Foreclosure Cleanup: 2 Things to Consider When Cleaning Up REOs

When it comes to foreclosure cleanup jobs for banks, there are some definite guidelines that need to be followed. Why is this? Remember, banks are regulated by the federal government. Therefore, they have specific guidelines that must be followed: everything is predetermined, from how invoices are prepared to how long it takes to receive payment.

However, since these are lucrative foreclosure cleanup jobs, if you are the owner of a foreclosure cleanup business or real estate, it is wise to look into them. Here are two things you need to know if you’re going to clear foreclosures for banks. Knowing them will make your life so much easier, especially when it comes to invoicing and getting paid.

1. Billing Banks for Foreclosure Cleanup Jobs: All banks have specific requirements when it comes to preparing invoices. If the invoice is not prepared correctly, you will delay payment for any foreclosure cleanup work you perform for them.

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

It’s not that it’s difficult; it’s just that it can get tedious. They may ask you to do things that don’t seem to make sense.

For example, almost every foreclosure cleanup job you complete for a bank will require you to submit photos. Some will ask you to attach dated and time-stamped photos with the invoice; others will want you to submit the photos separately.

Why is this? The invoice you send might go to one department, while the work photos might go to another department entirely.

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

2. How long does it take for the bank to pay for foreclosure cleanup work: Banks can take between 30, 45 and 90 days to pay an invoice. In some cases, the real estate broker (or other professional) who hired you can pay you after, say, 30 days. Then, they will be financed by the bank.

However, do not rely on this. To be on the safe side, be prepared to wait up to 90 days for the bank to pay you for foreclosure cleanup jobs.

If you know you’ll have to financially “float” a foreclosure cleanup job like this, it can help you determine how much help to hire (or not to hire), how much to spend on supplies, etc. In short, it will help you better predict the cash flow of your overall foreclosure cleanup business.

Bank foreclosure cleanup can be very lucrative, if you do it with your eyes wide open.