As a smaller foreclosure cleaning company, your company can engage in subcontracting work with larger property preservation companies. You can offer your services on a subcontracted basis for labor such as checks and repairs, lock changes, window boarding, lawn maintenance, winterization, indoor trash dumping, outdoor debris removal, and so on.
Many larger companies increasingly require a smaller subcontractor to complete an exam to be considered for foreclosure cleanup by subcontracting their company. These quizzes are simple “elimination” tactics so that large companies can source the most qualified subcontractors.
Are you familiar with HUD guidelines?
Many of these mini-tests are designed to determine your level of understanding of HUD’s guidelines for property conservation work. Many large corporations obtain a significant amount of their holdings directly from HUD’s management and marketing (M&M) contractors.
M&M Contractors literally markets and manages single-family properties owned by HUD or in the custody of HUD. (These are homes that had an FHA-insured mortgage where the homeowners defaulted. The lender or mortgage company that suffered the default ultimately bonds the home to HUD in exchange for payment of the insurance claim.)
Property preservation testing can range from very simple to very complex. Check out some sample questions and answers below.
Sample questions and answers
Several quizzes contain frequently asked questions about defining the real estate industry as it relates to the Department of Housing and Urban Development. For example, the test may ask for the following:
a question: What is the definition of a transfer clause as it relates to the HUD feature?
Answer: You could state something very simple, like the following: For the property to be in transfer, as it relates to foreclosure cleanup, the property must be undamaged (not damaged by flood, fire, hurricane/hurricane, boiler, etc.); The grass must be cut. The property must be adequately winterized; All debris and hazardous and unsanitary materials must be removed; And the property must be efficiently secured and secured, including all pools and hot tubs, at a minimum.
The following might be another sample question you may encounter on the test:
a question: Please describe in detail the steps you should take when equipping a property with a dry heating system in winter.
Answer: dry heat systems. The hot water heater and all domestic water supply and distribution piping must be adequately drained to prevent freezing and other damage. All valves and taps must remain open during the process. (After drying is complete, they should be closed.) An appropriate amount of antifreeze should be placed in all traps, including toilet bowls and tanks.
To distinguish yourself as a potential foreclosure cleanup subcontractor, you can go into more detail in your answer. For example, using the winter question above, you can clarify the answer by describing the winter requirements in more detail by pulling information from HUD guidelines (which can easily be found by searching the internet).
For example, you could include the following in your answer:
Answer – In general, properties must be winterized once between October 1st and March 31st, although exceptions can be made based on local requirements. Unless otherwise specified, winterization should include flushing toilets and draining all heating and plumbing systems in a manner sufficient to prevent damage and freezing. Air pressure, or antifreeze in some cases, can be used to clean the system and prevent freezing.
All tasks must be performed in compliance with state and local laws and regulations. Before and after photos must be submitted, along with other supporting documents, for reimbursement.
More sample questions
Here are some sample questions you encounter when taking a foreclosure cleaning subcontractor test (see if you can find the answers online yourself):
While taking out the trash I noticed a motorbike in very good condition in a separate garage. What should you do?
When does the lawn mowing season start and end in your geographic coverage area?
Describe the services that are performed during the formal waste disposal process?
What steps should you take if you arrive at what is supposed to be an empty property with an order to lock it and find it occupied by someone?
All of the above answers can be found in the HUD guidelines, which, again, can be easily found online.
Don’t let the test discourage you
Although many of the larger and more formal companies require that you complete an exam to register your foreclosure cleaning business with their companies, many do not. So search online, and if a company seems like a good fit for your business in terms of service and geography, don’t let testing stop you from signing up as a potential subcontractor with their company.
Forming alliances is key to growing your business
Do your research and attack the test with gusto. As a smaller foreclosure cleaning company, having subcontract work via the larger custodians that service your area can add exponentially to your bottom line.
Many of these large companies often service hundreds of properties at once, across several states. Forming an alliance with a larger property preservation company is the key to truly growing your foreclosure cleaning business.
I wish you success in your foreclosure cleaning business.