October 26, 2006 at 3:04 PM #7780
Can any one please give me information on how to setup a foreclosure business.
Is any kind of certification needed?
Are any courses offered for foreclosure processing?
Can certified/trained staff be hired?, if so where would I find them? – Monster.com?
Who would be the clients?
Should I be marketing the service to mortgage companies? – countrywide – LOL
Any one on the board already prepare a business plan for setting up a forclosure business? Is so would you be interested in sharing it with me.
I am considering shopping around for an existing foreclosure business and buying out one. Any one with any inside information on the business please post your valuable suggestions.October 26, 2006 at 3:43 PM #38497VanMorrisonFanParticipant
I am not sure exactly what you mean by a “foreclosure business.” During the last downturn there were a few hearty souls who made a living buying foreclosed properties, fixing them up, and either renting them out or selling them.
In order to get started in THAT business you don’t need to buy a “foreclosure business,” but you do need to have a VERY GOOD understanding of the judicial foreclosure process. Having a handle on real estate values (where the market REALLY is) is important. You’ll need some knowledge of construction and repair costs. Finally, you’ll need some capital. Oh…some luck would also help.
I spent an afternoon with a friend several years ago (during the last down cycle) driving around Pasadena looking at homes that were about to be foreclosed upon. Much of what we saw looked awful from the outside, but I am sure there were some “diamonds in the rough.”
I think the best thing to do would be to specialize in an area where you think there will be a good number of foreclosures. (Say Downtown Condos!) Know the buildings, floorplans, rental prices, and realistic sales prices for properties in that area. I am sure there are books you can get on the subject. Go to a few foreclosure sales but DON’T bid on ANYTHING until you know what you are doing.
Good Luck!October 26, 2006 at 3:50 PM #38499MHParticipant
Huh? I'm certainly not the be all – end all, but what exactly is your concept other than the word "foreclosure?"
Would be tough, IMHO, to make a lot of money in this market unless you have some specific advantage or angle. If money is being lost in a foreclosure (and that's the reason it IS a foreclosure, no?) – there's likely not a big margin to be made. The losing homeowner might be willing to sell, but again you're going to gain much other than a house you can't sell either. So, the seller is a dead end. The banks – already losing money they're probably not in a big hurry to add to their loses by hiring extra folks to do any part of the processing – particularly if you don't already posess a JD or RE license or similar "must have" service.
Seems to me the smart money is going to stay away from this mess… maybe keep some capital available and buy up some places if the costs go down enough. Or, perhaps even buy some distressed places and let the former owners rent 'em – but that's hardly a risk-free opportunity.October 26, 2006 at 4:09 PM #38501NateKParticipant
I have been looking long and hard to find a partner in the foreclosure business in the United States. My business has prospered so much in Nigeria that I am now willing to take my venture overseas. I have all the information necessary to start up a profitable business with you in the United States. But in order to start our business together, I will need you to wire $10,000 USD to my account at the Bank of Nigeria. This will be your share of the transaction fee needed for us to move this venture to the United States.
I can assure you that I look forward to doing business with you. And your promptness and confidentiality will be greatly appreciated.
Clyde OgoboOctober 26, 2006 at 5:07 PM #38505AnonymousGuest
That’s hilarious, NK!
A service that may be in demand during the upcoming recession/depression will be serving as a receiver or trustee, to liquidate assets, pay off creditors, etc.
I’m guessing that’s an attorney job, though.October 26, 2006 at 5:24 PM #38507
by foreclosure service, I did not mean buying properties in foreclosure, but providing the service to fecilitate forecloseure. A couple years ago, I had to foreclose on a property that I financed.
Long story short, I helped a guy buy a property by loaning him money, he screwedup, so I used a foreclosure company to serve NOD and the works, finally the property was setup for auction, and the guy coughed up the cash by screwing some one else, one day before the auction date.
This whole process was managed by a “Foreclosure company”. that charged me about 5K
I am betting that there will be many forclosures in the next 2 to 5 years and would like to build a service company that would offer the service to lenders.
NO BUYING PROPERTIES FOR ME. I have been calling for a crash since 2001. I guess I was a lil too early.October 26, 2006 at 5:32 PM #38509
Clyde, you are something.
I though this Nigerain crap is only linmited to email. These guys from Nigeria wont stop at anything.
Are these guys stupid to think that someone would actually write a check for a dumb reply on a message board or is it that there are stupid websurfers (I guess they target americans) that actually write such checks.
We should be doing so and writing such checks, else why would these guys do such emails and posts.
Who is stupid?, I guess we Americans are, else why would we create the housing bubble in the first place.October 27, 2006 at 9:21 AM #38562NateKParticipant
It was a joke…Did that fly right by you??? Ok…Maybe I need to be a little more blunt. You really think someone is gonna share information with you if someone is gonna start a business of their own or have plans on it??? And you expecting to get everything for free. Good luck. But just pony up and pay the piper. Mr. Ogobo is waiting and will gladly help.October 27, 2006 at 10:51 AM #38580
That was funny, I totally missed it. I am relived that it is not one of those nigerain pranks.
Good one natek
There were times when I shared some of my business plans with others as I did not have the resources or time to take them forward, Well, I did not mention that I would not mind paying for info as I figured that might be inappropriate on this board.
I was just fishing, hoping to get some info, thats all, no harm done, no one hurt.October 27, 2006 at 11:39 AM #38589guitar187Participant
If you are talking about private money financing. I can be of help obtaining clients for you (for a fee of course). But we would certainly need to talk and go over what you are getting into. There has been significant money to be made in foreclosing on private liens. But that is mostly because of the increase in values. If you want to enter this market now you will want to act quickly. As values decrease so will your profits. Also, the sales cycle to turn these properties becomes much longer when people are waiting to buy because they believe values are going down.October 27, 2006 at 11:41 AM #38592powaysellerParticipant
Have you talked with any lenders about the type of service they need? I heard today that the lenders are really backed up with short sales. Seems like they’d want to contract out some of that work?October 27, 2006 at 1:03 PM #38613
Hello Powayseller – smartlady on the board
Thats a compliment, Other than being a housing bear and having dabbled in a bad financing deal, I do not know much about this business. I havent talked to any lenders, but figured that processing foreclosures was mostly paper pushing (filing NOD’s auction notices and such), which could be done from an office.
Since I dealt with one such company in 2005 at the peak of the boom, they pretty much had no business at that time and shortly after went bankrupt, I believe many foreclosure companies simply shut shop between 2001 and 2005, so am assuming that there should be an opportunity to fill in the void.
C N a Foreclosure Services Inc
San Diego Foreclosure Services Inc – this is the one that went bankrupt
Short sales might be another service that could be offered too. I have the resources and acumen to run a business, I need business know how.
Anyone want to share some info, I can make it worth their time.October 27, 2006 at 1:37 PM #38617October 27, 2006 at 2:05 PM #38620PorkmanDelardoParticipant
I think what newbiz is inquiring about is trustee work (he calls a foreclosure company). Per statutes for most states, lenders cannot foreclose on their loans. they must use the services of a trustee. Sometimes a lawyer, sometime not. Fees that trustees charge are also limited to what the laws allow. The are countless trustees in the state of California. Some are quite large and handle foreclosures in multiple states, and some are small mom and pop shops that just get a few files a month. Usually, the small start-ups are run by ex-employees of larger trustee firms, who try to branch out on their own. You can get more info on the website for the United Trustees Association. (formerly the CA Trustees Assoc.) Most if not all large lenders have their own in-house trustee to handle their foreclosured loans. Just another money making dept for lenders. Ironic that they even make money on their own defaulted loans. Go figure. PorkmanOctober 27, 2006 at 5:07 PM #38647
thank you porkman, I guess I should be checking on trustee service
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