Foreclosure Clean Up

Foreclosure Inventory 30 Times That of Sales

As of the end of February 2011, foreclosure inventory levels stood at more than thirty times that of monthly foreclosure sales volume. That is mind boggling! This means a great number of houses are sitting, sitting, sitting, and are in need of maintenance and foreclosure clean-up services.

According to LPS, this industry trend is expected to continue for quite some time. Lender Processing Services, and other real estate and mortgage industry professionals and gurus, believe the backlog of foreclosures will likely become "REO" properties (in essence, properties owned by banks and mortgage companies where no mortgage exists and no income is being produced). As a foreclosure clean-up company, or a real estate contracting service, these often abandoned and vacant homes in foreclosure or pre-foreclosure states can mean more contracts for your company.

Evaluate your property preservation registration efforts and plan to beef it up several notches. The list of larger mortgage field services, REO and property preservation companies managing properties in default is huge.

Have you signed up with several of these larger entities so you can get on their vendor lists of foreclosure clean up, lawn maintenance, painting, locksmith, inspection, repair and window boarding companies? Remember, business is a numbers game; the more property preservation companies to which you reach out, the more money you'll bring in to your foreclosure clean-up business and the healthier your bottom line will be. (You cannot stop at signing up with one or two companies. Plan to reach out to at least five or 10 per week.)

The average U.S. loan in foreclosure right now has been delinquent for a record 537 days. A full 30 percent of loans in foreclosure have not made a payment in over two years. That's even more business slated to hit the market in the coming months.

Many mortgage companies and banks quite simply have their hands tied fighting robo-signing lawsuits. They are embattled with government in effort to reach settlement agreements for perceived (and many solidified) wrongdoings. Once settlement agreements are reached and robo-signing lawsuits settle down, the flood gates will open even more with formal foreclosure filings.

Foreclosure clean up is an evergreen business. We're at the beginning. Are you ready? Plan to get organized, licensed and insured, and start reaching out to property preservation companies that often handle hundreds of homes at one time. They won't know you're out there unless you sign up with them.

Much success to you in your foreclosure cleaning business!

Cassandra Black, Author, How to Start a Foreclosure Cleanup Business Blog: FREE Articles/Advice and the Line of How to Start a Foreclosure Cleanup Business Products and CEO of Foreclosure Cleanup, LLC, Atlanta.

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Free Foreclosure Listings

Foreclosures Homes Cleanup Company

By Joseph B. Smith

Foreclosures homes offer a rare opportunity for people looking for money-making activities with enough funds to launch a small business operation. A foreclosures cleanup service can start very small with just a few houses to tend and the most basic cleaning services. But it can grow into a lucrative business where your clientele can be the banks and mortgage houses and the services you offer cover a wide range of cleaning up

While the cleaning service has been around for quite a long time now there are few businesses that cater to the cleanup of foreclosures homes. This is a business model any enterprising person can build from the ground up. But like any other businesses one should be prepared to go through the process of acquiring permits and licenses and registering their company. Before even doing this one has to have a business plan.

Some research may be in order on the type of services these properties require. It is usually not a lot for the homes will be empty, but there might be some considerations in terms of maintaining the home through various types of weather. The business owner would also have to decide whether to provide full service including gardening or pool cleaning or just concentrate on cleaning the interior of the home. They may even incorporate some minor repairs and painting jobs into the package.

Starting Small

Once you have established your business you can start with the foreclosures in your neighborhood. Find out who the property managers are and present your business proposal. Make sure your pricing is competitive by comparing the fees charged by your competitors and coming up with the best price you can offer. You can look into the possibility of tying up with a network of contractors or carpenters if you wish to offer some basic repair services.

You will know you have made it if you score a number of clients for which you do cleaning in a fairly regular basis. Remember that your service can be offered the whole year round and there are not many limitations to your operations. You can start with only a handful of cleaning materials and grow your business steadily servicing a good number of foreclosures homes.

Joseph B. Smith has been educating buyers on the finer points of foreclosures homes at ForeclosureConnections.com for over five years. Contact Joseph B. Smith through ForeclosureConnections.com if you need help finding information about foreclosures homes.

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