Home Foreclosures Threatening the Stability of the FDIC?

“Since January 2005 over two million homes in USA have been foreclosed, that’s about 1.7% of the total housing stock.” {Source: SeekingAlpha.com}

And, who’s taking all of these losses — the banks. Is this causing the FDIC to fail? Not likely, but it IS putting a strain on it.

What the above article highlights is that the home foreclosure crisis is nowhere near over. And, the impact of it has been felt by every sector — from individual homeowners to banks to small lenders to the construction industry.

We’ve got a ways to go before the crisis rights itself folks.

P.S.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

P.P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

 

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Foreclosure Cleanup: Why Winterization is a Lucrative Service to Offer on Foreclosed Homes

If you’re a property preservation, real estate services, plumbing or foreclosure cleanup company, winterization is a hot service to offer to banks and other lenders who have foreclosed homes. This is especially true right now.

 

Winterizing More Than a Hundred Homes

 

According to the October 2008 KAALTV article, “Winterizing Foreclosed Homes,” in Austin, MN a local plumbing company winterized more than 100 homes, and expected things to get busier as foreclosures continue to escalate.

winterizing-foreclosed-homes

Why Banks Like for Foreclosed Homes to be Winterized

 

When a home is foreclosed on, it can sit vacant for months – even over a year in this economy. When a home sits vacant, especially during the winter season, pipes can burst causing water to flood.

 

Even if the water is turned off, the water that sits in the pipes can cause floods or damaging leaks. And, what follows floods and/or water damage? Mold.

 

Now imagine this sitting for weeks or months with no one being aware of it.

 

This is why lenders pay plumbing companies, property preservation companies, real estate services enterprises and/or foreclosure cleanup companies to winterize properties. In the long run, it costs them less money.

 

If you’re a foreclosure clean up company, winterization is an easy service to offer. And, it can be quite lucrative because it is one of those services that banks don’t hesitate to pay for, unlike some other services.

 

So, you may be wondering, exactly . . .

 

What Is Winterization?

 

Basically, winterization is protecting a home while it is unoccupied for long periods of times. A lot of this has to do with preventing water from entering a home and pipes from bursting. Another equally important component is dealing with the heating and cooling system. Following are some things that should be done to a home during the winterization process.

 

Shut Off Water: This should be done at the main valve or at the inlet to the meter. Once the water is shut off, the meter should be capped – preferably by a professional – so that it can’t be turned back on.

 

Drain Water Heater: Remember, even if the water is turned off, if something happens, water left in pipes or a water heater can still cause flooding.

 

Drain Pipes: For the same reason as above, this should be done.

 

Open Faucets: This allows them to drain completely.

Drain Toilets: Be sure to get rid of any excess water left in the tanks; wipe them dry.

 

Turn Off Heating System:  If you have an electric system, make sure it’s turned off at the circuit breaker. This prevents the burning up of heating elements.

 

Turn Off Gas & Electric: Call your local electric company to make sure this is done.

 

Check for Faulty Faucets and Broken Pipes: If damage is found, make sure it’s repaired so that when water is turned back on, there are no leaks.

 

This is by no means an exhaustive list, but it gives you an idea of what goes into winterizing a home.

 

HUD Payment Guidelines: Home Much Do Banks Pay for Winterizing a Foreclosed Home

 

If you’re a foreclosure cleaning company and want to offer this service, what you will be paid depends a lot on what HUD pricing guidelines are in many cases. This is because many bank-owned properties fall under HUD.

 

For example, in the state of Georgia, HUD will pay anywhere from $100 to $460 for winterizing a home, depending on the type of heat it has (ie, dry heat, steam heat, wet/radiant heat).

 

As you can see, this can be a very lucrative service for any foreclosure cleaning service to offer – and it shouldn’t take more than a few hours (or less) for a skilled professional to do.

 

P.S.: Learn more about how to price foreclosure cleaning jobs.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted with the following, in full: Learn everything you need to know about what to charge for winterizing foreclosed homes — and how to price foreclosure cleaning jobs in general — in The Pricing Guide for Foreclosure Cleaning & Real-Estate Service Businesses: How to Price Jobs for Profit, which can be found at http://Start-a-foreclosure-cleanup-business.com.

Home Foreclosure and Your Credit: Details of the Mortgage Forgiveness Debt Relief Act of 2007

If you lose your home to foreclosure, it can have a significant impact on your credit. There are tax consequences to consider as well. Most homeowners are in a fog when it comes to foreclosure; they don’t fully realize the impact it has on their debt load moving forward.

The  Mortgage Forgiveness Debt Relief Act of 2007 lays out the consequenes of home foreclosure, ie, how it affects your financial future moving forward.

P.S.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

P.P.S.: Foreclosure Cleaning Pricing: Learn how to price foreclosure cleaning jobs to make the most money.

Copyright © 2009 Yuwanda Black for Foreclosure Business News