage payments.
When homeowners default on their loans or are unable to pay their mortgages, the banks or lending agencies rely on the interest earned on the loans to make a profit. To rescue their assets, the first thing homeowners will do is try to sell the houses at foreclosure auctions.
Property Preservation During Foreclosure Cases
When a mortgage loan is delinquent, including during the foreclosure process, the servicer is responsible for performing all necessary property maintenance activities to ensure that the property’s condition and appearance are maintained.
In order to comply with the Property Preservation Matrix and Reference Guide, the servicer must take whatever steps are necessary to protect the property’s value. This involves ensuring that no obvious violations of applicable law are occurring on the property and that the property is secured from vandals and the elements.
When a mortgage loan is delinquent, and the property is empty or abandoned, the servicer must refer to the Property Preservation Matrix and Reference Guide for any maintenance work.
The servicer must submit a request via HomeTracker when the cost of completing property preservation work exceeds the Fannie Mae allowed.
When the servicer does not have access to HomeTracker, it must follow the procedures in Requesting Fannie Mae Approval for Property Preservation and Maintenance in F-1-08, Managing Foreclosure Proceedings, for specific instructions on how to submit a request.
Conclusion
Cleaning is a one-time task, whereas maintenance takes ongoing care and attention. Because no one is personally invested in their home, an unoccupied house can quickly deteriorate. Property preservation is the solution to this dilemma since, once engaged, every reputable property preservation business maintains the property as their own.
If you need help with residential cleanup of foreclosed properties in Southeastern Indiana, Western Kentucky, and Northern-Middle Tennessee, don’t hesitate to call JunkPro.
We are a full-service REO property preservation company working closely with real estate professionals. Contact us today for efficient property preservation!