Foreclosures must be maintained until they sell.
After a house is foreclosed, the servicer handling the management and sale of the house as delegated by the foreclosing bank lists it with a real estate brokerage. Unlike other listings that are maintained and managed by the seller, a foreclosure listing agent must manage the day-to-day care of the house until it sells. The listing brokerage must pay for all services, and the servicer reimburses the brokerage. The work of managing a foreclosure listing can become challenging if you don't maintain a schedule and follow procedures, but as long as you act promptly and work with reliable subcontractors, it's a worthwhile endeavor.
Instructions
1. Hire a locksmith to change the locks. You should receive the the new keys and keep them at your brokerage, except for one set, which you will put in the lockbox to hang on the front door.
2. Go to the home to install the lockbox and to inspect the premises inside and out to ascertain how much work needs to be done and to take photos for the servicer.
3. Get permission from the servicer to take bids and order work. Some servicers, such as the National Property Disposition Center and First Preston, will require you to use sub-contractors they have previously approved. Most servicers will want you to ask for permission every time work is to be done if the dollar amount exceeds a designated limit. Any regularly scheduled work, such as lawn care, under the limit will be approved once for the length of the listing and you need not get special permission after that.
4. Hire a trash-out service to remove all debris from the house and land after receiving an approved bid. Afterward, inspect the property promptly before paying the bill.
5. Order electricity and water service in your name or the name of your brokerage, depending on your broker's policy. Shut it back off as soon as the necessary work is complete.
6. Have the building winterized after receiving an approved bid if it's located in an area where there's any danger of freezing weather, which could cause the pipes to burst. If plumbing repairs are necessary, order the winterization after the repairs are finished.
7. Hire a lawn service to maintain the lawn on a regular basis after receiving an approved bid. Contract for an appropriate, regular interval, such as weekly or biweekly mowing. Drive by the house at least once a month to make sure the work is being done.
8. Hire necessary repair services, such as plumbers, electricians and roofers, if you're approved to do so, to fix items that need repair. The servicer will want to approve bids and do any work that's necessary to make the property eligible for financing, but will not want to make improvements and may not replace missing kitchen cabinets or appliances. Inspect the premises afterward to ensure that the work was done and that the items in question work properly.
9. Hire a cleaning and painting service after all the other work has been completed.
10. Hire snow-removal services on an as-needed basis for the winter months. Drive by the property after a heavy snowfall to ensure that the work was done.
11. Bill the servicer once a month for reimbursement of services. Use the form the servicer provides and include receipts. You will not be reimbursed for work for which you do not have receipts, and you may not be paid in a timely fashion for work for which you do not submit timely bills.
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