June 23, 2024

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Foreclosure Cleaning Biz Advice – What Are “Assuming Institutions” & How to Make Money From Them

When a bank fails, while it is bad news for the community at large, it can be good news for foreclosure cleaning businesses – if they know how to use this info to their advantage. If you’re curious about what this has to do with ‘assuming institutions’ and how your foreclosure cleaning business can profit from them, read on.

Assuming Institutions Defined

Just because a bank fails, it does not mean that its customers stop receiving service. Payments on car loans are still processed. Applications for small business loans are still approved and/or denied. And, home loan (mortgage) payments are still taken and applied to consumer accounts. Following is why.

Banks in the U. S. are insured by the FDIC, the Federal Deposit Insurance Corporation. So when a bank fails, they take over the assets of that institution. These assets are usually bought or taken over by other banks and financial institutions. And, these are what’s known as assuming financial institutions. They are also called acquiring financial institutions.

How to Get Foreclosure Cleaning Jobs from Assuming Institutions

Many times, acquiring financial institutions will contract with large property preservation companies to oversee the maintenance of the failed bank’s real estate assets. Many of these real estate assets are foreclosed properties. They consist of residential foreclosures and commercial foreclosures.

And this is why it pays for small to mid-sized foreclosure cleanup business owners to keep up with bank failures. You see, these large property preservation companies have a lot of work thrown their way. And, it can be all but impossible for them to keep up with it – especially in the midst of the current home foreclosure crisis.

Banks and other acquiring institutions don’t like to see their foreclosed properties sit vacant because it leaves them open to things like vandalism, vagrants and squatters. This can significantly decrease the value of the property.

So in order to service these foreclosed properties, these property preservation companies contract with other enterprises like foreclosure cleaning businesses to maintain properties until they can be put back on the market to be sold, leased or rented.

Some of the things foreclosed properties need that foreclosure cleanup business can offer: property inspections, lawn maintenance, winterization, boarding up of windows, etc.

#1 Tip for Getting Foreclosure Cleaning Jobs from Acquiring Institutions

Banks and larger property preservation companies won’t even consider doing business with foreclosure cleanup business that aren’t licensed and insured. So do this before you start contacting them.