Maintenance of Foreclosed Homes Spawns Big Business Opportunities
The American economy has been one of the worst states this country has ever seen. With unemployment at its peak, people do not have the resources to pay off their mortgage bills. Subsequently, banks have been taking over houses left and right, which has foreclosed homes to rise in places like Nevada, California and Michigan. However, the worst thing of all is that foreclosed homes are empty now because owners have fled from them.
Maintaining foreclosed properties is a difficult proposition but has become good business in recent years for people like Matt Johnson. Of course, it leaves his hands dirty most of the time.
His company – Tri-County Property Preservation – maintains foreclosure homes on the behalf of major financial institutions. He, along with his five other employees, remove snow, cut grass and carry away the trash that is left behind after owners leave their homes. The company also treats pipelines and defrosts them in the winter. Besides the company’s other onerous duties, they have to make sure vacant properties are kept clean all the time.
Johnson says the job of cleaning and maintaining vacant properties can be quite disgusting as well. There are some vacant homes whose carpets have been stripped off, lights in the homes ripped apart and the heating system pulled out of the circuit. Almost everything that needs to be fixed can be found inside a foreclosed home.
Johnson charges a fee of $35 to $50 to mow lawns, $35 to $50 for removing snow and $400 to $450 for removing garbage in a 10-cubic yard area. There is much competition in his field of work and he has had to cut down on prices in order to stay in the competition. Last month, his company maintained nearly 500 foreclosed homes in Clinton, Ingham and Eaton counties. However, he expects the number to climb down to nearly 300 this month. The decline in foreclosures, Johnson says, can be attributed to the 90-day ban on foreclosure filings in March. “With the freeze on foreclosures currently being lifted, there will be a rise in inventory now”, Johnson says.
In Michigan, Florida and Arizona, maintaining foreclosed properties is big business for many people. These three states have been hit hardest by the foreclosure blight. Property Shield proprietor Scott O’Berry says his company often gets notices to maintain 12 foreclosed properties overnight. After all, vacant homes are the favorite hunting ground of thieves, vandals and sometimes even animals.
O’Berry also believes that foreclosures usually have a bad impact on neighborhood’s housing values. His company, which consists of 45 people, charges $3,500 for the maintenance of each property they take on.
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Julie,
Found the piece informative, but as usual far too short – not your problem as I’m sure you were limited on space.
Be happy to hear any additional information or sources you got information from espec. around the Dallas/Ft Worth, Texas area.
Our company would like to compete in this type of business,we are located in the west Michigan area.
Who do we contact to start picking up foreclosed homes to maintain.
Good Afternoon Julie,
My nameis Trent Timmons and I’m with the Terra Nova Development Group LLC. I’m finding it very hard to locate or even find someone from the banks, Mortgage Bankers/Brokers on how can we contract out with them to become their Property Preservation and Maintenance specialist. Please can you help with some contact listing we’re located in Long Beach ? California so we are local.
Thank you,
Trent Timmons
[...] you go to an auction with the intent to purchase a foreclosed home it is your responsibility to know what you are bidding on. Be aware of damages that need repaired [...]
[...] good thing for those who are trying to buy one but it is not a good thing for those who have their homes foreclosed by the lenders. When people take loan form the lenders which may be a bank or any other lending [...]