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Foreclosure Cleaning Business Opportunity - 1 in 54 Homes Entered Foreclosure in 2008

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By Yuwanda Black

While the numbers in the title of this article may seem astounding, it's true according to the MSN real estate piece entitled, Foreclosures up 81% in 2008. Of course, this spells opportunity for those who clean foreclosures for a living, or those who want to start a foreclosure cleanup business.

But digging deeper, what else does this mean? And, where does this leave foreclosure clean out companies? Following is an explanation.

4 Reasons Foreclosure Cleaning Companies Will Be Profitable for Years to Come

The Worst is Yet to Come: The article goes on to state that, "Rising unemployment and sliding home prices have some experts expecting 2009 to be even worse." In other words, the worst is yet to come, and no one seems to know where the bottom is.

As President Obama criss-crosses the country selling the recently "signed into law" stimulus package, the part that concerns homeowners is not the proposed $400-$800 more it will put into their pockets - but what is going to be done with the $40-$50 billion dollars that have been allocated to stem the tide of foreclosures.

This brings up the next point, ie . . .

Foreclosure (Loan Modification) Programs are Not Working: There are a host of loan modification programs out there aimed at helping struggling homeowners stave off foreclosure. But, the numbers cited highlight the fact that very few of them are working.

And again, it's going to get worse before it gets better because guess what, it's no longer just those who got subprime mortgages who are going into foreclosure. Now, those with fixed-rate mortgages (eg, those who had good credit and got traditional mortgages) are starting to default on their home loans too.

A Credit Suisse managing director interviewed for the above-mentioned article said he expects over 8.1 million foreclosures to happen over the next four years. This means lots of business coming down the pike for foreclosure cleaning businesses.

Job Losses Compounding the Problem: Job losses are probably why even borrowers with good credit who have traditional mortgages are losing their homes. Everyone from GM to Home Depot to Starbucks is slashing jobs.

And, as the mortgage is usually the biggest expense, it also becomes the hardest payment to keep up with when a job is lost.

Again, this spells opportunity for foreclosure cleaning business owners.

It's Hard to Qualify for a Home Loan: With tons of houses already on the market, tons more are about to be added because it's harder to qualify for a mortgage now.

Even the proposed $8,000 tax credit to homebuyers that's in the stimulus bill won't help this. For, how can you get the credit if you can't qualify for a mortgage. Banks now require credit scores of 750 and 780. Just a few years ago when the market was booming, you could get 100% financing with a 580 credit score. This underscores the dramatic change the industry has undergone.

Why Cleaning Foreclosures for a Living is a Growth-Oriented Job and Business Opportunity

While things will get better - because that's the American way - cleaning foreclosures is a business opportunity that's going to boom for some time to come. And, even when the market rights itself, there will still be a need for the types of services foreclosure cleaning businesses offer.

May be reprinted with the following, in full: Learn how to start a successful business cleaning foreclosures so you never have to work for someone else again. Everything you need to know can be found at Start-a-Foreclosure-Cleanup-Business.com, ie, 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

Article Source: http://EzineArticles.com/?expert=Yuwanda_Black
http://EzineArticles.com/?Foreclosure-Cleaning-Business-Opportunity---1-in-54-Homes-Entered-Foreclosure-in-2008&id=2004804

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