When you invest in a new rental property or purchase your primary residence, and it came at a discount because it was a foreclosure, you'll likely be facing a big mess to deal with. During the time it took the bank to foreclose, most soon not-to-be homeowners go through an emotional roller coaster. Combined often with very limited financial resources, they let the property to slip into a state of disrepair. Some feel jilted and actually intentionally wreak havoc on the property, breaking windows, pulling doors off hinges, and either destroying or taking appliances out. It isn't uncommon to find piles of junk garbage, old furniture, and personal possessions left behind, as well as pest infestations.
To deal with the mess that was left inside and around the outside of the home, you can opt to clean it up yourself or get quotes from foreclosure clean out services. What you're likely to find is a wide range of foreclosure clean out prices, because companies base their fees on different things.
[In the wake of] the nation’s staggering foreclosure rate, banks and other lending institutions find themselves with a glut of properties to sell or lease. During the foreclosure process, the homeowner will sometimes react to being evicted with anger, trashing the house, removing built-ins and leaving the home uninhabitable. To get the home ready to sell, banks, or their listing agent, will hire cleaning companies. -- San Francisco Chronicle
Different foreclosure clean out jobs require different levels of work and the more work that must be done, along with the amount of junk to be hauled away, will determine the cost. What you might find is that the money you saved will go to getting the property back to livable condition. Once it is, you'll increase its value, adding instant equity, and building more equity over time.
The very first thing that must be done is a top to bottom inspection. Walk through the property, going into each room and opening every closet and cabinet door. Make a list as you go, noting what is in the home and the various conditions. This is a good time to bring-in a pest inspector, if you haven't already done so, as well as a home inspector if you've not yet hired one. Next, depending on what's left in and outside the home, separate into three piles. If there are items which are salvageable and you want to keep them, put them in one place. For salvageable items you don't want to keep, put them in another place to sell or donate to charity. Everything that's left gets hauled away to be junked or to be recycled.
Filed Under: Company News