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.
Margarita Roger on August 29, 2011:
I have been working for a Contractor he is contracted through a big bank, I am interested in starting my own bussiness cleaning homes after the work is done. I have three years experience in the forclosure homes, and would highly appreciated if someone gives me ideas on where to contact who? I live in Miami, florida.
Ashleigh on August 01, 2011:
I started a cleanout company and have made more money in a month than I have in a six month period.
david on July 30, 2011:
Would like to learn how to get in to cleaning homes for banks.
Ali on June 15, 2011:
I'm seeking a contract to trashout Forclosed homes and other home repairs.lawn care etc. Professional and hard worker. 20 years experience. Also do painting exterior/interior. Need job urgently. thank you
david on June 08, 2011:
i am looking for trashouts and grass cutting in the limamohio area,if anyone has contacts please email me firstname.lastname@example.org.
david on June 08, 2011:
i have been in the foreclosure cleanup business going on 5 years its hard to stay afloat if you dont have money upfront and can budget good as i always say its feast or famine,working for assest companies will get you experience but its also like working for temporary agency you pay for their salary while busting your butt
Kelly on June 05, 2011:
I started my company Clear & Gone Foreclosure & Evictions in September of 2010 here in Colorado and just recently got signed on with a HUD contractor to do work orders however the pay is slow and only 4 jobs since we started in late April I would like to get more jobs and contract myself. Does anyone know the correct way to do this? 970 324 6986
Jean on May 23, 2011:
I am living here in Rapid City, South Dakota. I want to start my business to clean forclosure home. Is there anyone out there that is willing to help me. Please call (605) 393-5705 Thanks.
johann on May 17, 2011:
i'm living in houston texas and i want to start my business and i need help if anyone is out there please be more than welcome to call me at 832 665 4359
EnjoyYourLife from New York on March 26, 2011:
Excellent hub, thanks so much for great information.
Linda on March 03, 2011:
Iam very interested in cleaning foreclosed homes.I've been in the cleaning business for 13 years (commercial/recidential/office cleaning/handy man jobs.I can be contacted at (650)290-4991 -(650)299-9248 Redwood City CA or email@example.com
realtalk35 on March 01, 2011:
If you're not getting work orders directly from the big banks, then you're not making any money. You pay all of your money for license and liability insurance and has to wait for $10 dollar for a trip charge, $15 dollars for a grass cut that takes forty five days too three months and still receiving work orders, do you find this kind of strange. Wake up people, the reason why it takes long to get paid is to keep you in the blind while they pocket and at the same time keep sending you work. The first time you stand up to them they stop sending you work and hoping you quit for them, where they are able to charge back the work that you haven't done already. Do this make sense people.
realtalk35 on March 01, 2011:
People don't get ahead of your self. This business is not all what it crack up to be. I agree with Kara with the only people making money is those big asset companies like safeguard, cypress services, southeastern asset services, and all of the rest of them. They have you to do all the work for them and when it's time to get paid they you come up with all the bull about pictures was not uploaded right, need to bid lower, not enough pictures to get you delayed on payment. These companies get half of your pay on everything you do for them. I just think that it's a shame. We need to come together as a whole and stand up to these companies because they are really getting over on us. Without us they would'nt have lasted this long.
wanda on February 18, 2011:
IS THERE ANYONE WHO KNOWS ABOUT THE GRASS CUTING FOR THE FORECLOSER HOMES IF SO PLEASE EMAIL firstname.lastname@example.org we live on the east coast.
Kara on November 02, 2010:
In order to get your hand into this indestry, you need to work under a company that works with the banks. Banks are no londer working with small companys or even new companys. I suggest not buying anything related to this business. All the informaion you need you can recieve from internet. When you do snag the jobs....make sure you have some sort of contract written, on how much you get paid and when. Also remember when you begin in this induesrty you are at the bottom....meaning endless grass cut that only pay little. People get excited when they hear easy money, but its not. Most people making money are the ones that started 3+ years ago, moraege companys, big contracting companys. We started our company 7 months ago and now having to rethink of another company. I hope I gave all of you a lil insight on how this all works. Good luck.....
jimboslice on October 25, 2010:
it does not look like this is a ez bussness to get into
Tawanda on October 18, 2010:
I am new to the Trash out business and I am starting a Cleanout business in Newark, De. Please contatc me at 302-607-1368..
De Edric Graham on October 07, 2010:
I am currently looking for information on how to get started with a bank on cleaning and maintaining foreclosed and abondoned properties. I have approximately 13 years in the maintenance filed. Ranging from industrial cleaning, to entry level plumbing and electrical. If someone could please point me in the right directin here in the Los Angeles area I would be very appreciative. My e-mail is email@example.com and my cell is (323) 707-9703
Nancy on September 23, 2010:
Trying to start a cleaning busniess 317 627 1645
Kara on September 13, 2010:
I am very interested in cleaning forclosed homes. I would like anyinformation that will help me. firstname.lastname@example.org
Tim Brown on August 17, 2010:
I've been in the cleaning business for seven years (Commercial/resendital). I'm intrested in expanding into foreclorure cleaning. I can be contacted at email@example.com
Toni on August 10, 2010:
Hi i clean out forclosed homes now for someone and im really good at it. I will like more work or to start my own. please help 773 828-1235
Research Analyst (author) on August 09, 2010:
Thanks, Richard for your comment, it is appreciated.
Richard Stephen on August 09, 2010:
Nice hub with a lot of information. However, anyone interested in this line of work should be aware there can be some safety issues. Some of these foreclosed are inhabited by squatters and homeless people. Some are also frequented by drug users. Many times these people don't take kindly to be pushed out of "their home". This is not the kind of work you do alone. Just some food for thought.
Suki on August 02, 2010:
Im looking to help someone with cleaning out foreclosed homes. firstname.lastname@example.org I live in Mcdonough
william on July 17, 2010:
hi am i trying to find out who u contact for trash outs to get started i am not sure if u contact the bank or real estate companies if anyone knows can u please email me at email@example.com
renata smith on July 12, 2010:
im not looking to start a business just looking for work if any is avaliable contact me at firstname.lastname@example.org
reginald wiley on July 07, 2010:
i,m in tampa florida and need to find out what real estate company want,s there houses clean out.can you email me @ email@example.com. thanks.
Dan on June 25, 2010:
I'm interested in working part-time (wkends)cleaning up foreclosed homes in the Kansas City area. Have reliable transportation (small pickup), some tools (shovels, rakes, dolly, hand tools), and plenty of old clothes I don't mind getting dirty.
I'm not interested in running or starting a business, just looking for some side income.
I can be reached at firstname.lastname@example.org.
jerry on May 04, 2010:
likewise, wanting to learn how to get started in the cleaning business. feel free to contact at email@example.com
Sergio on May 04, 2010:
I'am interested in this i will appreciate if you called me im in the area of California inland empire my number is (909) 419-9349 and email address is firstname.lastname@example.org.
Koller on May 02, 2010:
We live in Illinois,Darien....i have my own company and would like to start in cleaning foreclosure bussiness i can do cleaning and full re-modoling if someone can get to me with a valuble info or help me start it i would realy appreaciate it
CEMiller on April 27, 2010:
We do REO clean-ups in/around Atlanta. email@example.com
Veronica on April 27, 2010:
I have 8 years of experience cleaning houses and have done a few forecloused homes in FRESNO,TULARE,KINGS and MONTEREY COUNTY in CALIFORNIA. call (559)380-9887
Teresa P. on April 20, 2010:
I have a cleaning business. I am bonded and insured. I would like help on how to get started cleaning these type of homes. I am willing to clean gibson, madison, or shelby county area. Call me @731-487-7693
berenice on April 06, 2010:
hi i am staying in the bakersfield area and in interested in cleaning forclousure homes in in need of o job asap call me at 661-346-6025
curt on March 01, 2010:
I went and paid for buss license liability insurance ,was all set up,and could not find any one who was willing to give me a chance,the real estate agents either had one person the used or most of the time their husbands or kids did the work,VERY HARD TO GET STARTED
Luis Reyes on February 23, 2010:
I am interested in cleaning foreclousured houses for banks, gov, state.. Any info will be appreciated #757-708-8703
frank on January 18, 2010:
I see the boom of work in this , and would want to get started asap!!!!! (559)394-0070 ........
tina mathis on January 14, 2010:
i would like to start a cleaning business
MIKE POMPURA on November 25, 2009:
I WOULD LIKE TO START A POOL CARE/POOL CLEANING BUSINESS, I NEED SOME HELP ????
riverside ca area
MIKE POMPURA on November 25, 2009:
I WOULD LIKE TO START A FORECLOSURE BUSINESS,NEED SOME HELP ????????
Jennifer M. on November 15, 2009:
Iwould like any help any one could offer on how to find companies that are hiring workers to do foreclosure vclean up jobs.That is will to train. I am a certified nurse assistant am willing to change careers kinda getting burnt out.Been in the same3 business 15 years.Any help will be greatly appreciated.
sandra on May 24, 2009:
I was looking for a part time job cleaning out foreclosed homes in my area....not to start my own business but to help out...here in Summit county and Portage county Ohio.....
Google Biz Kit on May 08, 2009:
I recently saw a program on a business in CA that work on clearing out houses that have been abandoned, its scary how much business they're getting these days.