Companies Doing Cleanups of Foreclosed Homes Proliferating
December 2nd, 2008 by 
Joseph Smith
The economic crisis that put a dent on the housing market and caused a surge of foreclosures has created a new startup business, firms that clean foreclosed properties.
Real estate agents are hired by banks to resell the property, and a firm is also contacted to clean up the foreclosed home after its owners have been evicted.
Web sites have also been created that offer advice on how to start a business in foreclosure cleanup. “Entrepreneur Magazine,” even featured the foreclosure cleanup provider, Cyprex on its 2008 list of "Hot 100 Fastest Growing Business."
Meanwhile, some real estate companies have ventured into this type of business, performing eviction lockouts and providing property management services, including home repairs and cleaning.
ALL REO Preservation owner Linda Hall said that her business has become successful that she is developing a plan to provide employment to other contractors. She currently has subcontractors and crews in various states.
Hall’s company also offers training programs for startup businesses. She explained that sometimes the work just involves changing the locks and cutting the grasses because some of the foreclosed houses are in better shape.
Data from the Mortgage Bankers Association showed that, as of June 2008, there were more than 4 million homeowners who were behind a month or more on their loan payments.
Moody’s Economy.com predicted that about 2.8 million homeowners in the United States will lose their homes before the end of 2008. Some will sell their homes for less than the market value of the property, while others will turn over their properties to their lenders.
A homeowner is evicted from his home if he and his lender failed to come up with a deal that will allow him to remain in his property. It is the job of the county sheriff to deliver the notice for eviction lockout to the owner of the foreclosed home.
