There are companies that clean up foreclosures to get them ready to be listed and placed back on the housing market for sale. Some of these foreclosure clean up businesses report that they clean 10 to 20 foreclosed properties per day, of course these are companies with many teams of employees. There are family owned foreclosure cleanup businesses that are small and only have a few employees that report they clean up a couple of foreclosed properties per day.
These companies also maintain many of these vacant foreclosed homes, because of the time it takes to sell foreclosed properties. Some companies report that they maintain 500 vacant foreclosed properties per month, with smaller companies reporting that they maintain 20 to 40 properties. These foreclosure cleanup companies provide pool services, lawn care, and maid services, along with minor and major repairs. Some of the companies report that they use subcontractors to complete some or all of this work, while some foreclosure clean up companies do all the work with their own employees.
Maintaining foreclosed vacant properties is booming with the current number of foreclosures that are on the market, because of the amount of time it takes for them to sell. The processing timeline for foreclosures is continually increasing, depending upon the area of the country.
RealtyTrac® is currently the leading online marketplace that lists information on foreclosure properties, and released the RealtyTrac® Year–End 2011 U.S. Foreclosure Market Report™, which provides data on the foreclosure market through 2011.
RealtyTrac® Year-End 2011 U.S. Foreclosure Market Report™ reveals that in the 4th quarter, U.S. properties are taking an average of 348 days to move through all the phases of foreclosure. This figure is up from the 336 average amount of days foreclosed properties took to go through the foreclosure process in the 3rd quarter. It is also up from the 4th quarter of 2010, which showed the average time it took for foreclosures to go through the foreclosure process as being 305 days. The 3rd quarter of 2010 reports the average days to go through foreclosure as 281, which is a 24% increase for foreclosed properties to move through the foreclosure process from the 3rd quarter of 2010 to the 4th quarter of 2011.
The New York average foreclosure takes 1,019 days on average to complete the foreclosure process, according to the data for the 4th quarter of 2011. This is the longest time for a foreclosed property to go through the process of any state in the union.
The 2nd longest time for a foreclosed property to go through the process is in the state of New Jersey, and is an average of 964 days. Florida is in 3rd place, with 806 days being the average time for a foreclosed property to complete the foreclosure process.
Texas is reporting the shortest time for the foreclosure process, which is an average of 90 days. Some of the other state averages include Louisiana at an average of 134 days, Virginia has an average of 132 days, Kentucky reports 108 days on average, and Delaware has an average of 106 days.
With foreclosed properties sitting months and even years there is a great need for companies that clean up foreclosures. These backlogs of foreclosures will continue for years, and will require foreclosure cleanup services.
One foreclosure cleanup company reported that to clean up a foreclosed home runs an average of $2,000, with each property varying because of specific needs. Some foreclosed properties have more damage than others, and some require more cleanup because of the amount of trash.
Foreclosures may need locks replaced, broken windows replaced, sheetrock and paint repairs from holes punched in the walls. Lawns are often overgrown, so it takes more than just mowing. Trash is often thrown everywhere, and utilities have been turned off, so the refrigerators often stink with old, moldy food.
Swimming pools without regular maintenance are green and slimy. So each property must be analyzed to see what it requires to put it into shape so it can be listed and placed back on the housing market for sale. Businesses that clean up foreclosures are required to either have people on staff to handle these types of repairs and maintenance, or they can subcontract out some or all of the work.
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