Housing Crash Leads to Boom For Foreclosure Cleanup Businesses

foreclosure cleanup business

Profits in Foreclosure Cleanup Business

The housing slump, which brought falling prices and growing foreclosures, is still going strong after three years. Realty Trak, a company which follows foreclosure activity, projects that 2011-2012 will be the peak years for foreclosures, with an estimated 1.2 million foreclosures in 2011.

Why the growing number of foreclosures now? First, the “robo-signing” scandal caused a foreclosure freeze last year, which has just been lifted. That will push the numbers higher this year, as banks play catch-up. Second, many homeowners who owe more than their home is now worth are simply walking away from their homes, creating yet more foreclosures.

Once a bank has foreclosed on a home, it’s in their best interest to maintain the property to preserve the value of their investment. To do that, banks and real estate management companies hire foreclosure cleanup companies and junk haulers to haul away the stuff people leave behind.

A trash removal business is essential to foreclosure cleanups. Usually, when a home is abandoned, the former owners move to a smaller, more affordable place and leave many of their possessions behind. That’s where a junk removal service is needed – to dispose of the sofa, the broken TV, the lawn chairs and broken BBQ in the back yard. Some even leave pets behind!

In addition to cleaning up and hauling away all the stuff left behind, many homes require additional services, such as repairing broken windows, cleaning carpets or mowing the lawn every few weeks. If you’re not interested in doing that work yourself as part of the cleanup package, find the people with those skills to refer work to. A referral fee of 10-15% is common, so you can make extra money without doing the work. It’s a two way street – those same tradespeople will refer haul-away business to you in the future.

You’ll find opportunities for haul away and foreclosure cleanup work in most towns by simply contacting local banks, property management firms and REO (real estate owned) real estate agents in your area.

With foreclosure rates still growing, now is the time to profit from the foreclosure cleanup boom with your own haul away business. If you have a truck and a cell phone, you should be able to get started for just a few hundred dollars – and potentially make it back on your first job. Those who specialize in this “niche” report earning $400 to over $3,000 on each foreclosed home to get rid of the mess left behind by the former owners. To learn more, read Haul It Away.