Foreclosures Usher In New Business Enterprises

Posted in Foreclosed House, September 23rd, 2008 |

Foreclosures are ushering in new business enterprises in these troubled times. For certain Michigan companies foreclosures have turned out to be a boon as they get employment to maintain the foreclosed units.

In Warren, Five Brothers Mortgage Co. offers maintenance services and they have seen their business shoot up three times in the last five years. They board windows, trim lawns and undertake repairs. The work can carry on for months and even years.

Joe Bada the proprietor of Five Brothers explains that their job “is protecting the mortgage company’s interest in the properties.” So they clean up the front yard, mow down the grass and ensure that there are no trespassers. Their task is to see that the property remains intact by undertaking minor repairs to prevent the house from becoming derelict.

With its hands full, Bada appointed RJS Property Management on a contract basis to inspect and shore up a foreclosed house in Warren. It is a modest sized ranch with two bedrooms. The house was vacant but unclean with junk dotted all over and cobwebs making patterns on the walls and ceilings. The yard was an overgrown mess. As part of their work they are changing the locks, checking the plumbing system and removing oils etc. After conclusion of the preliminary inspection and minor repairs a report has to be submitted to the banks.

Bada claims that per month they undertake 40,000 inspections of foreclosed houses approximately. His company has started to expand beyond Michigan to states with high foreclosure numbers like California and Nevada. Despite money rolling in from his business, Bada has a word of sympathy for those who had surrendered to foreclosure. He sighs that the times are really bad having affected all – rich and poor. Many are without job and cannot find new ones offering similar terms and conditions. Bada comments that since 1967 he has not seen so many vacant properties in Detroit. It was at that time he had started his business when many residents were leaving for the suburbs.

Today as he and his crew knock from one address to another they find houses in various conditions of disrepair. Some are void but clean. Others are not dirty but choc-a-bloc with personal stuff left behind. It is touching to come upon mementos, toys and family photographs. They also come upon former owners who have become squatters but reluctant to go until thrown out by the banks.