What is REO property preservation?

Real estate owned (REO) properties are those owned by a lender that could not be sold at a foreclosure auction and therefore need some changes or improvements before they can be turned into assets. REO property preservation encompasses caring for the property—such as through lawn maintenance, helping preserve the building, repairing damaged sections, and so on—while also searching for buyers and helping the lender sell the property. Outside contractors do most REO property preservation on behalf of a bank or other lending institution. The majority of preserved properties are empty and only visited for upkeep, but property preservers may occasionally use them as a residence if the property needs significant work.