Foreclosure Cleanup Business Booms

Daily Real Estate News  |   February 19, 2008
Business is growing among small mortgage field-servicing firms that specialize in taking care of vacant properties.

These companies keep mostly foreclosed properties free from burst pipes, vandals, rot, and animals until they can be resold.

Some trade groups estimate mortgage servicing to be a $1 billion business with 8,000 to 10,000 companies in the business.

Sometimes these mortgage service companies are employed directly by lenders. Other times they work for national middlemen who handle large volumes of foreclosures and farm out the fix-up work to smaller regional firms.

Rates for the work are based on guidelines from the U.S. Department of Housing and Urban Development. For instance, $40 to secure a door with a new lock and $20 to inspect the exterior of a home for occupancy. For some tasks, rates vary by state: $180 to remove a vehicle in Alabama vs. $240 in Michigan.

Source: The Wall Street Journal, Gwendolyn Bounds (02/19/08)

Author: niaknowles

Real Estate Broker, Christian Yogi, Mother of three

56 thoughts on “Foreclosure Cleanup Business Booms”

  1. how did u get started?how much start up money was needed? did you go to real estate companies or banks to get foreclosed homes to clean up?

  2. I am currently working for someone in maryland. I am cleaning out the houses and hes rakeing in all the cash. I am thinking about starting my own in Pa but I’m not sure where to start. Could you help me?

  3. I would like an answer to the question that was asked how do I get started. I am living in Michigan where unfortunately the foreclosure rate is very high. I myself just skated by a foreclosure. I an interested in getting into the business but where do I start?

  4. Hello, I am current owned of a house cleaning company, I would like information on how to price REO clean up. Thank you.

  5. I am interested in starting up a clean up business. i have a lawn care service. I feel as if there a need in my area of N. C. Could any one give me help on local home in my area. thank you for your help. Yvonne

  6. Please contact me with information regarding this business. I would be available in the following counties in s.w. florida. Collier, Lee, henry.

    I can also be reached via my cell phone: 239-692-1671.

    I will look forward to your response.

    Thank you.

    Dan Ventre

  7. I am in the Daytona Beach area. I am looking to start a cleanup business. Don’t know the companies that I would contract with. Can you please call me and let me know where to get started to do this. My wife was in the mortgage business for 23 years and is very much aware of the declining market and all the foreclosures at this time.

    Thank you,

    Fritz

  8. I am looking to get started into the foreclosure clean-up business. I need some tips on how to get started – such as:

    1. Who to contact
    2. How to price a location
    3. What equipment is needed.
    4. How/Where do you dispose items.

  9. How and who do you contact when starting up this clean up service?? Is there a certain company that sets it up or do you just call realitors?? If so how do you come up with a estamate??

  10. Hi my name is Darrell and I have started a Foreclosure cleanup company that is called Wee Clean and I would like any information that you can give me that would grow my company.

    Thanks so much,

    Darrell Lundy

  11. I am very interested in starting a forclosure clean up businees in the dENVER METRO Area.If anyone can give me any ideas of where and how to begin, it would be greatly appreciated.

    tabatha
    ctoptwo@yahoo.com

  12. Hi, I also have just opened a cleaning service in Colorado and would like to know how or where do I go to get started! I would appreciate any help. Thanx and have a great DAY.

  13. Hello We’d like to get into foreclosure clean-up in North Florida. Could you send me any information on who to contact regarding this.

  14. We would like to find additional companies in the Colorado area that are looking for companies to do clean outs for foreclosures. We have found one company, but not enough work. Can you recomment any others (Fannie Mae and Freddie Mac middlemen are OK too!) Thank you!

  15. how do i get into this business? I know there is a huge market for cleanup crews and i have years of experience in construction work. i tried calling local banks already, but wonder if i am doing anything wrong? email me and lend me some advice if you dont mind. thank you. p.s, I live in the4 NoVA area.

  16. I am looking to start a cleanup and fix up business in Alabama.
    Can you send me info on:

    Who and how to contact Banks and mortgage lenders
    Rates for various projects
    How to begin

    Thanks

  17. yes I am trying to get my foreclosure cleanout biz up and running in maryland
    1 what type of businesses do I contact
    2 how do I price out the contracts

  18. WE HAVE QUALITY EXPERIENCED AND CAREFUL MOVERS IN THE NORTH BAY.
    LOCAL and LONG distance moving.
    TRAINED MOVERS, CAREFUL AND FRIENDLY, FREE ESTIMATES.

    We also do yard maintenance, clean up, hauling, and some home improvements.

  19. Contact realtors that specialize in foreclosures. Often they have a cache of homes. Pricing is a different ball of wax. It’s relative to sooooo many things… Book almost finished on this biz; I get so many questions about start-up. You can order it at http://www.foreclosurecleaningbusiness.com soon. I own Foreclosure Cleanup, LLC in Atlanta area. Good biz, good money, hard work. Email me for more info if you’d like: info@foreclosurecleaningbusiness.com.

    Cassandra
    Foreclosure Cleanup, LLC
    Book: http://www.foreclosurecleaningbusiness.com

  20. Hi I’m also looking to start a foreclosure cleanup business in the tidewater area in Va I would like information on how to get started,who to contact about contracts and the revenue potential

  21. I am in Central Florida I am a Commercial Loan Officer for a good size bank and my boyfriend and I have decided to get into the foreclosure cleanup. We have been buying and fixing them up but really hard to sell right now so we thought the cleanup would be better. How do we get started and how do we price it . need to know if we contact the bank or the realtor

  22. since you are a loan officer within a bank, you probably already have the connections to the REO department and the asset managers with the homes. I would start there.

  23. Start your own foreclosure cleaning business. This business is booming. Go to cleaningforeclosures.com to get all the information you need to know about starting your own foreclosure cleaning business.
    Make BIG MONEY NOW!!!!

  24. To all the foreclosure cleaning medics out there: How’s it going out there cleaning foreclosures? Are you all working the industry successfully? The challenge is waiting on banks to pay. Have you all considered using a factoring company? There are pros and cons to using factors. I talk about it in the book. Cash flow does NOT have to be a problem. Let me know how it’s working out for you. Many wishes of success!

    Cassandra

  25. I am looking to get started into the foreclosure clean-up business. I need some tips on how to get started – such as:

    1. Who to contact
    2. How to price a location
    3. What equipment is needed.
    4. How/Where do you dispose items.

    Thanks Jerome 205-542-6265

  26. I have several large trucks & are currently looking for extra work.Do you have any openings?I am willing to help out in any way.

  27. Hi,
    I am interested in doing foreclosure clean-outs,I have a cleaning & maintenance company called 2 in 1 Cleaning & Maintenance serving Md.,Penn.,W.V.,If there is any kind of contact information or advise to get me started in the right direction it would be of great help.
    Thank you
    Rick

  28. I currently own a cleaning business here in the Panhandle of Florida and work part time for someone contracted by the realtors to clean out foreclosed homes. How can I go about getting these contracts myself? I have all the equiptment, including the trailer, mowers, digital camera, etc.
    850-319-5433

  29. Im a state licenced contractor and im interested in forclosed clean up i also have master of all trades taping,painting,tile,master carpenter framing,and triming, roofing elecial,pluming,heating ,general labor bobcat,service

  30. I have a landscape company and have been interested in foreclosure cleanups for sometime. i just dont know who to contact??

  31. I would like more info like the others, my last house i bought for 50k and sold for 87k this was my own home and i put alot of work into it. I like to work with my hands, I just need more info.
    Thank you for this web page
    Stuart

  32. I am interested in doing business with banks or realtors in SWFL, Lee, Charlotte & Sarasota counties. I will do it all, haul away, house cleaning (inside & out), lawn maintenace, pool maintenance, pressure wash & repairs. I have all the tools and equipment.

    DoubleTeam Maintenance & Lawn Care
    Keith Davis
    941-626-1291

  33. hello I AM CURRENT OWNED CLEANING COMPANY I NEED INF WHO TO CONTACT HOW TO PRICE FORECLOSURE-CLEAN-UP HOW TO CONTACT BANKS MORGAGE CO. THANKS

  34. Hi, I am looking to start a foreclosure cleaning business in Tifton, GA and Metro Atlanta area.I need more information on who to contact,how to price locations.

    Thanks

  35. I’m going to start by answering your most commonly asked question for free, and get you work quick.
    Who to contact. Call me 740-497-9862 ask for Chris. We have the book on HUD regulations. We also have contracts with national companies. If you e-mail us aps.inform@gmail.com it might make the process a little quicker. A 5minute e-mail from me will be your best foot hold on this industry.

    We’ve delt with banks, RE agents, other Field Servicing companies,and we’ve waited up to 149 days for a check from a bank. We’ve taken classes and courses. We’ve became licensed bonded, certified and insured. We’ve hired experienced professionals and taught them the regulations to abide by in this market.

    When you’re tired of looking every where and not finding the right information, contact me and I’ll set you on the right course.

  36. I am looking to get started into the foreclosure/REO clean-up business. I need some tips on how to get started – such as:

    1. Who to contact
    2. How to price a location
    3. What equipment is needed.
    4. How/Where do you dispose items.

    Thanks Kevin

  37. Hi Everyone,

    My husband and I started a foreclosure cleanup & property preservation company about a year ago to supplement our income from the commercial cleaning company we’ve run for 11 years – so far we’ve been very busy. From my experience, this business provides great income potential but you have to be willing to put in long hours and go the extra mile for your customers (Realtors or Asset Management Companies).

    For example, I’ll be working 10 hours a day all Memorial Day weekend cleaning up two ridiculously junky and dirty properties in the middle of a majorly sketchy neighborhood. But you know what? At $1250 for the first one and $1450 for the second one, I don’t mind at all 🙂

    I’ve set up a blog with some good information on getting started in this business: blog.ForeclosureCleanupCash.com

    You can also feel free to email me directly if you have any questions (contact form on website)

    Les Tyler

  38. Need foreclosure cleanup pricing help? See Pricing Guide for Foreclosure Cleaning & Real-Estate Service Businesses: How to Price Jobs for Profit eBook — Our pricing guide was written to give new, smaller foreclosure cleanup business owners a better handle on pricing their jobs “for profit.” Read that again: FOR PROFIT.

    Pricing for profit is not hard; but it is somewhat of an art. If you don’t have pricing guidelines for your business to follow, your business will be open, and you will be busy as a bee, phone ringing off the hook, running all over the place, but you won’t be making a dime in profit.

  39. Hi Les, I live in the Fresno area in California or as we like to call it the San Joaquin Valley. I too would like to know how to get started in the Foreclosure clean up buissnes. I have two trucks, One trailer for hauling and a Lawn Service trailer for lawn equipment. I have been offered to be sub-contracted out with a garuntee of 3000.00 to 10,000.00 a month but I have yet to get that phone call on a start date. I have met with the company initaly and it sounded like me and my wife Stephannie were a go but now I cannot even get them to call me back. What can you suggest from hear for us ?
    Thanks for your valueble time in any help you may give us.
    Guy Dynge

  40. If you would like to find to Learn how to Start a Foreclosure Cleanup Business, Download the Foreclosure Cleanup-Property Preservation Training Guide at http://www.listbankrepos.com
    Go to the website and there is also a Free Top 5 Tips to Successfully Starting a Foreclosure Cleaning Business

  41. I am in Las Vegas ,Nv. And sadly this business is booming ,how in the heck do I go started in something like this, My parents were real estate agents and quite on top of there game for many years, inthis market they are now barely surviving. My husband is a journayman carpenter who has been in the union for many years and is now a part of the ugly layoff ,please contact me with any advice as to where to begin with this! Thanks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s