Foreclosure Floodgates Opening Up Again Can Mean Big Business for Smaller Companies
Just recently, Superior Court Judge Mary Jacobson issued orders stating that Bank of America, Citibank, JPMorgan Chase, OneWest, and Wells Fargo had demonstrated the 'reliability of their processes' and that they were granted permission to resume prosecution of uncontested foreclosures in New Jersey. It's not unreasonable to predict other states will follow suit. This means the foreclosure floodgates will be fully open, and the industry will see even more foreclosures hit the market. Smaller foreclosure cleanup vendors, those properly credentialed, will be in great demand as banks move in on their stagnant files.
A foreclosure cleanup business handles everything from cleaning and debris removal, to lawn maintenance, pressure washing, gutter cleaning, interior and exterior cleaning, painting, winterization and de-winterization, roof repairs, general handyman duties, window and door boarding and replacement, locksmith services, vacancy, occupation and various other inspections, and more.
Foreclosure cleaning businesses are solid enterprises to start in today's turbulent real estate world. These types of REO services are in huge demand in a market packed with defaults and ultimate foreclosures. The robo-signing fiasco held up a great number of foreclosures starting back in 2010.
Because several of the larger lenders through the United States were buried under litigation paperwork, they just could not trudge ahead with courthouse step foreclosures on buyers in default.
But even then, the foreclosure cleaning industry still thrived because the REOs financial institutions did have on their books had to inspected, secured and maintained. And the smaller foreclosure cleanup company was the maintenance and inspection arm, either directly as contractors, or indirectly through their larger property preservation partners.
Larger property preservation companies often work for HUD's marketing and management ("M & M") derivatives. The M & Ms provide inspection, securitization and maintenance work orders to the larger property preservation companies, who, in turn, outsource these work orders to smaller, licensed and insured foreclosure cleanup businesses.
According to Cassandra Black, the author of How to Start a Foreclosure Cleanup Business, "I've seen more property preservation job listings than I've ever seen before. , which means that they need managing default files and coordinating vendors. "
With the legal arm being lifted from the large banks, we can expect to see a plethora of new foreclosures hitting the market over the coming months. The smaller foreclosure cleanup company that's properly licensed and insured, organized, and poised to act can have a thriving mortgage field services enterprise for years to come if they take advantage of the workload available in today's real estate market.