In October 2010, a few of the nation’s largest banks stopped foreclosure proceedings (halted them) against homeowners. This was due to claims that some foreclosures were illegal because the paperwork wasn’t processed the right way. No matter how this all shakes it, the news may be a bit confusing to a lot of real estate service businesses like foreclosure clean up companies.
They may be wondering “How will this halt on home foreclosures impact my business? Will it mean a slowdown in job orders, or a pick up in work?”
Here’s how we see it shaking out.
Foreclosure Clean Up & Other Real Estate Service Business Will Thrive
The reason is really quite simple – the longer a lender has to hold onto a property, the longer the property has to be serviced/maintained.
You see, whomever owns the property is responsible for the upkeep. And, when a bank forecloses on a property, they’re taking it back. But, the maintenance doesn’t stop.
Lawns still must be cut, fences need to be mended, pools need to be cleaned and drained, winterization needs to be done, gutters need to be cleaned, etc. All of these are exactly the types of services a full-service foreclosure cleanup business can handle.
“But,” you may be thinking, “what happens once the initial upkeep has been taken care of on a property? Will there still be work my foreclosure cleaning company can vie for?”
And, the answer is a resounding yes. Again, it’s quite simple. Until a property is resold (or rented), it has to be maintained to keep it from falling into disrepair and losing (even more) value.
This means if it hasn’t sold in six months – and a lot of properties are sitting on the market for way more than a year these days, then gutters may need to be cleaned again, the lawn constantly has to be cut during the summer time and repairs may need to be done because of bad weather (eg, water leaks, roofing tiles missing, etc.).
Securing Foreclosure Cleanup Jobs as a Consequence of Property Damage
Furthermore, this doesn’t include property damage caused by vandals, vagrants and thieves. And, this happens more than you know. In fact, lenders have been known to tear a property down instead of maintain it because it’s cheaper to do so. An article in the Wall Street Journal entitled, “No Sale: Bank Wrecks New Houses,” spoke to this issue, noting:
“The bank… faced escalating city fines as vandals and squatters took over the sprawling housing project, leaving behind graffiti and drug paraphernalia,…”
This is rare though, but it does illustrate how much upkeep is needed when a property is not occupied.
The bottom line is, as long as homes are bought and sold, there will be a need for the types of services that a foreclosure cleanup business (and other real estate service businesses) provide.