Earn Foreclosure Cleanup Cash thru Government's $3,000 Relocation Incentive Program

Between 65% and 75% of Newly "Modified Loans" Will Go Into Re-default

The real estate industry is still in a tailspin with little recovery in sight -- which means foreclosure cleanup business / REO trash out business owners are needed in numbers across the U.S. Even with the band aid banks and mortgage companies have tried to put on faulty loans, the real estate industry is still amazingly in deep trouble.

According to an article on CNNMoney today, "Between 65% and 75% of loans that are modified through the Home Affordable Modification Program but not backed by the federal government are likely to go bad, according to the report released by Fitch Ratings, a N.Y.-based credit-rating agency." Read the full article here.

Foreclosure Cleanup Service: Helping Homeowners Relocate from a Property Using Government Cash Incentives

The government is even giving homeowners cash incentives to move out of homes quickly. I referenced this in an article in the last newsletter (sign up to get it if you haven't already!) and a previous foreclosure cleanup blog post. According to the CNNMoney article, "Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and [mortgage] servicers will get $1,500 for handling a short sale."

That relocation incentive, in the form of cash, can be used to help borrowers ("homeowners") move out of a home -- a service you can quickly add to your existing services as a foreclosure cleanup service. The homeowners will more than likely be moving to smaller quarters and will have many items they will need to have hauled off and disposed of that they no longer need -- furniture, old vehicles, grills, garage debris, basement/storage items and more.

How to Help Borrowers & How to Capitalize Off the Home Affordable Foreclosure Alternatives Cash Incentive Program

Plan to tailor your marketing efforts to capitalize off the Home Affordable Foreclosure Alternatives program. Remember, the incentive is simply a government cash incentive to borrowers in trouble who are putting their home on the market via the short sale method.

What Is a Short Sale?

A short sale is when the bank agrees to accept less for a home than what is owed on the mortgage. Both the borrower and the bank must agree on the short sale method. A short sale is a cheaper alternative for the bank; they generally will only lose 30% on a home when a home goes through short sale, versus 50% if it goes into foreclosure.

Read more about short sales and the cash incentive program by clicking here.

Homeowners Need Your Foreclosure Cleanup Services

In this market, homeowners need your services; but you have to speak the language they need to hear to get the business.

In a postcard mailer, come up with strategic marketing language that speaks directly to the homeowner (nine times out of 10, your competition will not have their fingers on the pulse of this cash incentive trend hitting the market).

Sample Foreclosure Cleanup Postcard Ad

Loss Mitigation Departments

Contact loss mitigation departments of banks to offer your services. Remember, as stated in one of our previous articles, loss mitigation departments of banks and mortgage companies know before anyone else (except the homeowner) when a homeowner is in trouble. They can be a key resource to getting your information to the homeowner and the real estate professional working with them in getting their home sold through a short sale.

Many wishes of success in your foreclosure cleaning business this week!

NOTE: Throughout the web/internet and in real estate industry literature, you may see the terms/names mortgage field services, property preservation business, foreclosure cleanup, foreclosure cleaning, foreclosure clean-outs, foreclosure clean, clean foreclosures, cleaning foreclosures, REO trashout, REO trashouts, field asset services, property field services, field service, and field services used interchangeable. The main thing to remember is foreclosure cleaning and foreclosure cleanup generally refer to smaller entities; while property preservation generally refers to larger entities.

Article by Cassandra Black, Author of How to Start a Foreclosure Cleanup Business and several foreclosure cleanup industry Guides, Reports and Forms. Sign up as a Premium Newsletter Subscriber. You will periodically receive foreclosure clean-up job leads and consultative advice to help you grow your foreclosure cleanup business!

For more industry information, visit the foreclosure cleanup blog and the foreclosure cleaning newsletter archive.