Foreclosed Residential

Project Outline

SREA was engaged by a regional financial institution to assess and manage nine (9) residential properties in the City of Chester, Pennsylvania after the borrower defaulted on its loan obligations and ownership was transferred through the foreclosure process.  Given the physical condition of the residences and the surrounding environment, it was imperative to commence due diligence immediately to confirm occupancy status, prevent vandalism, preserve the value of the properties and avoid further deterioration.

Services Provided

  • Notified residents of a transfer of ownership and informed residents to re-direct rent payments
  • Confirmed occupancy status and negotiated lease agreements with residents
  • Secured and winterized abandoned properties
  • Corrected code compliance violations
  • Changed locks to prevent previous owners/residents from accessing properties
  • Engaged local contractors to address repair and maintenance issues
  • Collected and recorded all rental payments
  • Orchestrated the bulk sale of the properties to achieve optimal value

How SREA Added Value

During the initial three (3) weeks of the management engagement, SREA stabilized the properties by entering into lease agreements with current residents, addressing critical repair and maintenance issues and securing abandoned properties.  Highlights of the assignment included:

  • Establishing contact with residents that felt neglected due to absentee ownership
  • Limiting the client’s exposure to legal action through pro-active oversight of the properties
  • Obtaining several purchase offers by leveraging relationships with targeted buyers
  • Achieving proceeds from a portfolio sale of properties located in an extremely challenged market