REO – Secure the Property

When a REO property is assigned to The REO Team, in Hemet CA and The REO Team has determined that the REO property is vacant it must be immediately secured to prevent unauthorized entry and trespassing by either the former occupant or anyone else who may want to occupy the property, for any reason.

Step 1: Rekey All Exterior Doors

It is important that all doors are re-keyed. Depending on the Bank or Asset Manager, we may be instructed to use a certain key code. If not, it is best to have your own unique code for all of your assigned REO properties; this will enable easy entrance by authorized personnel without accessing the lockbox for each property.

By all doors, I am referring to the front door, a security door if they have one, the garage door (even if detached) leading to the outside.

If there are sliders, it is imperative to make sure that they are locked and cannot be accessed from the outside. It is always best to leave a stick of some sort that would prevent them from being slid open if there is not any other sort of internal locking mechanism (like a pin).

Step 2: Post No Trespassing Signs and Visitor Log

At the REO Team in Hemet, we have a package our contractor carries with a “No Trespassing” sign that gets taped in the front window. It has a point of emergency contact, if we are needed for any reason.

We will also post an Entry Log that will be taped to the kitchen counter. Anytime our contractor or one of our agents is in the property, for any reason, they are required to sign in. If they note any unreported issues with the property, they will use a “Property Condition Notice” that will be placed in the draw, directly below the log in sheet (which is part of our contractors’ package).

Step 3: Unplug Garage Door Opener

It is important that not only is the garage door opener be unplugged but that the door is secured so that it cannot be opened from the outside. Many newer garage doors will have a latch that can be slid closed. Otherwise, it is important that a stick of some sort be positioned to stop the door mechanism from being opened, without first removing the stick.

Step 4: Install Lock Box

Again, some of our clients will insist that a certain lock-box combo is set so that their own representatives can visit the property at any time (we always have to be prepared for unannounced inspections). For properties that the clients do not have a specific lockbox combo they want on all of their REO properties will be set to a code specific to The REO Team, for easier management.

Lock boxes should always be installed on the front door of an REO property. Never put on the water pipe or elsewhere that would require a buyers agent to search out and find (or not find) the lockbox.

Step 5: Install the Sign

The sale sign with the appropriate custom sign rider (we use both a call capture and text message system) is installed on the property. We also always make sure there is a flyer box on each sign – which will be filled within 24 hours.

Step 6: Assess the Property

This is a critical step. We need an initial assessment of the property. Are there any hazardous conditions that must be dealt with immediately? Are there broken windows that need immediate boarding up?

All urgent situations are promptly called into the Admin staff at The REO team, for authorization to correct, which may or many not be granted by the staff. If need be, our trained Admin staff will make appropriate contact with the Asset Manager for this property and share the urgency for authorization to proceed.

In addition, we want the first eyes on the property to provide The REO Team with an overall assessment of the property. What issues will need to be taken care of before the property can be sold. Our contractor will document everything using our internal assessment form as well as digital photographs.

Step 7: Introduce Ourselves to the Neighborhood

We have just started with a new Community Outreach program that we believe will have a major positive impact on our REO Real Estate business.

We will prepare a special flyer, just for the neighborhood that we will distribute by walking the neighborhood and introducing ourselves. The flyer will have the basic information on the REO property as well as our contact information.

What separates this from everything else they have seen is that it offers neighborhood watch tips and asks for their cooperation. We pledge to take good care of the property and help keep their neighborhood looking good, if they will do their part and report any suspicious activity.

The next step is for us to organize a Neighborhood Watch Meeting, by inviting the local law enforcement to send a representative and invite the neighborhood to an open house at the REO Property. This will give everyone the opportunity to preview the home (never know who knows someone who wants to move into the neighborhood) and interact as a community – on our turf.

Again, this final step is a plan in the planning process but one that I feel will have a significant positive impact for the REO property which will keep our clients happy, for the neighborhood which will keep the neighbors happy, and for the bottom line of The REO Team.

In my next article in this series, I will be talking about the Initial Maintenance that we will be required to do, so that we can get the property ready for sale.

Blessings to all who read,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Servicing THE REO Needs of Asset Managers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above website or phone number.