Tom Roeser, president of Otto Engineering, is trying to get rid repo homes that have become eye sores in some neighborhoods in Carpentersville, Illinois. He does this by purchasing homes on bank foreclosure listings, refurbishing and reselling them.

In was in February 2008 that Roeser noticed the growing number of homes on bank foreclosure listings in the east-side neighborhoods of Carpentersville. Roeser recalled seeing about 200 properties in foreclosure at the area that time.

He said that he approached members of the village board hoping to get their support for his plan to purchase distressed foreclosure properties and refurbish them. However, he failed to get the support that he needed to implement his plan.

But he pushed through with his plan to purchase and refurbish foreclosed homes and along the way, encountered some problems with what he described as arbitrary codes of the village.

Community Development Department director Cindy McCammack said that she is aware of Roeser’s concerns and she believed that he is doing a great service in helping eradicate foreclosure properties and stabilizing neighborhoods.

So far, Roeser has bought 25 foreclosed houses, with some as low as $70,000. He said that in 2007, these properties were put on sale for $170,000.

His investment includes $50,000 for renovations, $15,000 in fees and miscellaneous costs for each foreclosed home. After the renovation, the property will be re-sold for $140,000 each, according to Roeser.

The job of selling the properties refurbished by Roeser and his company goes to Russ Morehead, a realtor at Realty World Fox. He claimed that those who saw the refurbished homes like them because it is like buying a new home at a lower price.

Morehead said that one property has been sold, while another will be foreclosed and three will remain on bank foreclosure listings.

Meanwhile, Roeser said that he is purchasing and refurbishing foreclosure homes not to gain profit but to sell them as fast as he can because he believed that the faster he can sell them, the faster he can fix them.

One of the benefits of having a large volume of foreclosure properties on the market is that potential homebuyers have a range of supply to choose from.

However, realtor Hilda Jones cautioned potential homebuyers about purchasing homes on bank foreclosure listings.

She said that buyers should hire professional home inspectors to check on any damage on the property and make sure that it is not beyond repair.