Foreclosure Cleanup Business: How to Help Homeowners Relocate Using Government Cash Incentives

June 21, 2010 - PRLog -- The real estate industry is still in a tailspin with little recovery in sight -- which means foreclosure cleanup 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.

Between 65% and 75% of Newly "Modified Loans" Will Go Into Default

According to an article on CNNMoney, "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."

Foreclosure Cleanup Service: How to Help Homeowners Relocate from a Property Using Government Cash Incentives

The government is even giving homeowners cash incentives to move out of homes quickly.  According to CNNMoney, "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 foreclosure cleanup businesses can add to their cache of services, which usually includes debris removal, cleaning, lawn work, repairs, gutter cleaning, pressure washing, painting and similar services.

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

Foreclosure cleanup businesses can plan to tailor their marketing efforts to capitalize off the Home Affordable Foreclosure Alternatives program. 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.

Strategic Marketing System that "Speaks the Language"

In this market, homeowners need foreclosure cleaning services; but business owners have to speak the language the distressed homeowners need to hear to get the business.
In a postcard mailer, foreclosure cleanup business owners can plan to devise a marketing system that encompasses strategic verbiage that speaks directly to the homeowner (nine times out of 10, the competition will not have their fingers on the pulse of this cash incentive trend hitting the market).

Here's a sample ad that can be used on a postcard mailing:  

"Johnson Foreclosure Cleanup: We Specialize in Helping Homeowners with Government Relocation Incentives ... Fast, Professional, Reasonable Foreclosure Move-out Services. We Look Forward to Helping You Relocate to Your New Home! Debris and Furniture Removal? No Problem. Need Quick Services? No Problem. Call Johnson Foreclosure Cleanup Today!"

Loss Mitigation Departments of Banks and Mortgage Companies

Enterprising business owners can also plan to contact loss mitigation departments of banks to offer their services. Loss mitigation departments of banks and mortgage companies (http://foreclosurecleanupbusiness.blogspot.com/2010/06/ho...) know before anyone else (except the homeowner) when a homeowner is in trouble. They can be a key resource in getting foreclosure cleaning service information to the homebuyer and the real estate professional working with them in getting their home sold through a short sale.

We've seen some relief in the real estate industry over the past months, but with almost three quarters of modified home loans getting ready to go into re-default, foreclosures will be hitting the market in numbers for quite some time and distressed homeowners will need assistance in the form of foreclosure cleanup services on yet another level.

Many wishes of success in assisting homeowners and growing your foreclosure cleanup business.

# # #

Foreclosure Cleanup, LLC, authoring company of How to Start a Foreclosure Cleanup Business: FREE Articles & Advice, http://foreclosurecleanupbusiness.blogspot.com, and How to Start a Foreclosure Cleanup Business, http://www.ForeclosureCleaningBusiness.com.