View Full Version : How to get foreclosed properties??
03-14-2009, 01:01 PM
Hey....Does anyone know how you go about getting foreclosed properties? There are alot of homes in my area that are foreclosed on and the lawns are starting to look like sh*t. I would like to maintain those properties but I'm not sure who i need to contact. Thanks!!
03-14-2009, 01:03 PM
Banks will let them sit before they will pay you or anyone else to maintain them. The only time you'll get them is if they are selling and even then they'll cheap out on it and want it done for the bare minimum.
03-14-2009, 01:18 PM
Talk to the realitor selling it for the bank. If it doesn't have a for sale sign in front yet it probably isn't in the banks possession yet, in the process of foreclosure. Typically 2 mows per month, priced pretty low, and slow pay.
While this market can help with cash for the next year or two. It doesn't help build your business for after we get through the housing bubble. It's a short term gain not long term. I did some for a guy last year and it went ok, helped fill the schedule but by no means a good money maker.
03-14-2009, 01:43 PM
We avoid them, slow pay, low pay, short term work and as our company is known for high quality work and the banks/realtors won't pay for it, it's bad PR to have other folks in the neighborhood seeing you do the work. They don't know the "deal" on foreclosures and just think you do crappy work.
And many of the banks now want you to submit pictures with your bill to prove you cut it.... even though the bank has likely never even seen the property! And you can't just "email" the pictures, they want them with the bill.
Several other LCOs here have quit doing them for the same reasons.
They didn't used to be so bad (several years ago when there weren't that many. But now the banks/lenders have so many of them that the maintenance costs have become an issue and they're either leaving them alone or want bare bones service for next to nothing.
The last banker I talked too said mostly "speculators" are buying the foreclosures anyway and they're not paying anywhere near what the bank already has tied up in them so maintenance is just more money down the tube (in their opinion)
In the nicer areas around here some of the neighbors pitch in and keep them at least presentable just so the neighborhood doesn't look like crap.
03-14-2009, 01:44 PM
Try - safegaurd properties and field asset services - we do work for both of them - they are hired by the banks - freddie mac, fannie mae, well fargo - etc.. to manage the upkeep of these properties. Shhhh - its a secret.
03-14-2009, 02:23 PM
The problem is nobody owns that property, at least not a single person does.
Somebody is assigned to take care of them, but they don't own it.
Hence any money spent comes out of their pockets, and even if they get a
commission when it sells there is no way they'll ever recover that cost.
So as a rule, the maintenance goes cheap.
03-14-2009, 04:13 PM
Starting last year I have hooked up with a bank doing foreclosure properties and for me they paid pretty well. and i have got a few 1000 landscape jobs off of it. the pay is slow but wasnt terrible for me.
03-14-2009, 04:17 PM
Check to see what cities/towns fine the property owners if the lawns are not cut. These are the places where banks (or the companies that maintain the homes for the banks) will hire LCO's for every other week lawn service. We do one route every other week that keeps us busy all day and is outside our usual service area. It pays OK and on time, and is good extra work that can be done anytime, in the rain, Sunday, or whenever as long as it is close to the two week interval so the bank does not get fined by the city.
03-14-2009, 06:27 PM
You can start with you local main branch banks. Go in--ask for the person in charge of the field assets department. Usually, a bank V.P. will be the one to talk to or their assistant.
We have tried the avenue of contacting and vocallizing with real estate commissioners and all they want is good work for cheap money. They are hard to pay and slow to pay.
Stay away from them! These guys are there to sell the property and they will spend no more than they have to because it comes out of their pocket. Once the house makes it to the foreclosure status, a bank will assume the asset. This is where you may get a call!
I tell you that we do 3-5 a year and it includes the interior cleanups and lawn work. Yes, they are usually overgrown and filthy. We bid each accordingly and submit it to the assets team. Your first couple of checks from the banks will be late because of the time deferred getting you into their sytem. After they pay, you know the check is good. For us, there isn't many to do throughout the year, so we work these types of jobs in as they call. You have to be able to haul off debris and building materials on these jobs.
03-14-2009, 07:11 PM
I mow for my Credit union and they once in a while will throw one at me but they generally suck, People know they are leaving and generally dont care about anything in the yard, by the tiem you get there it is way to late and the bank wont pay you what it is worth.
03-14-2009, 07:26 PM
I am not talking about houses that are in the ghetto, I am talking about houses that are in decent areas. Yes, they are overgrown.....................but certain cities have code enforcement policies that will require land owners and property receivers to keep the lawns up. The county areas are the one's that will be pretty shabby.........we stay clear of these unless the banks are wanting to sell them. The properties must be made to sell and their appearance is important. If the banks do not want to pay for a sufficient job, then I guess it is not worth the effort. Don't walk away from them............just bid them like you don't need them............. Let the establishments make the final decision.
If they are left too unattended and brushhog work is needed, then we sublet that out. The banks know what that stuff costs, don't let them fool you. They are in the business of making money. Sooooooooooooo are we!!!!
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