Cleaning HUD Homes Foreclosed Properties Houses for Banks
Home Mortgage Lenders are being held accountable for not adhering to FHA Standards
Allied Home Mortgage is suspended from originating or underwriting mortgages insured by the Federal Housing Administration.
The HUD mortgage review board and Ginnie Mae is suspending the lender due to not following a FHA/HUD requirements and not following a compliant quality control plan.
HUD insured mortgage loans are being audited for lending fraud.
U.S. residential real estate prices continue to decline in valuation due to the increase in foreclosures or pre-forclosures. Distressed property investors are considering high yield private real estate loans for real estate investments.
High net worth individuals looking for high yield returns in private real estate lending this practice is growing due the increasing number of foreclosures on the market in areas such as Florida, Alabama, Mississippi, Louisiana, Southeast Texas and Virginia.
Cleaning foreclosures for banked owned properties
Lenders hire foreclosure cleanup businesses to handle cleaning of debris removal, lawn maintenance, pressure washing, gutter cleaning, as well as interior and exterior cleaning.
Banks continue to issue default notices to homeowners behind on their mortgage payments
Even more foreclosures are posed to hit the market after superior court judge Mary Jacobson issued orders to Bank of America, Citibank, JPMorgan Chase, OneWest and Wells faro stating that they have permission to resume prosecution of uncontested foreclosures and this is something that is being seen across each states jurisdictions.
Can I do foreclosure trashouts from home?
Starting a trash out business is something that you can do from home because most of the work is in the field and it just requires renting equipment and hiring staff to compete the work, all the paperwork can be handled with fax and email as long as you have a computer and a phone you can start in your own local area.
Then marketing your business can be done with flyers, postcards or posting ads on business directories, but most of the business is going to come from you contacting large property preservation companies directly to bid on work orders.
The demand for REO contractors is high
The larger property preservation companies have huge inventories with HUD's marketing and management who provide inspection, securitization and maintenance work orders.
For small business vendors you will need to be licensed and insured to do the real estate cleanup in 2012.
To get started look for property preservation job listings in your area. The need for qualified professionals to help the mortgage field services industry is growing due to the increasing defaulted home loan cases.
Cleaning Foreclosures for Banks
If you are want to start business cleaning foreclosures, you may want to do some research first before you pay up any fees for ebooks or membership sites on cleaning foreclosed homes, because as the economy gets tighter people will be looking for ways to do business cleaning foreclosed homes to make extra income from home.
Real Estate Cleanup Services
What this will lead to is a demand for cleaning services by banks and realtors, foreclosed homes for sale is going to need the business of cleaning service businesses so if you are currently cleaning buildings you may want to add foreclosures to your many tasks.
Property Preservation Contract Field Inspection Representative Needed to Inspect Properties
Commercial Cleaning Opportunities
If you have experience cleaning windows high on the outside, having the right supplies such as ladders, and your workers will need to be covered by the right insurance.
Other things such as pressure washing while cleaning the outside of houses that has gotten dirty, the right pressure and solution allows for a clean residential home that is broom swept clean allows for a sparkling clean look for potential home buyers.
Make sure you have the needed licenses and insurance so that you can be recommended for quality service.
What it requires that you to start your own foreclosure cleaning business, due to the great deals that can be found on foreclosures many who have decided to start buying and selling real estate properties have REO's that need to be cleaned and maintained.
Hiring staff workers:
Hiring foreclosure cleaners many banks are looking to property preservation mortgage companies to do the foreclosure trashout.
Starting a foreclosure cleaning service in California:
Starting your own foreclosure cleaning service will allow you to take advantage of this steady market for starting a new business, no matter that the economy is tightening up with lack of credit, loans and jobs, you can start a lucrative business cleaning foreclosed homes if you know what your are doing.
How to market your services for foreclosure cleaning jobs:
Some companies will train you on how to market your services as well as what to price your foreclosure clean out jobs for. In the news it states that many of the banks are now looking at what to do with these vacant foreclosures in Los Angeles because they need to be secured in order to prevent vandalism.
List of foreclosures on RealtyTrac
RealtyTrac has listed the foreclosures for each state and shows which areas will have the highest number of foreclosed bank owned properties for investors to buy.
Asset Managers have list of REO's
Many foreclosed homes are owned by HUD, VA, Fannie Mae, and Freddie Mac, these REO's are listed by asset managers who have a large listing of foreclosures listed by lenders, other foreclosures are owned by institutions who list them by region.
Cost of Cleaning REO's
Cleaning these properties is costly, with the large amounts of trash and damage to the interiors of the homes the banked owned properties need to be secured by changing locks and securing windows, as well as draining swimming pools, next being the outside appearance of the real estate properties, clearing yard of clutter and mowing the lawns.
Towing away automobiles
Abandoned vehicles will have to be towed away and broken windows fixed, inorder for foreclosed homes to be ready for sale.
How to get started in foreclosure Cleaning Business
Develop a good business plan, then apply for a business license, get a bank contact list, bid on projects, market your foreclosure cleaning business, advertise in the property preservation directory, get list of REO asset management companies.
Foreclosure Cleaning in the Recession in L.A.
Some say that cleaning foreclosed houses for banks is the best business to start in a recession, I am not so sure, it raises questions of how is this type of business regulated, is the fair market price being obtained for the services given, could it lead to exploitation of labor workers who need a job due to unemployment in a bad economy? these are just some of the questions that I have been considering when looking into using the foreclosure cleaning business as a way to keep businesses going in a recession.
Banks need to sell these real estate properties as fast as they can, so they are looking for those late property investors who are now entering the real estate market to buy up cleaned out foreclosed homes at rock bottom two digit prices. Best place to look would be a foreclosure listing service.
How to start cleaning Repo Homes
Also known as Repo homes you can allow you to start a small business with cleaning repo homes in your local area, no need to travel depending on where you live. some of the more immediate services needed on repo properties is pool cleaning that is drained, refinished and covered as well as a grass painter, next hauling junk and debris, which could include hazardous materials.
The foreclosure market makes it easier for anyone looking to get into property preservation who do board ups and lock key also known as bank HUD foreclosures.
Rent to Own Foreclosures in United States
Will renting out foreclosed homes be the result of banked owned properties left for being unable to sell them? I think you will see a lot more REO rentals.
Foreclosure Directory Listings
If you are like me you are looking for the foreclosure authority. well when it comes to RealtyTrac it publishes the largest database of foreclosure, auction and bank-owned homes in the country for investors other places I found were foreclosurefreesearch.com which offers the most valuable foreclosure information online, where you can search residential and commercial foreclosure listing nationwide for free.
As you may be aware foreclosure listings from america's most trusted foreclosure source is called Foreclosure Net they allow you to find bank foreclosures, government foreclosed homes, HUD foreclosures as well as bank owned properties, foreclosure listings, government foreclosure, properties tax foreclosure properties, countrywide foreclosure properties, reo properties, foreclosure homes and government tax foreclosure properties.
Government Foreclosures are not easy to buy
For those looking to cash in on all the government foreclosures think again, it will take having cash on hand and to be able to flip the house for resale quickly and efficiently, the key is to spend as little as possible during the renovation so as to make the highest amount of profit when you go to sell the property to first time home buyers.
Many investors are finding they are out bid because home buyers are bidding above the asking price. This leaves those looking for bargains at a loss.
List of Property Preservation Companies
- American Property Management, Inc.
- Corporate Asset Management LL
- Cyprexx Service
- Default Services, Inc.
- Field Asset Service
- First American Field Services
- First American REO Servicing
- FirstService Corporatio
- Five Brothers Mortgage Services
- Fontaine Inspections Inc.
- Lender Processing Service
- LPS Field Services
- M&M Mortgage
- Maxim Enterprises
- Mortgage Contracting Services
- North American Property Preservation
- Now Property Preservation
- REO Allegiance
- Safeguard Properties Inc
- Sierra Field Services
- SingleSource Property Solution
- Southeastern Asset Services
- Spectrum Field Services Inc
- Trinity Field Services
- Wolverine Real Estate Service
Cleaning Up Foreclosed Homes After the Mortgage Crisis
You will have success with starting businesses that will provide Hauling and Demolition, for instance if you are wanting to get into maintenance of HUD Homes those will be properties that had FHA-Insured Loans which went into default. Once this happens they become foreclosed on by the Bank or Mortgage Company. This is when they are transferred to HUD who in turns pays off a Mortgage Insurance Claim previously issued to the Lender.
Who is HUD's sub-agency as for the FHA will end up placing the REO back on the market for re-sale. As you are probably aware HUD's REO Inventory is handled by a Contracted Real Estate or Property Management Company which are called Maintenance and Management (M &M) Contractors.
Many of these types of homes will need initial clean-up, repairs, and renovations. It has been suggested to get contracts for this type of work it is best to contact the M & M Contractor that handles REO homes in your area.
In the case of VA REOs you can find them from a Realtor, who will know if during the bid process if the properties are now co-owned by the VA and the Lender. It is recommended to call the local Association of Realtor OR the Multiple Listing Service in your State. Contact the lender of veteran administration and ask for maintenance work for VA Repos.
REO's become the property of the Private Mortgage Insujrance (PMI) Company. So it is best to develop a relationship with the REO department or the Asset Management branch also known as the Property Disposition or sales division.
More by this Author
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What you must know before getting started with your foreclosure clean up business is not as easy as some have made it out to be. Some things you must know about the business of removing trash and debris.
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