Copyright (c) 2009 Frank Patrick
How Foreclosure Contractors Make the Difference in the REO Marketplace
Knowledgeable real estate experts know that foreclosed properties are taking a long time to finally making their way back on the market � to transition to REO (Real Estate Owned) listings. Back in February,
RealtyTrac.com estimated that up to a shocking 70% of foreclosures still weren�t on the MLS yet.
One large reason for the delay? Because of the explosion of the number of foreclosures in recent months, banks can�t keep up with processing the individual properties. That means they sit untended, unsecured and unoccupied for longer periods of time � leaving these homes open to vandalism, threat and damage.
That means that, by the time property preservation companies are finally called in, there�s more much more substantial rehab work to be done on these homes. The lawn is usually a disaster, the plumbing can need major repairs and there is probably rotting food in the refrigerator.
Ideally, the �trash-out� of foreclosures should be accomplished as soon as possible to ensure these properties don�t deteriorate to a point where the house becomes unsafe and they�re unsuitable for market. The recent foreclosure moratoriums made that process difficult for many properties � and now, that the moratoriums are over, there is a huge backlog of foreclosures to process.
In cities like Orlando, Florida and Phoenix, Arizona, foreclosures are huge � and so is the opportunity for contractors entering the property preservation arena.
One couple who recently got into the property preservation field, Matt and Carrie Singleton, moved to Las Vegas to take advantage of the huge REO market there � and, after less than six months of operating a foreclosure clean-out business there, found themselves making $89,000 in revenues in one month. And this was without having any prior contacts or working relationships in the city before relocating there.
To get a real sense of what�s involved in cleaning out a foreclosure, a video produced by a Southern California TV station posted at
http://rocktrueblood.blogspot.com/2009/02/trash-out-of-foreclosed-homes.html shows the process well. It�s amazing to watch this video and see just what people leave behind before they exit a home. You�ll hear about an urn with a relative�s ashes that was found by the clean out crew, among other very personal items � children�s toys, photo albums, etc. You�ll also see the incredible array of items of value left in the home � computers, high-priced appliances, and furniture.
With foreclosure sales beginning to boom, becoming a property preservation contractor is clearly a good business move in an uncertain economic time. And for banks, lenders, asset managers and REO agents, using a dependable, trustworthy and properly-trained contractor is the quick way to restore �curb appeal� to foreclosures and prepare them for the market.
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Frank Patrick is the founder of national property preservation franchise, REO RESQ�, which offers skilled property preservation specialists hand-selected for their experience working with foreclosure properties. The Franchisees are all Owner-Operated companies and are easily located on the REO RESQ� website at
http://www.REORESQ.com by a simple zip code search.
