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Start a Professional Foreclosure Clean out Business

Updated on March 3, 2014

Tips for a professional cleaning recession proof business

Residential cleaning on Banked Owned Properties is needed for the rising inventory of homes in dire need of repair and maintenance.

Lenders Processing REO Properties

REO properties are part of the lender processing and mortgage industry that is seeing a growth in contracts for real estate services such as cleaning, maintenance and repair of abandoned vacant homes in foreclosure and pre-foreclosure.

It is no wonder that the large numberof mortgage field services, REO and property preservation companies can't manage the growing number of defaults. You have the opportunity to get on the vendor lists for doing lawn maintenance, painting, locksmith, inspection and window boarding.

Robo-Signing Lawsuit and Settlements

After the robo signing lawsuits reached a settlement with the banks and the attorney general the rush to push through defaults will increase rapidly with more foreclosure filings going to market.

First you will need a business plan and an outline of what your objectives will be for foreclosure cleaning. Next ask yourself some tough questions on why you want to start a cleaning business.

It is important to understand what it will take to get licensed and insured to handle foreclosure cleanup requests from Realtors, Mortgage companies, REO's.

Miami-Fort Lauderdale is worst performing housing markets
Miami-Fort Lauderdale is worst performing housing markets

America's best and worst performing housing markets

The Obama mortgage relief program has offered incentives to buy homes due to low interest rates.

At the same time the U.S. Median home values are down 9.9% below 2009 levels a popular real estate information marketplace reports that not all housing markets are struggling.

A small number of cities are experiencing a rise in home values, one such area is in affluent Weston Florida the list also includes Utica, New York, Morristown, Tennessee, and Penn Hills, Pennsylvania.

If you are in the business of cleaning out REO's and banked owned properties you will want to take a look at the areas that are showing the worse performance in Homestead Florida an area where there is low-income such as the Miami suburbs.

3 things you should know before you start a cleaning business in Utah

First you need to set up a website so you that a professional web presence online can be established right away, I know your probably thinking this will take too much time, but actually it is not that hard and the payoff is well worth the effort.

The Top 5 Cities for Foreclosures

  1. Homestead Miami, Florida
  2. Pontiac Detroit Michigan
  3. Trenton New Jersey
  4. Lehigh Acres, Fort Meyers Florida
  5. Altamonte Springs, Orlando Florida

Foreclosed Home Cleaning

Things people leave behind, it is such a drastic move when homeowners find that they can not pay their mortgage, when they go into default it may leave them desperate without hope some of the things left behind can be a childs toys or electronics, homework, and even important documents, anything of value will be held for a time until most of the belongings are taken to the dump.

Banked owned properties cleaning foreclosures

Is a business that has been on the rise and many have written e-books and how to manuals for those looking for a way to make money in a bad economy, but is these home foreclosure cleaning systems a scam or are they really giving you all the information that you will need to be successful in this growing industry?

Hauling and Demolition

Is a service where you have more than likely seen ads for foreclosure cleaning, clean out, clear out, painting repairs, REO Cleanup, Real Estate, cleanup, cleaning companies mentioned on 60 minutes and USA Today that will get you started with how to get into this type of work and the insurance and licensing required to clean bank owned homes.

Types of cleaning services you can offer banks and realtors who specialize in foreclosure properties.

Cleaning REO properties and abandoned homes for lenders and asset managers leave you many options as a small business you can expect to earn a six figure salary if you are willing to travel and meet certain contractual deadlines.

The number of foreclosures on the market today is high this lends an opportunity for those who want to make money and build an income for the long term.

Commercial cleaning companies can expand their business to include residential to offer assistance to property owners who need to sale a home after it has been cleaned and restored.

Some of the more popular areas that you can provide services for are: Helping "for sale by owner" persons who want to sale their home, they will need the white gove treatment which is cleaning done to improve the appearance of homes that have been sitting for long periods of time.

Window cleaning is another area that can be a big business for offices, apartments or vacation homes. It will require that your company keep the right kind of liablility insurance to cover any injuries faced on the job.

Pressure washing is another area that is needed by property owners, it is used to clean the outside of a building or the driveway. If you need to get equipment for your government contract jobs you can either buy it or rent it out.

To determine this start by finding out how much it is going to cost to finish the job when just starting out in your business you may want to look for used cleaning equipment at online auction sites.

Some of the types of cheap equipment you can find for your foreclosure business is lawn mowers, pressure washers, leaf blowers, and handyman tools

You will need a way to haul away the trash and debris and cleaning products to mop and sweep the floors, walls and garage. Check out sales at home improvement stores like Home depot

Foreclosure trash out business opportunity

Next every foreclosure clean out business needs a to have property liability insurance to cover any damages if any that might occur during cleaning a property, also a fidelity bond may be required to cover theft in case it happens among employees.

Lastly equipment and supplies need to have a storage place as well as proper safety supplies will ensure that you are able to complete each trash out clean out service effectively for asset management.

Since it is a booming business you have the opportunity to include in your business plan a way to provide your services just like locksmiths and board-up specialists, trash-out firms have benefited from the foreclosure crisis.

Some of the fees you can charge is anywhere from $600 to $1,500 for light landscaping, basic hauling and general cleanup, but some jobs cost upward of $7,000. Some homes are left in good condition, but plenty contain waist-high garbage and junk vehicles in yards.

It is recommended that you talk to professionals about the types of licenses and insurance required for your part of the country.

Cleaning foreclosures for a living what you need to get started

First off cleaning foreclosures is a recession proof business, you do not need any prior experience and there is little competition. You will want to be familiar with cleanups and cleanouts of Homes, Businesses, Foreclosures, Evictions, and Estates.

Cases show that some investors bought homes with no money down, rented them out, and skipped mortgage payments leaving renters surprised to learn that they're getting evicted because of the landlord's irresponsibility.
leaving homes left needing to be cleaned out and ready for resale.

Services Performed: -Meticulous indoor cleaning -Debris Removal - unwanted rubbish inside and out -Lock Changes -Minor Repairs -Mow, trim, and rake premises -Windows cleaning / pressure cleaning

Helping homeowners pay their mortgages, The Treasury will also expand refinancing efforts by government- chartered lenders Fannie Mae and Freddie Mac, which together own or guarantee about half of all US mortgages.

Make a list and keep a roster so you can follow-up with the contacts on a regular basis, they may not need work at the moment but things can always change for the better.

REO Banked owned property listing

The following is a list of banks and lenders that have REO properties, you can contact them to offer your services:

  • 21st Mortgage Corp
  • MobileHome REOs
  • AmSouth Bank
  • Bank serving South Eastern US, merged with Regions Financial Corp
  • Bank Of America
  • Beal Bank
  • BB&T (Branch Banking & Trust)
  • Reo Property in 23 states, mostly Eastern & Southern, Midwest, TX, & CO,
  • Bayview Financial REO
  • Reo Property mostly in SouthEast states, FL, AL, GA
  • Chase Bank Nationwide REOs
  • CitiMortgage Nationwide REOs
  • Compass Bank REO Properties in AL, AZ, CO, FL, NM, TX
  • Countrywide Home Loans Largest Nationwide Originator, thousands of REO properties
  • Downey Savings and Loan 325 listings in CA, 35 in AZ,
  • Fannie Mae Lots of REO property nationwide
  • Fidelity National Financial

You will want to make sure you contact the right division or department to send a email or mailing correspondence that showcases how your cleaning business can provide property preservation services to help maintain real estate property on a long term basis. Realtors will want to work with you if they can see that you will be able to get the jobs done in a reasonable turnaround.

Developers and investors will have properties that have been acquired by failed bank assets, due to the overwhelming workload you can position yourself as the first point of contact.

Cleaning Franchise Office Cleaning

Some forget about the big business of commercial foreclosures, you can start a business that cleans more than just houses.

In your local area you will find that business buildings need to have a crew to come and maintain recently abandoned retail, banking and corporate offices.

It may be easier to start a cleaning franchise that specializes in this type of real estate, such as with they help you earn money with commercial cleaning for starting your foreclosure cleaning business today.

Opportunities are for sale every day and usually the cost of entry is low enough to make a profit right away.

As far as house cleaning prices go it will differ from business cleaning prices. Most janitorial cleaning quotes start with the size of the building and how much debris needs to be removed.

The turnaround time may be a few days and if this is the case a dumpster rental as well as paying workers will make the total price to be much higher.

Services you can provide for your foreclosure cleaning business

Foreclosures in Utah are creating an economic boon for entrepreneurs, who want to start a business as brokers and investors require services to clean or trash-out homes seized by lenders. fix up a vandalized vacant home.

You will see windows were broken, doors were missing and holes were punched in the walls, you r company will be contracted out by lenders such as Fannie Mae to clean and secure them.

Nevada, California, and Arizona has been the fastest growing states in the home crisis resulting from the major housing boom. Starting your own company in Utah that specializes in removing whatever people leave behind in their foreclosed homes will be a profitable venture.

How to start a foreclosure trash out service

The process is called a trashout a term the company came up with because it perfectly describes what happens. Everything that’s left is dumped in a trailer and taken to the landfill. As you well know that banks use the term "property preservation" for clearing out and cleaning up foreclosed homes.

The types of Foreclosure Cleanup your business can offer can include such things as a Clear Out, Cleaning, Painting, Repairs, REO Cleanup, Real Estate Cleanup, Lawn Maintenance, Mowing, Atlanta, Debris, Hauling, BPO, Corporation.So that you can be competitive in an industry that is changing everyday.

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