Ten Things That REO Asset Managers Hate! 5. Zombie Houses
What is a Zombie house you say? It is not a haunted house or a house full of Zombies. It is not even a house located near a cemetery. Rather, it is a house that has been abandoned by it’s owner for some reason. Often times the owner is behind on her mortgage payments or has just lost a job and has no confidence that she will be able to pay the motgage any longer and thus moves out.
These houses will naturally fall into disrepair and take on a less than desirable look to them. This is October and many people will start to dress their houses up for the Fall holiday, conquencidental, the cobwebbed, graveyard decorations resemble in a way our poor Zombie houses. All kidding aside, this is no laughing matter for the banks, as now they have an abandoned asset with no monthly payments coming in and a real threat that a squatter will show up and make themselves at home.
A good REO broker is the solution here. The banks need to send their broker out as soon as any red flags are raised. A missed payment or two should trigger the bank to alert their broker. Time is of the essence, the sooner a broker can discover a Zombie house, the better. The house can be secured and the disposition process started. If a squatter or unauthorized party takes possession of the house, the headaches for the bank really start. Now, they don’t just have a house falling into disrepair and no payments coming in, they have a person or family in the house that they have to remove.
Banks, asset managers need to rely on their broker to help them keep a bad situation from going into a nightmare scenario (pun intended). Reo brokers need to make sure they do their due diligence and really investigate the property when the bank calls on them. Working together, the Zombie house can be eradicated and a fresh new mortgage paying owner can be installed, making this story one that we can all live happily everlasting, or at least until the new owner defaults!