How to Clean Out a Foreclosure

Buying a foreclosure is one way to get a deal on a residential home, though it requires quite a bit of due diligence. There's a lot to consider, especially when the property is in a state of disrepair.

Depending on the circumstances, the home might not yet be in the bank's possession, even though its former occupants have left. It could have not sold at auction, which means the lien holder is the legal owner, but doesn't spend money one what's likely already a loss. In this article we will focus on the former and help you determine how to clean out a foreclosure.

Foreclosed Homes a Problem for Lenders and Neighborhoods

Many counties around the nation began taking steps years ago, while others are just now responding to the problem of foreclosed homes being blights on their neighborhoods. When a foreclosure becomes noticeably neglected, it has a negative impact on the properties around it. What's more, it becomes part of a regular route of code enforcement agents.

Some of these homes are foreclosed and owned by mortgage companies; others are abandoned but still in legal possession of the former owners. The banks also dispatch contractors to the homes of people who have fallen 45 days or more behind on their payments but are not in foreclosure to determine if they have been abandoned. All told, an estimated 3.3 million properties require either an inspection or some form of repair work each month. -- Huffington Post

The housing collapse is still having an adverse impact on the economy, but it can present an opportunity to individual investors with the resources and means to breathe new life into these distressed properties.

Steps on How to Clean Out a Foreclosure

In general, a foreclosure will be in a state of disrepair. It might only be cosmetic, but some hidden problems might be lurking behind the walls, in the basement, garage, or attic. Here's how to deal with a foreclosure:

1. Take an inventory. Take caution when entering the property because you might find yourself stepping into a nasty situation. Pest infestations aren't unusual and sometimes, previous residents have left unpleasant tokens out of anger. Take note of everything, from the conditions inside, to the appliances.
2. Get an inspection of the home. Hire a home inspector to go through the property and create a report of all problems.
3. Have a contractor give you an estimate. Depending on the condition, the cost and time might be worth the investment. Have a licensed professional provide you with an estimate to rehabilitate the property.

Now, it's time to get to work. While you can do the clean out yourself, you ought to have a hauling service take all the debris inside and out away. You'll be further ahead to allow their crew to do the job for you. There are many pitfalls you probably won't be prepared for and that alone will be well worth it. After all, you should be making wise choices to maximize your outcome.