How to make money cleaning out foreclosed homes

Banks do not handle this themselves, but before you can get a contract providing clean out services for a bank’s foreclosures, you need to understand who hires the t and what they expect. These properties represent a significant loss of income to the bank, and they normally want to sell them as quickly as possible. When you start a clean out business, you need to have a good understanding of what you will be expected to. Bank REO officers will be certain to ask you what your services cover. In most cases, when banks are seeking someone to handle cleaning out a foreclosure, they want someone who will completely clean out the inside of the home, including closets, cabinets and drawers. Everything has to go, whether it is trash, abandoned coeaning or something in. When you talk to bank personnel, be clear that you provide complete clean-out services, and be prepared to provide gow time frame as .

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Vacant, foreclosed homes have a negative impact on neighborhoods and communities. Banks and other mortgage lenders frequently want to get these properties sold as soon as possible. Because of the nature of foreclosure, it is often necessary to remove the personal possessions and debris left behind by the property’s previous owner. If you are in the cleaning or junk removal industry, foreclosure cleanout contracts can be a lucrative revenue stream. When a property owner is unable to make his or her mortgage payments, banks have the option of foreclosing the mortgage, evicting the owner or his or her tenants and taking possession of the home or building. After the eviction, it is then up to the lender to sell the home to someone else. In an ideal situation, lenders and property owners work together to make the foreclosure and eviction process run smoothly. This may even mean that a lender will agree to not foreclose on a property in exchange for the owner giving up his or her rights to the property and moving out voluntarily.

Help from HUD

Lenders will even sometimes pay cash to owners who agreed to leave voluntarily and leave the home in excellent «broom swept» condition. This means that all personal property has been removed from the home and that it has been cleaned so that it can be shown by real estate agents to possible buyers. Unfortunately, these amicable agreements do not always happen. In some cases, owners or tenants refuse to leave a property voluntarily and may not even be prepared for a sheriff’s eviction. In other cases, residents will simply abandon the property and move elsewhere. As a result, a foreclosed home may contain personal property that belonged to the previous occupants. Personal property usually needs to be removed before a bank or lender is able to put the home back on the market for sale. Other factors that may need to be considered include the possibility that a home has been structurally damaged by an angry owner or tenant, that the home may contain potentially dangerous debris such as drug paraphernalia or that the place has been infested with insects or rodents. Because standard moving and cleaning companies are usually not equipped or willing to take on jobs involving the removal and disposal of large amounts of personal property cleaning up debris or dealing with structural issues, some junk disposal businesses specialize in foreclosure closeouts. If you operate a junk disposal business, learning how to find and bid on jobs can greatly increase your profits. Cleaning up a home after a foreclosure isn’t just a matter of moving personal possessions from one property to the next, nor is it as straightforward as a typical junk removal project.

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Join Today. One of the fastest growing segments of our industry today is cleaning homes that have been placed in foreclosure. Sadly to say, the demand for cleaning these properties is unprecedented in recent times. Although a foreclosure property is someone’s misfortune, it at the same time, is an opportunity for the cleaning business owner to keep employees working and to charge a premium for their work. While it is another income source for the business owner, is it worth your time and effort? Can you benefit from targeting this fast growing market? There are companies springing up across America called Property Preservation Companies, whose core business is the cleanup of foreclosure properties. Their services include interior cleanup, yard cleanup, hauling of rubbish and debris, lock changing and other general cleanup of the home and yard. You don’t have to be a Property Preservation Company to get involved in foreclosure cleaning, but you will probably be asked to provide at least some of these services.

Real Estate Owned Properties

Foreclosed home are usually sold «as-is,» meaning the foreclosing institution won’t make major repairs. What they will do is hire a contractor to clean the house and make it presentable, and that presents a low cost, high margin business opportunity for entrepreneurs.

Your customers will be the rights holders to the foreclosed properties, either how to make money cleaning out foreclosed homes U. Contact your local HUD office or the real estate agents in your area that specialize in HUD foreclosures to find out how to get a contract as a cleaning service. Also contact banks that provide mortgage loans, which may be easier to work with than the government-run HUD.

This step will let you know not only what you need to do to earn a contract, but whether your services are needed.

Before starting any business it’s important to make sure you have a market. Establish your cleaning business. Set up your business structure. HUD and banks will likely prefer to work with a business entity such as limited liability company over a sole proprietorship. Obtain a business license per the requirements of your city or county. Apply to get bonded, which will give your clients assurance that you’ll complete the contracted work.

Get insurance to protect yourself and your staff. Some of these homes will be in a state of disrepair and potentially unsafe. Create a service and price list, and have needed contracts and forms ready to go. Make an appointment to present your business to local HUD representatives and real estate agents, and bank managers in charge of foreclosed homes.

HUD has a website that lists their representatives in each area. Create a presentation that outlines your services and how you can help increase the value and speed up the sale of a foreclosed home. Consider touring the homes before your presentation so you can give specific examples.

Back up your presentation with a thorough knowledge of the foreclosure process. Comply with all requirements. Governments and banks have policies and guidelines that their contractors need to work. Be sure you understand them and work within the limits. Expand your business by contacting real estate agents to provide cleaning services to their clients to help the home sell or when a buyer is moving into a new home.

Contact apartment or home leasing management companies to offer cleaning services to their rental units after a tenant has moved. Leslie Truex has been telecommuting and freelancing since She has been an Aerobics and Fitness Association of America certified fitness instructor since Skip to main content. Tip Expand your business by contacting real estate agents to provide cleaning services to their clients to help the home sell or when a buyer is moving into a new home.

About the Author Leslie Truex has been telecommuting and freelancing since Truex, Leslie. Small Business — Chron. Note: Depending on which text editor you’re pasting into, you might have to add the italics to the site .

How to Make 2k Cleaning Foreclosed Homes For The Bank

Set up Shop

In the years immediately following the Great Recession ofU. This created various business opportunities, foreclosure cleaning services among. Byhowever, the housing market had substantially recovered, and foreclosures reached all-time lows. Even as this housing recovery trend continues, the reality is that inmore thanforeclosures were filed.

Clean Out Basics

There is a continuing need for a specialized one-stop service that acts on behalf of banks and other lenders to clean up and restore a foreclosed house to some semblance of saleability. Lenders need more and in some ways less than a normal housecleaning service. Former homeowners or renters leaving a foreclosed property typically leave almost everything behind: clothing, furniture and other household items — often along with a lot trash. Lenders need a specialized foreclosure cleaning service that’s prepared to enter the house sometimes when keys are missing and remove these items, disposing of them permanently.