How to Add "Commercial Trashouts" to Your Foreclosure Cleanup Business

According to an article from DS News, an in formative real estate publication that focuses on foreclosure trends and other aspects of the mortgage default servicing industry, $23 billion dollars in commercial mortgages will come due this year. This translates into the fact that right at two thousand commercial mortgage loans are set to mature over the next year.

Of those, over thirty percent will likely NOT pass their refinancing tests, according to Fitch Ratings, a global rating agency that focuses on data, research and credit opinions for the world’s credit market and investors.

Commercial Business for the Trashout Industry

What does this mean for the cleaning foreclosures industry? In a word, PROFIT!

A foreclosure cleanup business provides services ranging from interior and exterior repairs, to maintenance, debris removal, securing properties via the boarding of windows and doors and changing locks, to occupancy and vacancy inspections, painting and more. Much of the banter around the foreclosure cleaning industry focuses on residential trashouts and maintenance; however, with the unfortunate dose of commercial mortgages scheduled to head for trouble this year, foreclosures cleaning on the commercial front can be a solid outlet for business contracts for new and existing foreclosure cleaning enterprises.

Commercial trashout and cleanup accounts can stem from office buildings, daycare centers, gas stations, retail stores, restaurants, multi-unit apartment buildings, and similar real estate.

Less Competition in Commercial Foreclosure Clean-outs

Commercial foreclosure cleaning accounts will have less competition because most businesses in the industry focus on residential trashouts.

Simple to Add Service to Existing Business

A foreclosure cleanup business owner can add commercial foreclosure clear outs to their list of services easily by simply ramping up on equipment and supplies and targeting professionals who handle commercial foreclosures.

For example, as a trashout business owner, start by compiling a list of commercial real estate brokers in your geographical area and reach out to them. Also, do a little digging and create a list of commercial lenders in your city and contact them about your cleaning foreclosures business. Use the term, “Commercial Foreclosure Cleanup” in your literature and conversations with the professionals you contact.

Also, by browsing business sections of newspapers to see what’s going on in the industry in your own town and keeping an eye on real estate multiple listing services online, you can fast become familiar with commercial foreclosures coming down the pipeline.

Win Mind Share and Ask for “the Sale”

Stay in touch with the listing brokers and agents of these properties. Win “mind share” by reaching out to them consistently with professional material and following up with a phone call to see if they have any questions about your services — and to see if they need you to give an estimate on a commercial property. Always ask if they have a property needing an estimate. Ask for “the sale” every time, at the end of every conversation.

Network for Consistent Business with Larger Payouts

Also, consider networking at Chamber meetings, business breakfast meetings, realtor gatherings, etc., and announce this new commercial division of your cleaning foreclosures company.

Commercial transactions usually have a bigger payout, are more formalized, and can lead to consistent work once you’re in good with a broker or lender.

How Commercial Differs

Note that commercial cleanouts will differ from residential cleanouts in that you will likely be dealing with larger spaces, smaller timeframes, and likely addendums to any contract you may present for signature. Also, you may have to work around security systems (i.e., a business being foreclosed on may be housed in a large commercial building, and your entry and exit may have to coordinate with front lobby security).

Further, you may have to clean industrial-sized equipment. For example, in cleaning a residential home, you’ll be accustomed to cleaning standard-sized stoves, dishwashers and refrigerators. However, in handling cleaning and trashout duties for say, a restaurant, you’ll be working with restaurant-sized freezers, refrigerators, stoves, hoods, and the like. This means your cleaning solutions will need to be stronger and you’ll need more of them.

Be Aware of Environmental Rules

Also, in handling commercial cleanouts, you may have to dispose of materials you won’t necessarily come across in a single family home. For example, with restaurants, you may have to dispose of tubs of cooking grease. Simply review environmental rules to ensure you’re following proper procedures in disposing of materials that may be hazardous to the environment.

Roll-off Container vs. Vehicle

Another factor in working with commercial trashouts is the sheer amount of furniture and materials that may need to be removed from a unit. For example, if you’re cleaning out a daycare center, you may have desks, chairs, books, file cabinets full of papers, toys, mats, etc. to dump. Ensure your vehicle is large enough to handle the job, or consider renting a roll-off container for the yard.

Lucrative Aspect of Your Business

There are several factors to consider if you decide to venture into commercial foreclosure cleanup. But with billions of dollars in commercial mortgages maturing this year alone, it can be a lucrative aspect of your foreclosure trashout enterprise.

Much success to you on the commercial front of the mortgage services industry!

Foreclosure Woes

If your mortgage is at a very large bank, you have made a mistake! Trying to work out a solution to your deficiency is very complicated and the service is lousy. Your foreclosure woes have begun!

A friend was delinquent with her mortgage payments. She had owned her property for 37 years. The bank filed the papers to put the property in receivership (foreclosure action) to the bank. The friend immediately phoned the bank to see if there was anything she could do. She worked out a plan with the bank to reduce her payments and followed through for 13 months of on-time, full, adjusted payments. When she attempted to make the 14th payment, the bank returned it.

One day, she received a notice that her home was scheduled for a “Sheriff’s Sale.” Puzzled by the notice, she immediately phoned the bank and was told that they did not need to file any more legal papers, since they had previously filed the necessary papers (before she made the arrangements) and the application for Obama mortgage assistance had been rejected. What this means is that the deficit, the difference between payments under existing mortgage and the adjusted payments while the Obama mortgage assistance modification application was awaiting approval or rejection, was due in full when the application was rejected. Example: Payment under existing mortgage, $1100; payment under Obama mortgage assistance, $700. Rejection would mean $400 X 13 or $5,200 would be due immediately and there could be fees attached. During the 13 months, no statement showing her account was ever provided by the bank. She was advised that when a mortgage is in default, the bank has no legal obligation to provide a statement of the account.

The bank purchased the property at the “Sheriff’s Sale”. Did you know that following a “Sheriff’s Sale” and confirmation of the sale, the bank (buyer) only must give you 48 hours to vacate? Furthermore, you will have all these strangers entering your property to complete various tasks on behalf of the lender/buyer (the bank).

People all around me are losing their homes due to foreclosure. It is almost a repeat of the Great Depression. The exception is that in the Great Depression, saved money placed with banks was also lost. Today, bank accounts are insured by the FDIC.

What brought this dilemma on? My thoughts on this are that credit was “too easy”! On the lender side, banks and mortgage companies were willing to be liable for too much mortgage. On the buyer side, a lack of concern and understanding of how much debt was being taken on. No one planned on losing a job or other circumstances, not being able to meet those mortgage payments. You always want the lowest payment possible at the lowest interest rate. I personally experienced this. When times are tough, you need to work closely with your lender. In 1946, a family member, who owned with a mortgage loan, sometimes only made the interest payment of the mortgage due to hardship. They did not lose their property but many years later, paid it off. Could this be a solution to the present day foreclosure woes?

The Obama Making Home Affordable program (loan modification program) is a complete disaster. Those who really need the help are not getting it. A recent conversation with my banker revealed the seminars attended by the financial employees of mortgage lending institutions left them with a big blank trying to understand what the heck it is supposed to do. The mortgage lending firms are less than helpful to the customers who have or will be very shortly losing their homes. One application was returned reject because the owner’s income was too low. Isn’t that what a loan modification should be considering when reviewing need? Very few people have been approved under the Making Home Affordable program.

If you are having a problem making your mortgage loan payments, the best thing you can do is visit your lender in person and suggest that maybe you could just pay the interest on the loan for a period of time.

Obviously, not being able to pay your mortgage payment is a very serious situation and should be avoided at all costs, even to the point of putting the property up for sale. You will not see a penny of your equity should you allow your lender to foreclose. It is also very important that your mortgage lender is local.

5 Ways to Stop Foreclosure Immediately – Don’t Let the Bank Destroy Your Family

There are various ways to stop foreclosure immediately, but the most common way homeowners can prevent foreclosure is by using the loan modification process. During this time of financial unrest, getting out of a bad financial situation is not really unheard of. Families today have options and lenders are willing to work with your family to keep you in your home. The following ideas could help keep the stress off your shoulders and the creditors and loan collectors off your back.

1: Refinance your original loan. Money lenders will consider foreclosure refinance loans if they feel you will not neglect making payments to them. Qualifying for refinancing is tough and the requirements are strict. The requirements include equity from your home and a steady income. Although the payments may turn out to be higher some homeowners prefer to start off fresh and use refinance as one of the ways to stop foreclosure of their family home. But let’s face it; there has to be an easier way.

2: Selling to a relative or close friend to prevent foreclosure may be your only way out temporarily. You will be out of your financial situation and be able to have them carry you for a while until you land back on your feet. You can lease or rent back the property from them until you are financially able to buy the property back. But if you don’t feel safe or trusting with the people you’ll be working with; this option may turn into a way for family or friend to make a quick profit selling your home at a reduced rate.

3: Try bankruptcy to stop a foreclosure in progress, but this can become an expensive alternative. The amount of payments which need to be made to satisfy the creditors and bankruptcy costs make this an option for those who have a large amount of disposable income. Let’s face it if disposable income is available your family wouldn’t be in this situation.

4: One of the easiest ways to stop foreclosure immediately is to sell the property outright before the foreclosure has time to proceed. If you can get enough for your home paying off your debt in time will stop the foreclosure from proceeding but will leave your family looking for a new place to live.

5: Work with an online loan modification service to prevent or stop a foreclosure from going through. This type of service will work with your lender to help rework your arrangement in order for your family to keep their home. The banks would prefer to get paid and not have to deal with trying to sell your home. This option will at the very least help you to repair your credit and hopefully prepare you to purchase another home in the future.

100% Free Foreclosure Listings Are Available

One hundred percent free foreclosure listings are available in certain places if you look hard enough. What you will likely find if you are looking for foreclosed properties is that the state of Nevada currently has the highest percentage of foreclosures in the nation. Of course you may only find that if you are interested in deeper economic questions and the variables that caused the foreclosure crisis within many states, counties and municipalities. As you can surmise by looking at some of the free listings. Many of the foreclosures that happened in Clark County, Nevada were probably caused by a downturn in the casino world. The gambling empire’s struggles were not just felt by giants like Steve Wynn and Sheldon Adelson they were felt by everyone who worked in the casinos-from the dancers to the card dealers to the janitors.

Because of the high cost of Las Vegas real estate along with the general high costs involved with simply living there, you tend to see some very prices within the two hundred and three hundred thousand dollar price range. It was because of prices like these in this tough housing market that many of these houses ended up on the free foreclosure list. The reason some of these houses in Vegas went into foreclosure was because they happen to be right near the strip where property taxes and uptake costs tend to skyrocket. Many workers who were fairly well paid as members of many different unions got laid off and they couldn’t maintain the house payments. That is how these homes ended up on the free foreclosure list.

Within many of these free search engines you will be able to locate school information about academic institutions near these foreclosed homes. This is of course good if you are looking to buy a home and you happen to have children. Believe it or not within these free search engine results for foreclosed properties you can also run a credit check upon yourself. This is important so you don’t end up in the same situation as the person who had the home foreclosed upon them.