1. What is an REO foreclosure?
REO (Real-Estate Owned) is what the property is called after a bank forecloses and is unable to sell the property at auction--usually because the mortgage on the property is higher than the market value of the property. They still have it on the books as an asset and will try to sell it in the future.
2. How did you first get the idea to start doing cleanup tasks at foreclosed properties?
It was an opportunity I heard about and thought it'd be easier to get started than some of the other ventures I was looking into.
3. What kind of legwork does someone need to do before they can approach a bank and start working in this field?
Much like setting up another business, it involves registering the name (or incorporating), getting liability insurance, and setting up a bank account to separate personal finances from business finances.
4. What are some of the specific job tasks that are needed for foreclosed properties?
Each house is different, but you can really think of it as anything any house might need: locks changed, grass cut, windows boarded, pool closed and boarded, and trash taken out, just to name a few.
5. Why did you decide to write your REO Guide?
When I started REO, I found a few forums and some people who would answer a question or two, but I was pretty lost because I had no idea how the industry worked or what to expect. I wrote my REO Guide so people could get an introduction to the basics and some resources for making that start easier. I also offer one on one consulting to those that need additional help getting started.