GATE Exam

Frank Patrick
http://www.asreos.com



The Importance of Property Preservation
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-forec
losed-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.