Foreclosure Cleaning – 2 Things to Consider When Cleaning Bank-Owned (REO) Properties

Foreclosure Cleaning – 2 Things to Consider When Cleaning Bank-Owned (REO) Properties

When it comes to foreclosure cleaning jobs for banks, there are some definite guidelines to follow. Why is that? Remember that banks are regulated by the federal government. Therefore, they have specific guidelines to follow – everything from how invoices are drawn up to how long payment takes is predetermined.

Since these are lucrative foreclosure cleaning jobs, if you own a foreclosure or real estate cleaning business, it is wise to pursue them. Here are two things you need to know if you intend to clear foreclosed properties for banks. Knowing them will make your life a lot easier – especially when it comes to invoicing and getting paid.

1. Billing banks for foreclosure cleanup jobs: All banks have specific requirements regarding the preparation of invoices. If the invoice is not prepared correctly, you will delay payment for any foreclosure cleanup work you do for them.

You might be thinking, “I have an invoicing system that I use. How different can it be to create an invoice for a bank?” The answer is – very different.

Not that it’s hard; it can just get boring. You may be asked to do things that seem pointless.

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

Why is that? The invoice you send may go to one department, while the photos of the job may go to another department entirely.

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

2. How long does it take the bank 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 agent (or other professional) who hired you may pay you after, say, 30 days. They will then be reimbursed by the bank.

Don’t count on it though. To be safe, be prepared to wait up to 90 days to be paid by the bank for foreclosure cleanup.

Knowing that you will need to financially “let go” of a foreclosure cleanup job like this can help you determine how much help to hire (or not hire), how much to spend on supplies, etc. In short, it will help you predict your cash flow foreclosure cleaning business better overall.

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

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