REO Properties are bank owned properties that need to be prepared for market. When a foreclosed properties becomes a bank owned property, your client will probably give you an Initial Services work order.
This work order may pay you a flat fee to do all of the work, they may give you an "allowable", which is the maximum you may charge, or they may break it down and pay you for each part of the job. Each client does it a little differently; make sure you read the work order carefully.
It is not unusual for REO properties to have been vacant for as many as 2-3 years. Now they need to be cleaned up and prepared to put on the market. What you do with this work order is the minimum that must be done before the properties can be put up for sale.
An Initial Services work order for REO properties may include any or all of the following, depending on the individual client:
When REO properties have reached this stage in the foreclosure process, the mortgage company contracts with local real estate brokers that specialize in selling bank owned properties. So, typically, the work order will have the name of the broker, along with his/her contact information.
It's always best to call up the broker right away and find out everything you can about the property. They can tell you how much debris is there, and what are the things they see that need special attention. This is especially helpful if you need to travel a significant distance to to the job.
Generally the Initial Services work order will also ask you for bids on some specific items, like:
This is where it can be very helpful to talk with the broker, because if he tells you that something needs to be done to make the house marketable, you can reference your discussion with him in your bid verbiage.
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