Home Foreclosures - Why Foreclosure Clean Up Companies Are Poised to Capitalize Even More
Posted by: real estate / Category: ForeclosuresIt’s taking banks so longer and longer to process home foreclosures. What does this mean for foreclosure clean up business owners? When the flood gates open, foreclosure cleaning and real estate services companies are going to be busier than ever.
Following is an explanation of how and why.
Home Foreclosures: How Long Does It Take a Bank to Foreclose?
The time period from when formal home foreclosure takes place varies by state. Some states have a grace period of 30 days; others can take as long as six months. But, these are in normal times. Right now, we’re in anything but normal times.
It’s taking banks in states with high home foreclosure rates (eg, Florida, Georgia, California, Nevada, etc.) as long as six or nine months to even get around to even dealing with a property and processing it as an official foreclosure.
Home Foreclosures: The “Sign” (or Not) of the Times
Usually, when a home is foreclosed on, soon after the residents depart, you’ll see a realtor’s “For Sale” sign in the yard. Or, a bank “Foreclosure for Sale” sign. Or at the very least some kind of lock box on the door to secure the property.
Nowadays, it’s not uncommon for a property to sit empty — with none of the above present — for months on end.
This probably means that the bank/lender hasn’t gotten around to officially foreclosing on the property because once they do, they assign it to a realtor to be fixed up and ready to be marketed again (eg, put up for sale or lease).
When you consider the latest home foreclosure statistics, this makes perfect sense. According to RealtyTrac, a leading site for home foreclosure information, U.S. foreclosure filings may hit a record 1.8 million by the first half of the year (2009).
Foreclosure Cleanup and Real Estate Cleaning Firms Poised to Capitalize
Once banks get their policies and procedures in place, foreclosure clean up and real estate services firms are poised to capitalize.
Right now, banks are just struggling to deal with the tsunami of paperwork required to process a foreclosure. This leaves little time for vetting companies to deal with what happens after this process is done, eg, getting a property ready to go back on the market again.
Want Foreclosure Clean Up Contracts? Get Official
Man-with-a-van-type operations won’t cut it. Banks and other lenders will be looking for companies that have the proper licensing and insurance, at the very least. In essence, they will be looking to hand out foreclosure clean up contracts and other real-estate-related services to “official” companies.
Many communities have federal dollars that have come in/are coming in to specifically help neighborhoods recover from the home foreclosure crisis.
Those foreclosure clean up companies (and real estate services firms) who have their “ducks in a row,” so to speak, will be the ones to capitalize.
May be reprinted with the following, in full: Learn what an FDIC official said about the banking industry’s backup in processing home foreclosures and why foreclosure clean up businesses are poised to capitalize. It’s all at ForeclosureBusinessNews.com, where you’ll also find up-to-date info on the foreclosure crisis, a foreclosure jobs portal and free foreclosure articles for your website, newsletter or blog.
Yuwanda_Black
Last 5 posts in Foreclosures
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- How to Stop Foreclosure and Save Your Dignity - June 19th, 2009
- Fight to Delay Foreclosure Now, Then Use Some Tactics to Qualify For a Mortgage Modification Plan - June 19th, 2009
- Should You Sell Your Home to Help Stop Foreclosure - June 19th, 2009
- Ways to Stop Foreclosure - You Still Have Time to Stop It - June 19th, 2009
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Tags: Foreclosure, Lease