Clean Foreclosures: 5 Reasons the Foreclosure Crisis Continues to Deepen and Make This a Great Biz

More home foreclosures are on the horizon, as the following 5 reasons highlight. Hence, if you're thinking of starting a business cleaning foreclosures, the time is ripe to get in on the ground floor of this hot business opportunity.
By: Yuwanda Black for ForeclosureBusinessNews.com
 
May 13, 2009 - PRLog -- It seems that home foreclosures have been in the news for a long time. But really, it hasn't been that long. Most housing experts agree that the mortgage meltdown that started this whole thing started in the fall of 2007. So really, this means that we're only a year and a half into this mess.

When viewed in this light, it makes sense that more home foreclosures are on the horizon. Hence, if you're thinking of starting a business cleaning foreclosures, the time is ripe to get in on the ground floor of this hot business opportunity.

5 Reasons Home Foreclosures Will Continue to Rise: This Means Opportunity for Foreclosure Cleaning Businesses

1. Many Homeowners Are Under Water: What does this mean? It means that a homeowner owes more on the house than it what it would sell for. Ironically, foreclosures contribute to this because when a home goes into foreclosure, it drags down the property values of the homes around it, creating a vicious cycle.

This brings us to the next reason home foreclosures are only going to rise, ie:

2. Many Homeowners Are Doing the "Jingle Mail Walk": What is this? This is when a homeowner mails the keys back to the lender and give up their rights to the property (voluntary foreclosures). Real estate industry professionals have termed this "receiving jingle mail."

And in some cases, banks are walking away from foreclosure properties as well because in some cases it costs more to fix up and sell a property than to just let it go.

3. The Economy: Unemployment remains at record highs and job losses are a major reason many lose their home to foreclosure. This makes sense as the mortgage is usually the biggest expense most of us have. Until the economy gets back on solid footing, more home foreclosures are on the horizon.

4. No Savings: Less than a quarter of Americans put some of their paycheck in savings. We are a nation of spenders; not savers. And finally, it may have caught up with us. For years, many homeowners have depended on the equity in their homes to carry them through financial crisis.

But as mentioned above, many homeowners are under water -- meaning there is no equity in their homes. So when disaster strikes, they have no financial safety net, which leads us to the final reason home foreclosures are likely to rise.

5. Credit Is Scarce: Banks are being bailed out by the federal government and, lending standards have tightened severely. All of this means that credit is scarce. Homeowners can't borrow their way out of a crisis like in the past.

For all of these reasons, home foreclosures are likely to continue to rise. This spells opportunity for those who want to start a business cleaning foreclosures.

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To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. You'll also find info on new career options for real estate professionals, free articles for your website, newsletter or blog -- and a lot more.
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Source:Yuwanda Black for ForeclosureBusinessNews.com
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Tags:Foreclosure Cleaning Business, Home Foreclosures, Clean Foreclosures, Cleaning Foreclosures, Foreclosure Clean Up
Industry:Foreclosures, Mortgage crisis, Business opportunity
Location:United States
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