With online listing, vacancies, a flush of foreclosed properties and a sour economy, REO assets have become a hotbed for criminal activity. Everything from prostitution to copper stripping has been reported in areas with high foreclosure rates. Once a property becomes vacant, it can easily fall prey to criminal infiltration and become a real liability for an entire community.
No one wants to live in a neighborhood where a vacant property is being used to sell drugs or is constantly being burglarized for appliances, and other goods. It makes an entire neighborhood or community feel unsafe and, in all honesty, once criminals move into an area it does become unsafe.
Local law enforcement can only do so much. Once they hear of a problem they usually increase patrols for the area, but that is often the extent of solutions they can lend to the problem. It takes neighbors reporting to the police when criminal activity is happening to get actual perpetrators apprehended.
For REO Agents the problem is quite serious. Not only are agents under increased pressure to sell REO assets in areas with high criminal activity, but they’ve also got to balance the rest of their assets as well.There are some solutions to these vexing issues: be sure to hire efficient, reliable, honest vendors that you are confident will finish the work on schedule and keep the property secure while they work.
Another way to dispose REO assets more effectively is to do regular inspections. It’s already a requirement to conduct regular inspections of any REO property, but creatively finding ways to increase those inspections in a cost effective manner can do wonders. Assign employees who live in the area to do a quick inspection, engage the neighborhood watch in the area, and even work with field inspection companies to make sure your assets are safe.
It is also important to use effective workflow management software in order to stay organized, stay on top of what is going on with all your properties and to increase the chance of keeping your assets safe.
A final solution in selling REO assets in markets with high criminal activity is by looking into moving your marketing, sales, offers and listings online. It helps the process move faster.
Unfortunately, there is no easy answer. It takes the combined efforts of local law enforcement and neighboring residents to thwart the problem of criminal activity in REO properties. However, with vigilance and awareness, the criminals can be kept at bay resulting in safe REO properties and safe neighborhoods.
