In today's challenged housing market, creating and preserving value in REO portfolios is critical. There are three ways servicers can protect their bottom lines.
First, make sure REO properties can compete successfully against traditional real estate listings. Traditional property preservation and maintenance are no longer enough. REO properties need landscaping, renovations, painting, and decorative updates—field service companies must offer those specialized services as part of their REO offerings.
Another way to services can save money is by reducing utility costs and centralizing the administrative oversight. Servicers with large volumes of REO properties are leaving money on the table by not consolidating their utility payments and taking advantage of economies of scale. Sourcing the payment and management of utilities to a company that can leverage economies of scale to negotiate lower fees, streamline payments and provide effective reporting can yield big savings for servicers.
Lastly, avoid code violations and fines. Code compliance is a major challenge for national servicers with properties in cities large and small across the country. Utilizing a comprehensive code compliance portal that allows municipalities and servicers alike to manage the entire code enforcement process reduces penalties and fines, and saves administrative time and expense. It also helps to maintain the value and integrity of properties, protects the reputation of servicers, and builds stronger relationships between the mortgage industry and communities across the country.
Field service companies need to deliver in these areas as true partners in the mortgage servicing industry.
