Real estate tech company preREO has launched a new platform that allows real estate investors to search and bid for distressed mortgages secured by vacant properties.
Through the platform, community investors can access vacant properties (typically a single-family home or condo) with delinquent first mortgages. It also connects them with lenders and with experts that are familiar with the preREO process for more efficient maintenance and improvement of the properties.
Not only do these properties incur a significant loss for lenders, but they also leave local communities with an array of abandoned and deteriorating homes.
preREO said that lenders are willing to give investors a ‘sizable’ discount – mitigating their losses and increasing potential returns for investors. preREO also enables investors to use receivers appointed by local courts to repair and rent the property during the foreclosure process.
“preREO is a solution for lenders who are ill-equipped to maintain these homes from afar,” said preREO CEO Jorge Newbery. “We are delighted that, for the first time, community investors can use their local advantage to take control of these properties during the foreclosure process. preREO is a step-by-step program that can help solve the nationwide vacant home problem for lenders, communities and investors.”