As many of you know, I sell foreclosures.
About a month or so ago, I was sent an email to watch out for squatters in the properties I had. This was an email that went out to all agents, across the country, who represent the properties managed by a particular lender.
Apparently it is quite an issue in some parts of the country.
I have not had any in mine, but I did do an interior on another agent's REO property a couple of weeks ago. I had been given the assignment about 3 weeks prior and expected the property to be vacant. When I called the agent to get permission to go in, she told me there were 2 smaller buildings on the property besides the main house....both had squatters in them. She had had the sheriff's officers out there twice but the property was not yet secure. I refused to go until they were completely and positively gone. I don't get paid enough doing an interior inspection to get mugged. It took 3 weeks before the ordering company told me it was safe to go in. I then called the agent and she too, said it was now safe. She also has the sheriff's department periodically checking on the property.
With so many vacant properties, homeless people-particularly women alone with children- are seeking shelter....away from the normal shelters where there are drunks, druggies, and creepy people. This was being discussed the other day on the local talk radio station that I was listening to while in the car.
Many REO properties will have utilities on in them. I usually find an excuse not to turn them on, but technically, the utilities are to be on. This time of year, they are winterized except in areas of the country where freezing pipes are not an issue.
Vacant resale properties will have utilities on, particularly in the winter to keep the pipes from freezing. Few resale properties will winterize, because of the cost, and also a buyer purchasing a resale will want to make sure all the utilities are properly functioning.
An REO property(foreclosure) is sold "as is-where is", no exceptions. A resale property(owner occupant or non-occupant) is usually sold with a property condition disclosure report and a home inspection is done by the potential buyer. An REO can have a home inspection done on it, but the lender will not fix the issues found on the report, and at least in my area, will not come off the price. The only one I have had come off the price, is when the heat pump was stolen after it was under contract to purchase. The lender reduced the price $2500 based on 3 estimates I got to replace the heat pump....the lender took the least one. Buyer wasn't happy, but he still purchased the property.
