Foreclosure Cleaning: 2 Things to Keep in Mind When Cleaning Bank-owned (REO) Properties

July 14, 2009 - PRLog -- When it comes to foreclosure cleanup jobs for banks, there are some definite guidelines that need to be followed. Why is this? Remember, banks are regulated by the federal government. Hence, they have specific guidelines that must be followed -- everything from how invoices are prepared to how long it takes to get paid is pre-determined.

As these are lucrative foreclosure cleaning jobs to have though, if you're the owner of a foreclosure or real estate clean up business, it's wise to pursue them. Following are two things you need to know if you're going to clean foreclosed properties for banks. Knowing them will make your life so much easier -- especially when it comes to invoicing and getting paid.

1. Invoicing Banks for Foreclosure Cleanup Jobs: All banks have specific requirements when it comes to invoice preparation. If the invoice is not prepared correctly, you will delay payment for any foreclosure cleaning work you do for them.

You may be thinking, "I have an invoicing system that I use. How different can it be to prepare an invoice for a bank?" The answer is -- very different.

It's not that it's hard; it just that it can get tedious. They may ask you to do things that don't seem to make sense.

For example, almost all foreclosure cleaning jobs you complete for a bank will require you to submit photos. Some will ask that you attach dated and time-stamped photos with the invoice; others will want you to submit the photos separately.

Why is this? The invoice you submit may go to one department, while the photos of the job may be submitted to another department altogether.

The person from the bank who hired your foreclosure cleaning company will give you specific instructions on how to submit your invoice.

2. How Long the Bank Takes to Pay for Foreclosure Cleanup Jobs: Banks can take anywhere from 30 to 45 to 90 days to pay an invoice. In some cases, the real estate broker (or other professional) who hired you may pay you after say, 30 days. Then, they'll get reimbursed by the bank.

Don't rely on this though. To be safe, be prepared to wait up to 90 days to be paid by the bank for foreclosure cleaning jobs.

If you know you're going to have to financially "float" a foreclosure clean up job like this, it can help you determine how much help to hire (or not hire), how much to spend on supplies, etc. In short, it will assist you in predicting the cash flow of your foreclosure cleaning business better overall.

Cleaning foreclosures for banks can be very lucrative -- if you go into it with your eyes wide open.

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