If you are just starting out and looking for information on becoming a property preservation vendor for REO agents, you will want to make sure you have all the credentials and some work orders under your belt first. Many asset management companies will only work with established firms that have a proven track record for professional work and quick turn around for the many banked owned homes on the market.
You can also get a list of REO agents as well as asset managers on the web for free, beware of those websites that charge you a membership fee or want you to pay for the information. Once you get the contact information online, you should contact the companies directly either through email or mailing correspondence.
The FDIC will take over the assets of bank institutions that have defaulted properties or real estate assets and then are managed by assuming or acquiring financial institutions, so if you want to get cleaning jobs from them you will need to understand that these residential and commercial foreclosures are distributed to larger national companies, which means you would most likely be a subcontractor. It is also advisable to network with home improvement contractors for help on each project.
Real estate owned or REO is property owned by a lender, typically a bank, after an sale at a foreclosure auction where the opening bid starts from the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. As soon as the bank repossesses the property, it is listed as a non-performing asset.
When the borrower misses mortgage payments property goes into a distressed status where the bank will determine the amount of equity by obtaining a Broker Price Opinion (BPO) or an appraisal. This information will allow the bank to have a short sale or to go through the foreclosure process.
Once the property is classified as REO, the bank can sell the property or obtain the service of an REO Asset Manager, Then when the bank removes the liens it can be sold at auctions or direct marketing through a real estate broker. Asset Managers will also try to contact REO realtors that specialize in certain zip code to help sell the bank owned properties. Many larger banks have REO asset management departments that will field bids and offers.
The current home foreclosure crisis is on the rise due to the many bank failures, so as a small to medium sized foreclosure clean out company you will need to follow the right procedures in getting bids on contracts in your city. Your business will be providing boarding up windows, repairing wooden floors, painting exteriors, lawn care and debris removal maintenance, and this will keep neighborhoods from attracting squatters and vandalism.
As you are probably aware REO asset management companies facilitate the liquidation of real estate that is typically returned to the mortgage company through the foreclosure process and in turn to recoup their losses, they sell these properties.
Here is a list of banks and national companies that hire for cleaning contracts:
REO Agent Directory
http://www.google.com/Top/Business/Real_Estate/Agents_and_Agencies/
Property Preservation Companies
http://www.google.com/Top/Business/Financial_Services/Field_Service_Companies/
REO Asset Management List
http://www.dmoz.org/Business/Financial_Services/Field_Service_Companies/
Tags: Bank, Cleanup, Contact, Find, Foreclosure, Free, Lists, Preservation, property