While the state remains in the Top 10 in the nation for home foreclosures, foreclosures have declined by 2% since September.

There was one home foreclosure filing for every 275 households in the state.

Michigan’s homeowner foreclosure filings were up by almost 45% from last year’s (2008) October’s filings.

Read more on Michigan home foreclosures.

Home Foreclosure Taking Its Toll: See video of how one homeowner is fighting back.

*****************************************

Report: Foreclosure Crisis Hits Blacks, Latinos‎

African Americans and Latinos are more likely to have high-rsk (subprime) loans; this puts them at a greater risk of foreclosure than whites.

When the foreclosure crisis first started, subprime loans were the main cause; now it’s unemployment. “The nationwide unemployment rate is 10.2 percent. For blacks, it’s 15.7 percent and for Latinos, 13.1 percent.”

The long-term impact of home foreclosure in black and Latino neighborhoods (eg, community cohesion) likely to suffer for years to come.

Read more on home foreclosures and its impact on minority communities.

*****************************************

Foreclosure Assistance Bill On Hold

The Preserving Homes and Committee Act, which is supposed to, in essence, force (nudge, cajole) lenders into working with homeowners to help prevent foreclosure, has stalled in Congressional committee.

The bill is slated to provide over $6.3-billion in funding for states and local governments to dole out as grants and subsidized loans to help prevent foreclosure.

It’s estimated that upwards of 6 million more home foreclosures are going to come onto the market in the near future.

Read more on this foreclosure assistance / loan modification help bill.

There are a lot of cleaning business forms for sale. However, as a foreclosure clean up business owner, it’s important to use “foreclosure forms” that cover sticky situations you will encounter when working with realtors and banks in a foreclosure-driven market (ie, like the one that exists now).

To that end, following are some clauses/stipulations your foreclosure cleaning contract should cover.

FORECLOSURE CLEANING CONTRACT TIPS

Contingencies: The contract you use for your foreclosure cleaning business should state that any monies due you are not contingent upon whether a deal closes or not. Any number of things can go wrong in a real estate transaction and you want to get paid whether the buyer closes or not. Having a contingency clause like this in your contract will ensure that you do and/or have legal recourse if you don’t.

Get it in writing: Get everything in writing. This is the foundation of all contract law because it avoids confusion. Even if you are “friendly” with all/some parties involved, have worked with them on many occasions; they are a family member; etc. Look at this not as an adversarial move, but quite the opposite – a meeting of the minds. Because, if you both agree, there should be no problem with it being in writing, right?

List Payment Terms: Remember to list your payment terms on your foreclosure forms (eg, payment due immediately upon completion, within 30 days, net 60, etc.).

Get Pertinent Info: This is something that can really save you a lot of hassle if you have a problem getting paid. When interacting with realtors, remember to get their broker contact information as well. Why? Because realtors operate under the umbrella of a broker; it’s law, they have to.

If you have a problem getting paid from a job, you can contact the broker who may be able to take further action.

Other pertinent info to get: The address of the subject property on the form, estimated time of job completion, and a host of other important details.

PROTECT YOUR (ASS)ETS

In today’s foreclosure-ridden market, commissions are few and far between for many realtors. This affects related interests as well, eg, contractors, banks, appraisers, etc.

If you don’t have a solid foreclosure cleanup contract specific to this industry in place, you could literally be working for nothing because you don’t have your I’s dotted and your T’s crossed.

The Beauty of Foreclosure Forms and Contracts

Real estate professionals (agents, mortgage brokers, banks, contractors, etc.) are all accustomed to working with written contractual agreements. They expect to be presented with them. So when you have one, it makes you look more professional – and it protects your foreclosure clean up profits. Of course, this article is not intended to be a substitute for legal advice regarding your foreclosure cleaning business.

P.S.: Business Opportunity: Learn How to Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning biz owner makes up to $40,000/wk.

P.P.S.: Found this post informative? Follow Foreclosure Business News on Twitter.
Learn more about real estate forms in the video below.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted on your blog, website, in your newsletter, etc. with the following, in full (including live links): Learn everything you need to know about what how to start a foreclosure cleaning business at foreclosed http://Start-a-foreclosure-cleanup-business.com.

A common fear for homeowners facing foreclosure is that their wages will be garnished. This can cause added stress because these are already difficult financial times. Following is some info that may allay your fears as you go through this difficult process.

And the answer is . . .

No, as you go through the home foreclosure process, your wages cannot be garnished. The legalities behind this is that the home itself is pledged as the collateral for the loan (mortgage) – not your wages or any other property. So while you’re in foreclosure, your wages are safe from garnishment.

But, you’re not out of the woods.

What will happen moving forward if you are not able to become current with your mortgage is that your home will be sold. You have several options here. One of the most common is the deed in lieu of foreclosure.

Home Foreclosure: What is a Deed in Lieu of Foreclosure?

 It’s when the you (the home owner) signs over all rights to the home back to the lender — in lieu of allowing them to foreclose on the property. You can do a deed in lieu with recourse, or without recourse. You could be held responsible for the balance (deed in lieu with recourse), depending on what you work out with your bank/lender.

What you want to get from your lender in these circumstances is an agreement for a deed in lieu without recourse. This means the lender can’t come after you for any balance due.

Yes, your credit will suffer if you proceed with this option (with or without recourse). But at this point, who cares. Your credit is probably already in the dumps anyway.

Back to your wages being garnished . . .

Wage Garnishment & Home Foreclosure: Your Rights When Dealing with Creditors

Many unscrupulous lenders will use the threat of wage garnishment to try to bully you into continuing to make mortgage payments – even when you can’t afford it. Don’t fall for it.

And by the way, this tactic is patently illegal.

Bone up on your consumer rights when it comes to debt repayment. They vary from state to state. But across the board, creditors can’t bully you, lie to you or threaten you on any level. Remember this fact when dealing with creditors – whether you’re discussing wage garnishment during the foreclosure process, credit card debt or any other kind of debt.

Live Rent Free!

P.S.: Business Opportunity: Learn How to Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning biz owner makes up to $40,000/wk.

Learn more about foreclosures, deed in lieu of foreclosure and wage garnishments in the video below.

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.

Q: What type of insurance do I need to start a foreclosure cleaning business?

Q: What type of insurance do i need or should i get for foreclosure clean ups?

Q: Can anyone send me info on how to start a cleaning buisness of foreclosed homes. What insurance and permits that I would need?

Q: . .. . can someone please let me know what kind of license, bond and insurence i would need to start a Foreclouser cleanup business?

Q: Where would I find out about getting insurance for my foreclosure cleaning business?

Q: Is a business license and insurance needed to clean theses homes?

Foreclosure cleaning insurance, insurance, insurance . . . these are actual questions we’ve received and others that were posted on various chat boards about foreclosure clean up business insurance. It’s one of the most frequently asked questions about this business.

What Type of Insurance Do You Need for Your Foreclosure Cleaning Business?

The short answer is, it depends.

General advice on getting foreclosure cleaning insurance: Each business owner’s needs will be different, depending on the services they offer. Speak with your insurance rep. If you don’t have one, call some of the biggies (eg, Allstate, State Farm, etc.). Tell them about the type of business you’re setting up, the services you’ll be offering and who’ll be doing the work. They’ll tell you exactly what you need.

SPECIFIC advice on foreclosure cleaning insurance:

What type of insurance, how much coverage? At minimum, you will need liability insurance coverage for your business and you will need coverage for your automobile(s). If you have employees, you will need to carry workmen’s compensation.

But each area of the country is different, each county has its own policies and procedures, so make some calls to your county clerk’s office, your local Small Business Administration (“SBA”) and insurance agencies that service your area to make ensure you are amply covered with insurance and properly licensed. [Source: Do You Need to Be Licensed and Insured to Start a Foreclosure Cleanup Business, by Cassandra Black of Foreclosure Cleanup, LLC]

Foreclosure cleaning insurance and licensing — and much more — is discussed in the #1 selling ebook, How to Start a Foreclosure Cleanup Business. Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

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.

FORM #1: Foreclosure Cleanup Business All-in-One Estimate & Contract Form

The Foreclosure Cleanup Business Estimate/Contract Form is an all-in-one form designed to cut down on paperwork. Most foreclosure cleaning businesses have separate forms, eg, an estimate form, a contract form, an invoice form, etc.

3 Forms In One — And Environmentally Friendly!

This form eliminates the need for this, acting as an initial estimate form, then becoming a formal contract upon execution by both parties. And finally, it can act as a final invoice for the client. This cuts down on a LOT Of paperwork — which not only eliminates headaches for you, but is kind to the environment as well.How cool is that!

FORM #2: Foreclosure Cleanup Business All-in-One Estimate & Contract Form

The Foreclosure Cleanup Change Order Form should be used when the scope of a job changes (eg, more work is required; the specifications of what is to be done changes; etc.). This form keeps you and your client “on the same page” so to speak, about the additional (or lessened) duties you are expected to carry out that differ from what you were initially hired for.AND, it protects you if you ever have to take legal action for nonpayment, for example.
###

Like this post? Follow us on Twitter.

BUSINESS OPPORTUNITY: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family. How lucrative is this business? Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

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.

The other day, I ran across an interesting question on the Orlando Sentinal online newspaper site. The reason it caught my eye is that a lot of home owners who are in foreclosure (or close to it) may be wondering about it.

The reader asked:

As a result of a foreclosure, I am about to have a default judgment against me. I am also about to receive a cash settlement from a personal-injury case resulting from a serious injury that I suffered. Can the mortgage holder who issued the default judgment be able to attach my settlement?

And the short answer is, yes. Read the entire home foreclosure / default judgement answer here.

Live Rent Free!

Learn how to get a 1-3 or even a 6-12 month break from making any mortgage payments by just a simple series of phone calls (to the right person) followed by a faxed form (form included).

Like this post? Follow us on Twitter.

BUSINESS OPPORTUNITY: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family. How lucrative is this business? Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

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.