Reo Property Preservation

What is REO Property Preservation?

REO property maintenance is a service that is needed by a lender or bank. Most real estate owned homes usually have repossessed by the bank after an unsuccessful bid at a foreclosure auction. The banks goal was to receive money for the outstanding loan amount. Interestingly the amount owed on the home is higher than the properties market value. Now the property is considered an non-performing asset and is listed on the MLS multiple listing service which is a database used by listing brokers.
Many of these distressed homes need maintenance and repairs, due to lack of upkeep by the homeowner. Once the property is vacant property preservation companies will change the locks and re-secure the structure, remove debris, lawn care from mowing to trimming hedges. REO property maintenance servicers are also responsible for winterization of the plumbing at the property to prevent freeze damage of banked owned real estate.
Upkeep of REO properties in California is necessary due to the high rise of vacant and abandoned homes, the benefits of property preservation is that it will provide securing, protecting and preparing unmarketable properties for resale. Lenders find it cost-effective to hire REO property preservation companies to handle the growing load which will require hiring of contractors who are trained and knowledgeable of the HUD guidelines and regulations.
Why Banks use Asset Managers to sell REO's
When lenders need to sell Real Estate Owned properties they utilize REO Asset Management, most banked owned properties are sold by zip code to REO listing agents and Real Estate Brokers who then sell them to real estate investors who want to flip the homes for a profit.
A real estate asset manager has the job of selling properties and specializes in multiple real estate holdings that have been purchased as investment properties. Banks use real estate assessment managers to manage bank REO properties that are categorized as a non-performing asset. Many larger banks have asset management departments that field bids and offers, oversee upkeep, and handle sales.
REO properties for sale

REO Property Preservation Companies

For a list of property preservation companies in your state you can get a free listing at the google directory or dmoz field service business list on the web.
REO Property Preservation Services
Most companies who provide services to repos have to follow specific guidelines set out by the U.S. Department of Housing and Urban Development. Mortgage field services can be pretty broad depending on how big the company is, local companies may not offer as much as national companies would, as in the case of offering BPO's, trash outs or snow removal.
Some of the types of services you can expect include:
  • Evictions
  • Securing Services Lock Smith, Boarding, De-boarding Re-glazing
  • Cleaning Detail Cleaning, Pre-Sale Cleaning
  • Carpet Cleaning
  • Wet and Dry Winterization, De-Winterizations
  • Debris Removal Per HUD Guidelines
  • Water, Utilities
  • Yard Maintenance & Snow Removal
  • Abandon Vehicle Removal
  • Appliance Removal
  • HVAC Inspections
  • Certified Plumbing, Electrical
  • Rehab Interior & Exterior
  • Painting, Drywall Repair, Replacement
  • Concrete
  • Flooring Cleaning Carpet, vinyl, Hardwood
  • Roofing Certs and Inspections or Replacements
  • Mold Abatement and Remediating
  • Demolition as well as Home Renovations
REO Property Preservation Pricing
To get accurate information on HUD pricing guidelines and FHA specifications for property preservation by each state you will need to go to http://www.hud.gov/offices/cpo/grantees/cstprice.cfm or http://cubicyard.us/pnews/property-preservation-hud-guidelines/hud-pricing-guidelines/208/

REO Property Preservation Jobs

Get information on property preservation jobs on national job boards such as Monster.com, Indeed.com, Aerotek, armedservicesjobs, lender processing services and eBay classifieds.
  • Property Preservation Technician
What you can expect working as a Property Preservation Specialist is that you will process service requests from clients within the mortgage servicing sector to repair or maintain properties in their delinquent loan portfolios and as for the vacant assets they must be preserved and protected until sale or disposition of property by utilizing client requirements, investor guidelines and local ordinances.
Other job duties include: Validating repair scopes and supplier pricing based on photos and third party estimating software along with managing the service pipeline to ensure quality, timeliness and value. You will also reference and navigate service guidelines to ensure appropriate services are requested and performed, then review property repair scopes and validate costs via supporting photos, contractor provided documentation and third party estimating software. as well as negotiating repair cost and scope with contractors when services are outside industry standard. 
  • Property Management - Asst. Operations Manager
This position requires managing the day to day functions of Government Processing and Advanced Preservation Services. It is necessary to have experience in Mortgage Default Servicing management with an emphasis on FHA foreclosure and claims, as well as expert knowledge of default servicing requirements as established by FNMA, FHLMC, HUD and VA.
Other duties include participating in long-range planning for the Property Preservation department, developing and implementing department policies and procedures, determining the necessary staffing and recommend staffing levels, along with creating strategies to improve overall quality and productivity of the department. You will be overseeing development and implementation of resulting new programs while promoting and maintaining positive relationships with new and existing clients. Analyzing production data in comparison to contract requirements for each client to ensure profitability projections are realized. As in the case of ensuring compliance with both client contracts and investors as well as insurers requirements so that risk exposure to LPSFS is minimized, then ensure client issues are acknowledged and addressed in a timely manner.
Reource: indeed.com/Job Search

Benefits of Default Servicing Technologies

Most real estate professionals are realizing the benefits of using software solutions in the mortgage industry that deliver tested, proven enterprise technologies of the highest quality and innovation. How it works is that the software will make it possible to integrate, centralized solutions for the life of loans starting with preforeclosure analytics to asset disposition, invoicing and claims management.
Who can use these default servicing technologies are trustees, law firms for regulatory compliance for FHA, VA, billing, and event tracking. Automate default servicing referrals, streamline communications with vendor network.

Those who work in the Loss Mitigation industry can utilize the software tools to evaluate properties of a loan, document the borrower’s interview results and financials, as well as workout plans.
Also in the field of REO Management there is the ability to improve visibility and performance-based accountability to more effectively manage, market, and liquidate REO assets.

Resource: firstam.com/

Local Asset Management Companies

Terms of Use
Map

show route and directions
Simon Real Estate Group -
19188 Alamo Ln, Yorba Linda, CA 92886, USA
 [get directions]
Mortgage Lender, REO Services, Real Estate Agency is a full service residential and commercial Real Estate Company
Reo Asset Maintenance -
2220 Eastridge Ave, Riverside, CA 92507, USA
 [get directions]
Property Management Company
Mellenia Asset Management Inc -
1326 Monte Vista Ave, Upland, CA 91786, USA
 [get directions]
the largest datbases of REO homes and foreclosure listings.

Foreclosure Cleaning Pricing Guidelines

The best place to find information regarding the U.S. Department of Housing is to go to the HUD website, because they list the FHA mortgage insurance needed for mortgage lenders. The claims that are filed on the fha insured homes is processed with specific rules and regulations.
Management and marketing contractors are the ones that manage the single family properties, so as a foreclosure cleanup business owner you will want to talk with the M&M so that you will know the correct amount to charge for the various services you will be providing.
Distressed housing development programs is where HUD.gov specializes and due to the high number of properties also need to have good management.
The best way to price foreclosure clean up jobs is to know how the adjustable rate mortgages are going to be reset in the coming months. Most of the tables that list the maximum amount allowed for each task is not exactly what you can expect, since it will depend on the job as well as where you are on the list of contractors. 
Subcontractors will not make as much as the direct contact the bank has with the service provider, remember that the lender will go with the one that charges the least for the same amount of work. So to actually make a bigger profit you will need to have more work.
Property Preservation Fees
It is important to note that when it comes to your foreclosure cleaning franchise owners mainly get their jobs from realtors who are being paid by the Department of Housing and Urban Development (HUD.) so they know which way to play the bid process to win the jobs against other companies offering the same services.
The cost allowables will be measured against your actual expenses. For example when it comes to the cost of boarding, inspections, securing swimming pools, sump pumps, demolition and utilities which may not be included in the maximum cost limit per property.

Property Preservation Inspection Services

Specialty inspection and verification services


Property Preservation Inspection Services

Once this happens then a visual inspection is followed by claims and documentation.
There are five types of property inspections
  • Occupancy Inspections
  • Initial Vacant Property Inspections
  • Vacant Property Inspections
  • Voluntary Pre-Conveyance Inspections
  • Eviction Inspections
Occupancy inspections are required when a homeowner defaults on their mortgage payments, then the lender goes through the process of trying to contact the mortgagor by phone or correspondence to determine if the property is vacant or abandoned if the property is occupied a visual inspection will determine if the home has a for sale sign as well if the doors and windows are secured and the lawn is maintained.


 

Direct contact by telephone or Occupancy Inspection.

On the other hand if the home is vacant and abandoned, it is important to document if there is property damage, and then go through the process to initiate preservation to secure the property beginning with an Initial Inspection.
In the case that there is no monetary default, a visual inspection will determine if there has been a written notice of code violation, municipal lien, condemnation or demolition, disconnection of utilities or cancellation of homeowner insurance.
The home inspectors job is to verify occupancy from the following methods:
What should the occupancy Inspection report include:
The following should be considered such as the date of the occupancy inspection, the Identity of the inspector, how occupancy was determined, the identity and status of occupants, the valid telephone number for the occupant, documentation of house locked or secured, obtain broker name or contact number if there is a (For Sale sign) on the property, is the grass mowed or shrubs trimmed, describe any exterior damage such as broken glass, boarded up doors or windows as well as notation of personal property or debris left behind.
In the case that occupancy is not able to be determined some of the ways of checking would be to check utility meters, contacting the listing broker, observing general maintenance or speaking to neighbors.
Since a drive-by inspection may not be enough to determine occupancy an inspection report must be filled out.
reo property preservation companies
reo property preservation companies

Property Preservation Jobs

Field Service companies hire field service representatives to do property inspection jobs with most of the work in property preservation and inspections.The record number of foreclosures on the market has some housing experts cashing in on the income potential by starting their own property preservation company. If you are looking at the current real estate crisis, and you are not interested in a start-up you can always work for an established national company who is hiring field inspectors all you will need is proper training.
National Companies Hiring:
  • Safeguard Properties All independent contractors must fill out a vendor application.
  • Safeguard is a turn-key resource for all aspects of property management, for Property Inspections, Property Preservation, Real Estate Owned (REO) Services, Property Valuations, Insurance Loss Inspections, High Risk/Code Enforcement, Vacant Property Registration, Title Services, Evictions and Hazard Claims Administration
http://www.safeguardproperties.com/Careers/Employment_Opportunities.aspx
  • First American Default Management: on-site property inspections and property preservation and maintenance services. First American National Default Title Services (NDTS) division offers the mortgage servicing industry various default-related loan servicing activities.
http://www.firstam.com/news/2008/10799.html

Default Services Property Preservation

The economy has created a new set of skill set for those involved in real estate, one of them being default services, most national property preservation companies offer REO maintenance and repair to pre-foreclosures and banked owned real estate.
What are other services offered by national foreclosure preservation companies?
These custom solutions may include such things as title services such as title insurance and property reports, appraisal services and valuation, settlement and closing services, property management and on-site property preservation.
It may be more cost effective for the lender if they can work with one company that can provide all their real estate servicing needs.
Where can I find a list of national property preservation service companies?
The best way to get a list of companies is to go on the DMOZ Open Directory for Business, Financial Services, Field Service Companies:

Mortgage Contracting Services

Most national property preservation and inspection companies provide mortgage field services which include property inspections, property preservation, REO property maintenance, as well as valuation services.
Many national real estate asset management companies offer home improvement options to help reduce the time it will take for a property to go through resale. These types of jobs are done with before and after photos that can take one day up to a week to complete depending on the turn around time and size of the property.
Property and REO Maintenance Services
  • Locksmith - fixing or replacing locks on doors
  • Repair and remolding - fixing damages and structural changes
  • Lawn Service - mowing grass and maintaining landscapes
  • Lockout and Evictions - include filings, re-keying and property recovery
  • Board and Securing - boarding up of windows and securing of doors
  • Trashout and Debris Removal - cleaning, removal of items left behind
  • Winterization and Plumbing - repair of pipes and frozen plumbing issues
  • Swimming and Pool Maintenance - providing safety and cleaning unused pools
  • Janitorial Services - home cleaning and maintenance
  • Toxic Mold Treatment - cure mold moisture problems with testing and remediation
Who can use these services ?
Mostly the people who will need the types of services that most national property preservation services provide are Asset Managers, Lenders and Real Estate Professionals who need a team of trained field servicers to take care of pre-foreclosure, vacant and REO properties.
The foreclosure preservation services include: Debris removal, Boarding windows, doors, Fire damage repairs, Interior cleaning, Lawn maintenance, Lock changes, Lock re-keying, Mold Remediation, Hazardous material removal, Pool maintenance, draining, Rehab, Roofing, Water damage repairs, as well as Appliance replacements.

National Property Preservation Companies Job Duties

For those looking for jobs they need to be acquainted with some of the job duties required by many national companies in the following areas :
  • Delinquent Vehicle Loan Inspections
  • Floor Plan Audits
  • Notice to Call Delivery
  • Merchant Site Inspections/Surveys
  • Commercial Real Estate Inspections
  • Reverse Mortgage Inspections
  • Mobile Home Vacancy Inspections
  • Occupancy Checks
  • REO QC Inspections
  • Leased Equipment Inspections
  • Collateral Inspection Reports
  • Address Verifications
  • Location Verification Inspections
  • Delinquent Credit Card Interviews
  • Credit Line Interviews

REO property preservation and maintenance services

Initial Services - such as services performed immediately upon a property becoming vacant
Recurring Services - also services performed on a regularly scheduled basis
Periodic Services - as well as services performed on an as-needed or requested basis
  • Client support capabilities
  • Bid Management System
  • Bid Review and QC Process
  • Winterization Management Program
Some of the areas that are serviced include:
Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Kansas, Kentucky, Louisiana, New York, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, West Virginia, Wyoming and Puerto Rico.
Subscribe to: Posts (Atom)