Home Foreclosure Crisis Deepens: 11 Million Homeowners at Risk of Losing Their Homes

According to today’s MSNBC report, Foreclosure mess will take years to clean up, the bottom of the home foreclosure crisis is not within sight, as we discussed in yesterday’s post here. And, if the numbers mentioned in this article are to be believed, it’s worse than many real estate experts are saying. The article notes:

Without a change in government policy, some 11 million borrowers are at risk of losing their homes, according to a research report earlier this month by Amherst Securities, which advises investors in mortgage-backed securities. That’s roughly one-fifth of the 55 million mortgages outstanding on the 80 million homes in the U.S.

Other insights from this piece include:

Many homeowners are at risk of foreclosure because of lost jobs (no surprise here);

HAMP, the government’s prevent foreclosure program, hasn’t helped nearly as many as it should/could have; and

Many lenders are stringing homeowners who want to stop foreclosure along (this is where a LOT of the problem lies, in our opinion).

Our feeling is, they want to see if things (home prices/the economy) will improve. If they start to, then lenders won’t have to permanently modify a lot of home loans – which is exactly what many who are trying to stop foreclosure need.

Home Foreclosure: What This News Means for  “the Average Joe” Homeowner

In short, the doo doo of this home foreclosure crisis is getting deeper folks. And no one seems to be willing (they’re able, just not willing) to consider what “the Average Joe” who is facing foreclosure needs.

Related Posts

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

Home Foreclosure News: This Year, the Number of Households behind on Their Payments Exceeded 8 Million

Home Loan Modification: 65-75% of Loans Modified via HAMP (the govt’s Home Affordable Modification Program) Likely to Go Bad

Home Loan Modifications via Government’s “Prevent Foreclosure” Program Go Up, But Will It Help Stem the Tide of Foreclosures?

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosures Haven’t Hit Bottom Yet: 6.7 Million Borrowers Delinquent or In Foreclosure

It seems that the same shoddy practices that helped the nation to get into the home foreclosure crisis is the same one that’s now keeping banks from dealing efficiently and effectively with foreclosures.

Home Foreclosure Crisis: We Haven’t Hit Bottom Yet

According to the Los Angeles Times Article, Figuring Out Foreclosures:

And with an estimated 6.7 million borrowers delinquent or in foreclosure, the inventory of houses for sale is likely to grow.

Many homeowners are fighting back though, arguing that they’re being illegally foreclosed on. Many are citing lender “procedural errors.

This is stalling the real estate market’s recovery, which is why the bottom (which many experts thought we’d hit) may still not be in sight.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.
Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Get Foreclosure Cleaning Jobs: A Grassroots Marketing Strategy That Works

Foreclosure cleaning jobs are out there, but it takes some elbow grease to bring them in, especially if you’re in a competitive market in high-foreclosure states like Florida, Georgia, Nevada and California.

Following is one grassroots marketing strategy that can pay off big – if you put in the effort.

how-to-market-foreclosure-cleaning-biz

Chamber of Commerce Meetings: Most small business owners never think to visit their local Chamber of Commerce. But, it’s where the heart and soul of your community’s small business is — because these are the small business owners that make up your city, state, town.

You’ll find real estate agents there (who can give you business);

Insurance agents there (who can give you business);

Plumbers there (who can refer you business);

Lawn care company owners (who can throw business your way);

General contracting firm owners (who can give you business);

Etc.

The best part of networking face to face like this is that these business owners become friends/well-known acquaintances) if you decide to join your chamber and attend regularly. And, these friendships can turn into referrals of foreclosure cleaning jobs for years to come.

It’s quite possibly the number one overlooked way to get foreclosure cleaning jobs and contracts. And the best part is, you’ll probably be one of the only foreclosure clean up companies in the room. In this market, just think how much work you can get this way.

How Much Does It Cost to Join a Chamber of Commerce?

Most are in the $100 to $500 per year range. It varies depending on the location and how many members a particular chapter has. But, many will let you attend a few meetings for free before you have to join. Just one foreclosure cleaning job landed from this kind of free networking can pay for your membership many times over.

And, it’s also where the big business owners in a city networks as well. You’ll find bank vice presidents, representatives from your local power company, as well as from big telecommunications companies.

Note: Many selling foreclosure cleaning products and services will make it seem like jobs and work orders are just going to fall out of trees. They’re not. Sure, foreclosure cleanup is a hot business opportunity. But just like any business, if you don’t market it, you’re not going to get work.

But if you put in the work, what a profitable, evergreen business foreclosure clean up can be – in this foreclosure crisis – and beyond.

Learn more about how to market your foreclosure cleanup business.

P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 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 Cleaning Entrepreneurs: How to Market Your Business beyond the Foreclosure Crisis

Many who started foreclosure cleaning businesses got in because it was a “hot” small business opportunity. Ok, great. But, what happens when the home foreclosure crisis is over? Even though we’re in the fall of 2010 as of this writing and it will probably rage on for at least the next 24-36 months, this bear of a real estate market will come to an end. Then what?

 

The fact of the matter is, there will still be plenty of business because, as I’ve stated in many articles before, as long as real estate is bought and sold, the services that foreclosure clean up businesses offer will be in demand. It is truly an evergreen business.

 

 

But, like anything, it’s how you market that will make the difference. Following are a couple of things you can do right now to prepare your business for a different real estate market so you always have jobs coming in.

 

Foreclosure Cleaning: 2 Ways to Keep Jobs Flowing In

 

Use Transitional Wording: What I mean is, even if your business is named, XYX Foreclosure Clean Up, start referring to it as a “Real Estate Services & Maintenance Business” every chance you get. For example, on your website, on your blog, in flyers that you had out, on your invoices that you submit, etc.

 

This will get clients to start thinking of you as more than “just” a business that cleans foreclosed properties, but one that provides a whole range of services they might need for all types of properties.

 

Set Up Mirror Websites: What I mean by this is, have a foreclosure cleaning website, but also put up a “Real Estate Services & Maintenance” website.

 

It can literally be the same website, but with less of an emphasis on servicing foreclosed properties, and more of an emphasis on servicing all types of properties, eg, homes for resale, commercial buildings, apartment buildings, etc.

 

So, for example, on your “Foreclosure Cleanup” website, you may address your foreclosure services firs. But, on your “Real Estate Services & Maintenance” site, you would give this less prominence by maybe moving it to the bottom, saying something like, “We also service foreclosed homes and commercial properties.”

 

Transitioning Your Foreclosure Cleaning Business

 

It’s all a matter of perception. It’s what Madison Avenue advertising powerhouses use all the time to make us want $300 jeans as opposed to a $30 pair of Levi’s. So borrow the mindset of the “big guys” to keep your foreclosure cleaning business in the green (dollars that is).

 

Learn more in How to Market Your Foreclosure Business.

 

Related Posts on How to Market Your Foreclosure Cleaning Business

Foreclosure Cleaning Marketing Advice: How to Use a Simple Call Intake Form to Get More Jobs  

How to Get More Foreclosure Cleaning Jobs with Postcards

Foreclosure Cleaning Business Advice: One Sure Way to Make Your Company Stand Out from the Competition

Foreclosure Cleanup Business: How to Start Quickly and Cheaply While Working Fulltime

Foreclosure Cleaning Jobs: Why Landlords Are Fertile Marketing Ground for Foreclosure Cleanup Businesses

P.S.: Like this post? Follow Foreclosure Business News on Twitter. 

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

 

How Halt on Foreclosures Will Affect Foreclosure Cleanup & Other Real Estate-Related Service Businesses

As we discussed here yesterday, some of the nation’s largest banks have stopped foreclosure proceedings – for the time being – in all 50 states. If you own a foreclosure clean up or other real estate related service business, eg, plumbing, lawn care, painting, locksmithing, etc., you may be wondering, “What impact is this going to have on my business?”

 

In fact, a colleague who is in the business said that she received this question via her blog just a few days ago. Here’s how we see it shaking out.

 

more-foreclosure-cleaning-jobs-on-the-way

 

Foreclosure Clean Up & Other RE Services Business Will Continue to Thrive

 

The reason is simple, the longer banks have to hold onto properties, the longer they will have to be maintained. Yards will need to be cut and maintained, locks will need to be changed, gutters will need to be cleaned, winterization and other interior and exterior services will have to be done, etc. And, these are exactly the types of services a full-service foreclosure cleanup business can handle.

 

“But,” you may be thinking, “what happens when all of this is done? Will there still be foreclosure clean up work?”

 

And the answer is yes, because until a home is resold (or rented), it needs to be maintained to keep it from falling into disrepair. Furthermore, this doesn’t include handling “mishaps” like vandals, vagrants and thieves causing damage to a property. And, this happens a lot.

 

In fact, lenders have been known to tear a property down instead of maintain it because it’s cheaper to do so. An article in the Wall Street Journal spoke to this issue, noting:

Victorville city officials said the bank told them the cost of finishing the development would exceed what they could sell the homes for. . . . The bank also faced escalating city fines as vandals and squatters took over the sprawling housing project, leaving behind graffiti and drug paraphernalia, . . .

This is rare though, but it does illustrate how much upkeep is needed when a property is not occupied.

 

Foreclosure Cleaning is an Evergreen Business

 

The bottom line is, as long as homes are bought and sold, there will be a need for the types of services that foreclosure clean up businesses (and other RE service type businesses) provide. That’s what makes it an evergreen business. No matter what the housing market is doing, properties still need to be maintained. It just so happens that now, they’re needed more than ever. But, you have to be proactive in getting the work.

 

As the foreclosure cleaning business owner who landed 10 jobs from one property preservation company illustrates, if you put in the effort, the work is definitely there. But, you have to go after it.

 

One Thing to Keep in Mind When Marketing Your “Cleaning Foreclosures” Services

Think beyond the foreclosure crisis. Build your business for the long haul and target clients who can give you jobs in good real estate markets, and bad. We’ll talk more about this in a post tomorrow.

 

Start a Successful Foreclosure Cleaning Business – Right from the Start!

Get everything you need to start a successful foreclosure clean up business, eg:

foreclosure1 

Learn how to market your foreclosure cleaning business;

 

Learn how to price foreclosure cleaning jobs to make the most profit

 

Register with HUD to get foreclosure cleanup contracts;

 

Learn what type of insurance you need for your foreclosure clean up business;

And more.

P.S.: Like this post? Follow Foreclosure Business News on Twitter. 

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure News: Banks Halt Foreclosures in All 50 States

Unless you’ve been under a rock the last few days, you’ve probably heard about major banks halting foreclosures in all 50 states (ie, Bank of America and a few others). Why are banks stopping foreclosure proceedings?

banks-halting-foreclosures-nationwide

As one article puts it, it’s a a “technical” paperwork problem with . . . mortgages with improper documentation.”

Basically, because there are so many foreclosures happening now and in the recent past, banks have been accused of illegally foreclosing on properties by not having all of their paperwork t’s dotted and i’s crossed (eg, not using a notary).

While many believe that many of these foreclosures will eventually happen anyway, some banks are trying to get ahead of possible legal actions many might bring and get their houses in order before proceeding with any more forelosures.

After all, many homeowners have simply abandoned their properties and would have faced foreclosure anyway. As the article linked to above states:

The average borrower that Chase has foreclosed on, these people added, has not made a payment on the mortgage for about one and a half years — a figure that they say is also consistent with the industry.

What Does this Halt on Foreclosures Mean for the Average Homeowner?

It means that many may have a chance to save their homes. One homeowner who wrote in to this blog said that she’d actually gotten permanent modification. Her mortgage payments were reduced from $1,578 per month to just over $900. And her new interrest rate? An eye-popping 2%.

But, it wasn’t all roses. Her mortgage was extended by 10 years — from a 30 to a 40 year. The main thing is though, she said, that she could keep her home and her payments were made affordable.

For others who might not be able to stop foreclosure or get a permanent home loan modification, it may mean financial “breathing room.” Many who find themselves in this type of limbo are not making mortgage payments and/or had stopped before this whole thing happened. Homeowners like this may be squirreling away cash to weather what is possibly going to be a move in a few months.

So it can be good or bad news; it all depends on which side of the home foreclosure equation you’re on.

Related Posts

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

Home Foreclosure News: This Year, the Number of Households behind on Their Payments Exceeded 8 Million

Home Loan Modification: 65-75% of Loans Modified via HAMP (the govt’s Home Affordable Modification Program) Likely to Go Bad

Home Loan Modifications via Government’s “Prevent Foreclosure” Program Go Up, But Will It Help Stem the Tide of Foreclosures?

Home Foreclosures: Why So Many Homeowners are In Limbo When Trying to Refinance or Modify Their Home Loans Now

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
foreclosure1
P.P.S.: Like this post? Follow Foreclosure Business News on Twitter. 
Copyright © 2010 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 Jobs: New Biz Owner Lands 10 Jobs from Property Preservation Company

Congrats to new foreclosure cleanup business owner (“AZ”) who sought consulting advice from us. He received ten work orders from a property preservation company with more work down the pipeline.

 

He sent the following email to share his good news:

 

Cassandra:

 

I wanted to take this time and THANK YOU  for all your assistance and your ebook. I am pleased to announce that we have signed on to be a primary vender [sic] for a major property preservation company.

 

We have been issued 10 workorders to start with pleanty [sic] more to come. Thanks again.

 

In a follow-up email, we reminded AZ to read our previous editorial about what to expect when you start getting foreclosure cleanup job orders.
 

Have Questions about the Foreclosure Clean Up Industry? If you have questions about the industry, send an email to foreclosurebiz[at]hotmail.com and we’ll get back to you. Note: It may take a bit (as we get tons of queries), but we try to get to almost all of them within a few weeks.

 

Related Posts

Foreclosure Cleanup Money: HUD Ponies Up Another $1 Billion to Help Clean Up, Clear Out and Rehab Foreclosed Properties

Foreclosure Cleanup Business Advice: What are “Assuming Institutions” & How You Can Make Money from Them

Why Bank Failures Can Mean Subvending Contracts for Foreclosure Cleanup Businesses

Foreclosure Cleaning Contracts: Learn How to Register Your Business w/HUD & Other Gov’t Contracting Agencies

Foreclosure Clean Up: Earn $42,000 Just by Adding Property Inspections to Your Service List?

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

Foreclosure Cleaning Jobs: Why Landlords Are Fertile Marketing Ground for Foreclosure Cleanup Businesses

P.S.: The How to Get Paid for Every Foreclosure Cleaning Job You Do in 24-72 Hours! ebook is on the way. We’ve been a little crazy around here and writing time is “scarce.”

P.P.S.: Get 1,500 Contacts to Start Landing Foreclosure Cleaning Jobs Learn more in the The Property Preservation & Real Estate Industry Contracting & Subcontracting Directory.

Like this post? Follow Foreclosure Business News on Twitter. 

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosures Being Suspended Across the Country: What It Means for the Average Joe Trying to Stop Foreclosure

Big banks across the country are suspending home foreclosures. Among them are three of the biggest banks, ie, Bank of America, JPMorgan Chase and GMAC. The reason is “apparent improper handling of documents,” according to the Yahoo! News article, Foreclosures bungle could hit US bank.

What This Means for You If You’re Facing Foreclosure

If you’re trying to stop foreclosure, this could mean good news for you on two fronts:

(i) Prevent Foreclosure Altogether: As banks are backlogged now, more and more of them are working with homeowners, giving home loan modifications, reductions in payments and other alternatives that can bring a homeowner back from the brink of foreclosure.

(ii) More time to get your financial act together: This could be just the financial breather you need, as banks are now being drowned in paperwork. They have to actually look at the paperwork they submit in order to foreclose on your home (duh!). As the aforementioned article states:

Documentation problems “are in all probability” likely to exist in 80 percent of them . . . The influx of hundreds of thousands of foreclosures led lending institutions to employ people who processed the paperwork as quickly as possible in order to put the property on the market in what has become known as “robo-signing”.

This will no longer fly. If it buys you another 3, 4 or 6 months in your home, you can possibly prevent foreclosure, or at least get back on your feet to move someplace cheaper.

Either way, if you’re facing foreclosure and want to hang onto your home, this is good news for you.

Foreclosure Cleanup: STILL a Hot, Evergreen Business Opportunity

Foreclosure cleaning has been one of the hottest businesses around for the last few years. And, as the above news indicates, it’s going to be a burgeoning industry for years to come. Beyond the foreclosure crisis though (because the economy is cyclical and this will turn around), foreclosure cleaning is an evergreen business.

As long as real estate is bought and sold — in good markets or bad — it will always need to be cleaned, repaired and maintained. There are yards to cut, sold/empty homes to be trashed out, sheetrock to be replaced, winterizing to be done — in short, all things that a full-service foreclosure cleaning business can offer.

Foreclosure Clean Up: Ready to Take Control of Your Financial Future?

Did you know that according to the famous book, The Millionaire Next Door, “Although self-employed people make up 20% of the workers in America, two-thirds (66%) of the millionaires are self-employed.”

What this means is if you want to be financially secure, possibly even become a millionaire — you need to go into business for yourself. The vast majority of people never get rich or attain financial security working for someone else. And, foreclosure cleanup is an ideal business opportunity becasue you can start it while you’re working fulltime, and you can build it into an “empire” as fast or as slowly as you wish.

Related Posts

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Home Loan Modification: 65-75% of Loans Modified via HAMP (the govt’s Home Affordable Modification Program) Likely to Go Bad

Home Loan Modifications via Government’s “Prevent Foreclosure” Program Go Up, But Will It Help Stem the Tide of Foreclosures?

Home Foreclosures: Why So Many Homeowners are In Limbo When Trying to Refinance or Modify Their Home Loans Now

Home Foreclosure Scams: Attorney General Cracks Down on Firms Preying on Desperate Homeowners Facing Foreclosure

P.S.: Start a Business Cleaning Foreclosed Properties (ie, Doing Real Estate Cleanup). Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).
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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter. 
Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.