More and more contractors have moved into the mortgage field service industry assisting banks with the maintainance of their properties across the nation due to the downturn in the construction industry.
This emerging market has grown substantially in the past two years. The demand from lending institutions and government entities for professional contractors to aid in the revitalization of neighborhoods is now more needed then ever. It's a essentcial that banks maintain curb appeal to sell the property for maximum profits.
The growth of this emerging market is primarily due to the unfortunate increase in REO's. With unemployment rates reaching double digits in many states and more Americans living paycheck to paycheck, it is no surprise that foreclosures and REO inventories are still on the rise. The more foreclosures there is in a particular neighborhood, the more effected house values in that area would be. You might have already felt the effects of this
The more deteriorated the property conditions are on the home the more it will cost the lender to recover. This will of course effect their bottom line. Lenders need regular continues maintainance of their assets to maintain curb appeal for the potential buyer.
Some of the services contractors are providing to bank are
- Debris removal
- Eviction support
- Property inspections
- Lawn care
It's estimated that mid 2010 their will be approximately 3,000,000 foreclosures on the market according to analysts from the Royal Bank of Scotland. About half are seriously delinquent, 90 days past due, and other half have entered the foreclosure process. But the banks have not taken them yet.
It's not to say that all of this shadow inventory will ever hit the market. However, contractors should get themselves in position for the percentage of the properties that will hit the market says Will Addo, President of MortgageFieldRep.com. MortgageFieldRep.com is a nationally recognized database provider to lenders and asset management firms. They use the site to locate contractors, reo agents, inspectors, appraisers and real estate attorney throughout the country.
If you are amoung those contractors effected by the current housing market you should consider getting into the mortgage field service industry.