Not all mortgage companies take care of their REO properties, but many do, and some of those homes need repairs as well as regular maintenance. When I was the local broker for Fannie Mae one of the primary tasks I performed was to find the vendors, submit the bids, award the jobs, and make sure that work was done.

Almost all of my Fannie listings got a thorough scrubbing and new paint inside. Most had carpets shampooed, and some had to have new flooring. When winter approached, the pipes had to be drained and we had to arrange to keep enough heat in the house to keep things from becoming damp and mouldy. Some required new lighting fixtures, new plumbing fixtures, and a variety of other repairs.

People losing their homes can sometimes behave in uncharacteristic ways. I’ll never forget walking into one repo and finding the kitchen sink missing – along with the furnace, the water pressure tank, the bathroom vanity, and even all the light switch covers and ceiling fixtures. They’d also thrown rocks down the well. That one kept me busy with repairs for quite a while. (That’s the drawback to being the listing broker.)

Outside there was always more work – lawns had to be kept watered and mowed in summer and walks shoveled in winter. One of the items on their sheet that didn’t apply here, but might apply in your city, was pool maintenance.

So you see, if you provide any of those services, you should be marketing to the brokers in your town who handle repossessions. Call a few agencies and ask around – you should be able to find out who to contact.

Remember, you don’t have to be a professional to bid on some of these jobs. Cleaning and lawn mowing, for instance. You only need to behave in a professional manner.

Be prepared to give a written bid and to stand behind it. Also be prepared to wait 30 days for payment. And be sure that when you meet with the broker to ask to be put on the list, you look and act like a professional.

About the bids – Fannie Mae and some of the others have policies that call for 1, 2, or 3 bids depending upon the cost of the project. So for cleaning you might not have competition, but if you’re painting the interior there could be 2 others bidding against you.

Don’t feel bad about profiting from someone else’s troubles – someone is going to do those jobs, and if you want extra income it might as well be you.

The reporter quoted one man who said that nearly every other home on his street had a for sale sign, and some real estate brokers are actively advertising that they have dozens of foreclosure properties for sale at bargain prices.

Some say this is definitely a buyer’s market. Not being involved in real estate sales any more, I don’t know if that’s actually true yet.

When I was the local broker for Fannie Mae and a couple of mortgage companies, the REO properties were always listed higher than my market analysis indicated – then came down in increments over the following months until they really were bargains. I’ll never forget Fannie turning down a good offer early on and then 12 months later selling the house for quite a bit less than that first offer. Meanwhile, they were paying for maintenance. So silly.

Anyway, back to my question. Where have all the people gone?

If thousands of families have lost their homes and those homes are now standing vacant, where are those families living? Are rental units suddenly full to overflowing? Are families moving in with friends and other family members while they try to regroup after this blow? Are some of them literally out in the street?

I hope not, especially here in our climate where the high today promises to be about 45 degrees.

I think I join with millions of other Americans when I wish our government would help the homeowners instead of the mortgage companies. I realize all were at fault – people should have read the fine print and should not have signed mortgages they had no hope of paying. But so many of the mortgage company tactics were deceptive that I really believe many did not realize that their payment would double or even triple after the first 3 or 4 years.

Their marketing was superb – but dishonest.

I trust that none who read my blogs or articles would engage in such trickery in their marketing efforts.

And as for letting company executives walk away with millions as a part of the bail out – boy do I wish I had the power to put a stop to that! They’re being rewarded for making bad decisions based on greed.

Do you agree? Disagree? Have some thoughts on the subject? Know where the people have gone?

Post your comments!

Back soon,

Marte

That said, there’s no reason not to take advantage of the opportunity it presents to Realtors and a host of other service providers who deal with real estate in some capacity.

First, the real estate agents: If you can become expert at finding out the unknown facts about these homes, you can become a valuable resource for buyers – and you can advertise your expertise. Keep in mind that many agents are too lazy to dig until they learn the things buyers want to know. They’re used to sellers providing information, and that just won’t happen with REO houses. When you provide the extra service, you’ll stand out from the crowd.

Then – the others. Another sad fact is that many repossessed homes are in terrible condition. They’re either dirty or damaged or both. Some homeowners, upon realizing that they’ve lost their homes, go out of their way to leave everything in top condition — others go out of their way to destroy things. I’ve even listed repo houses where the kitchen sink had been removed and rocks thrown down the well.

That offers opportunity for a whole host of other professionals. People like:

• Cleaning people
• Plumbers
• Electricians
• Painters
• Landscapers
• Carpenters
• and sometimes, even well drillers and septic installers.

The company listing their REO’s may not be willing to pay for repairs, but often the new purchasers will want help with some or all of the cleaning and repairs.

If you’re a Realtor, begin compiling a list of competent service professionals. If you’re one of those professionals, make up a little brochure outlining your services and give copies to all the real estate people in your vicinity.

You’ll be helping the new purchasers and helping yourself at the same time.

If you’d like to know more ways to market your services, get a copy of my report: How to Attract Clients to your Service Business. At $7, if you follow its advice it will pay for itself hundreds of times over. And of course, if you need brochure or ad copy that jumps up and grabs customers, write Marte Cliff, Copywriter. That’s me, and writing is what I do.

Until next time, I wish you success.

Marte