The field services industry, which is commonly referred to as the “property preservation”, “foreclosure cleanup” or “REO trashout” industry, has changed considerably over the years.
When the mortgage crisis and eventual housing fiasco first seized the real estate industry, a great number of smaller foreclosure contractors entered the market. Many of these micro companies performed assorted mortgage field services tasks for lenders, banks, financial institutions, REO conglomerates and asset management companies in hamlets and diverse regions across the United States of America.
A ton of larger, national entities were also part of the landscape that was fast becoming a burgeoning property preservation industry.
A great many of the larger entities such as those of Pemco, Sentinel, Cyprexx, Safeguard, Chronos Solutions (previously known as Matt Martin Real Estate Management), and a great number of similar companies, were direct, first hand components of HUD (“The United States Department of Housing and Urban Development”).
These larger companies hired smaller debris removal, cleaning and trash out services as subcontractors to handle duties such as lawn maintenance, property securing (boarding doors/windows), property inspecting, trash/debris removal, winterization and de-winterization jobs, repairs, lock changes, home maintenance, painting, carpet removal, gutter cleaning, pressure washing, tree removal and many similar property upkeep and maintenance duties.
Services were often performed on vacant houses, many of which mortgagees had walked away from after getting foreclosure letters from their mortgage companies.
Multiple Subbing Opportunities, Jobs and Contracts for REO Service Vendors
Contracts and work order requests were received in numbers, and many small companies had to rush to hire subcontractors to assist with the overflow.
As a result, these smaller contractors made a ton of money in the property preservation and foreclosure cleaning industry at the height of the mortgage crisis.
A Changing Property Preservation Industry
However, fast-forward five to seven years, and its evident the industry has changed, exponentially.
The New Trashout Business, Foreclosure Cleaning Services and REO Property Preservation Model
In recent years, foreclosure cleanup and trash-out services have not only begun to target new key customers and client bases, but they have also added a number of new very profitable mortgage and field services and inked new necessary policies and procedures that work specifically for their own services and businesses — regardless of who their companies may be aligned with or who they may be servicing as vendors and subcontractors and working for, whether it be on a local, national or regional level.