REO stands for Real Estate Owned. Various lending services employ a management company for upkeep and marketing for REO corporate properties. The Lender gets these plots by way of foreclosure.
One of the most important facets of REO Asset Management is overall upkeep and safety of the property. Its essential for the management firm to keep locks changed, clean up the exterior and interior of the house, make sure that the house has suitable heating and cooling systems to avoid damage, and generally take care of on-going maintenance until the house sells again. Without this effort, the value of the property decreases, as do the chances of reselling it.
Another roll of the REO manager is helping the lender figure out the actual value of the property. There are automated systems to help with this like AVM (automated value model), but the asset management company sees, first hand, the overall condition of the property from the time it enters foreclosure until sold.
Finally the REO manager helps the lender with marketing the property and finally selling it. They provide regular reports to the client including purchase offers. When a bid gets accepted the REO management firm has to look over all documentation and oversee the final transfer of funds to the lender.
