As a smaller foreclosure cleanup business, your business may sign up for outsourcing jobs with larger property preservation companies. You can offer your services in the form of outsourcing for jobs such as inspections, repairs, changes of locks and window panels, lawn maintenance, winterizing, indoor trash removal, outdoor debris removal, etc.

Many of the larger companies are increasingly requiring that smaller subcontractors complete a questionnaire to be considered for foreclosure cleanup outsourcing work with their companies. These questionnaires are simple “kill” tactics so that larger 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 preservation work. Many of the larger companies source a large portion of their property directly from HUD’s management and marketing (M&M) contractors.

M&M contractors literally market and manage single-family properties owned or held by HUD. (These are homes that had an FHA-insured mortgage where the homeowners defaulted. The lender or mortgage company that suffered as a result of the default ultimately transmits the home to HUD in exchange for an insurance claim payment.) .

A property preservation questionnaire can range from the very simple to the ultra-complex. See some sample questions and answers below.

Sample questions and answers

Many questionnaires contain common definition-type questions from the real estate industry in relation to the Department of Housing and Urban Development. For example, a questionnaire might ask the following:

Question: What is the definition of a transportation condition as it pertains to HUD property?

Answer: It could state something very simple, such as the following: For a property to be in Transfer Condition, as far as foreclosure cleanup is concerned, the property must be intact (no flood, fire, hurricane / tornado, furnace damage). , etc.); you have to cut the grass; the property must be sufficiently winterized; all hazardous and unhealthy debris and materials must be removed; and the property must be efficiently addressed and secured, including all pools and hot tubs, at a minimum.

Another sample question that you may encounter in a test may be the following:

Question: Describe in detail the steps you should take when winterizing a property with a dry heat system.

Answer: Dry heat systems. The water heater and all domestic water supply and distribution pipes must be drained sufficiently to prevent freezing and other damage. All valves and taps must remain open during the process. (Once the drainage is complete, they should be closed.) An adequate amount of antifreeze should be placed in all appliance traps, including toilets and tanks.

To differentiate yourself as a potential foreclosure cleanup subcontractor, you could go into more detail in your answer. For example, using the winter readiness question above, you could develop your answer by describing winter readiness requirements in greater detail by pulling information from HUD guidelines (which can be found quite easily by searching the Internet).

For example, you could include the following in your answer:

Answer – Generally, properties must be winterized once between October 1 and March 31, although there may be exceptions based on local requirements. Unless otherwise specified, winterizing should include cleaning toilets and draining all heating and plumbing systems in a manner sufficient to prevent damage and freezing. Air pressure, or in some cases antifreeze, can be used to clean the system and prevent freezing.

All tasks must be performed in accordance with state and local codes and regulations. Before and after photos, along with other supporting documentation, should be submitted for reimbursement.

More sample questions

Here are some more sample questions you may find when taking a foreclosure cleanup subcontractor test (see if you can find the answers online yourself):

During a trash pickup, you notice a motorcycle in very good condition in a detached garage. What should you do?

When does the mowing season begin and end in your geographic coverage area?

Describe the services performed during a formal garbage collection.

What steps should you take if you arrive at what is supposed to be an empty property with a warrant to secure it and discover that it is 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 a test stop you

Although many of the larger and more formalized companies require you to complete a questionnaire to register your foreclosure cleaning business with their companies, many do not. So search the internet, and if a company appears to be suitable for your business from a service standpoint and geographically, don’t let a questionnaire stop you from registering as a potential subcontractor for your company.

Forging alliances is the key to growing your business

Research and attack the quiz with fervor. As the smallest foreclosure cleanup company, landing outsourcing work through the largest preservation companies serving your area can exponentially increase your bottom line.

Many of these larger companies tend to service hundreds of properties at a time, in multiple states. Forging a partnership with the largest property preservation company is the key to truly growing your foreclosure cleaning business.

Many wishes for success with your foreclosure cleaning business.