California saw a 13.9% jump in Notices of Default on California properties in April, with a 108% increase since the first of the year. This is good news for companies that specialize in cleaning foreclosed properties. Not only are the California properties that will require cleaning and maintenance services increasing, they are taking longer to be foreclosed upon.
Taking longer to be foreclosed upon does not on the surface seem like it would benefit companies that provide foreclosure cleaning services. However, statistics show that when people know they are going to go into foreclosure and they just live in the home without paying the mortgage payments waiting to be foreclosed upon, they will not maintain the home for that period of time.
This disregard for regular maintenance for a period of one to two years becomes the headache of the bank when they foreclose upon the property. For the property to be sold, it will have to be cleaned, repaired, and maintained. So all that time the property waits for foreclosure, it is preparing itself for cleaning and repairs from some foreclosure cleaning company once the bank gains possession. The cleaning and repairs could be just an initial cleanup and repair of the property, to a cleaning and maintenance contract that lasts for a year or two until the home is sold.
ForeclosureRadar.com published statistics for different states showing the average amount of days it is taking for properties to go into foreclosure. This data can vary greatly by state, and vary within the state depending upon the loan amount of the property. For instance California loan amounts that are $425,000 or less are running an average of 304 days to foreclosure upon, with homes that are valued over $580,000 but less than $729,750 are taking up to 619 days to go into foreclosure. There are many different factors that contribute to this variance in the number of days it is taking for a property to enter the foreclosure process.
Some of the approximate averages of the amount of time it is taking for a property to enter the foreclosure process were published by ForeclosureRadar.com and include, the Arizona foreclosure average time for a property to be foreclosed upon, which is 145 days. The average time for Nevada properties to reach foreclosure is 289 days. Washington’s average time to foreclose on a property is 140 days, and Oregon’s foreclosure stats are showing an average time to foreclose of approximately 166 days.
Other states across the country are also taking much longer for the foreclosure process than they ever have in history. It is partially due to the vast numbers of properties that need to go through the foreclosure process. There have also been some legal scandals over the past few years, like the robo signing that banks were involved with which bottle necked the process of foreclosure when the issue was being corrected. All of these different factors have contributed to the fact that a foreclosure cleanup business anywhere in the country will be very busy for many years to come.
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