How Will the Foreclosure Freeze Impact Foreclosure Cleanup Industry?
How will the foreclosure freeze impact our industry? Below is banter I exchanged with a foreclosure cleanup business owner recently. Thought you all could benefit from reading it:
QUESTION: Hi Cassandra, thank you for all of your help thus far. :) As of recent news, it seems as though the major banks are stopping the foreclosure process in not just the judicial states, but all 50 states now. How do you feel this might directly or indirectly affect the property preservation and trash-out industry? This might be good to mention in your blog also. ... K.S., San Clemente, CA
ANSWER: Hi K, you are welcome. :) Foreclosure Halts: Ironically, I think the halts will help our industry. Was just talking about this with a colleague the other day. Many of the
homes that are
being foreclosed on are sitting EMPTY. Many of the previous owners have long gone and the banks are maintaining them. With the foreclosure halts, this means banks will not be able to officially foreclose on the
ultimately re-sell these homes -- which is what they want. They will be stuck with maintaining them until the legal rollercoaster is over -- which will really benefit foreclosure cleanup companies who focus on exterior
lock changing, boarding and debris removal (many will become dumping grounds in certain areas). ... You're right; will do a blog post next week... thanks for the suggestion. Continued success ... . Keep in touch.
FURTHER TO THE ABOVE ... As stated, as a foreclosure cleanup business owner, you should know this means banks will be holding onto homes longer because they can't sell
contracts that buyers have on foreclosed properties are being put on hold, which means, again, banks will have to hold these properties and MAINTAIN them longer... (see elaborative Trulia post entitled, "4 Things Buyers Need to Know About Robo-signing and the
Freeze," by Attorney, Broker and Columnist Tara-Nicholle Nelson). This means more work for you as a foreclosure cleanup service
provider. Yards will
still need to be maintained, properties will have to be secured, windows boarded and the like. Which means more business for your foreclosure cleanup company during the foreclosure freeze.
Continued success with your foreclosure cleanup business.
NOTE: Throughout the internet and in real estate industry literature, you may see the names mortgage field services, property preservation business, REO trashouts, foreclosure cleanup, foreclosure cleaning, foreclosure clean-outs, foreclosure clean, clean foreclosures, cleaning foreclosures, REO trashout, field asset services, property field services, field service, and field services used interchangeable. The main thing to remember is foreclosure cleaning and foreclosure cleanup generally refer to smaller entities; while property preservation generally refers to larger companies.