Failed banks can be a huge source of new contracts for smaller foreclosure cleanup businesses.
In my meeting with an FDIC executive a few weeks back, I was urged to make direct contact with failed banks for foreclosure cleanup work in my geographic area. Apparently, many of the “acquiring institutions” (banks that ultimately takeover a failed bank’s assets) are simply overwhelmed.
The FDIC is the receiver of these failed banks, but they are ultimately acquired by other banks because everyday banking business must continue for a failed bank’s customers.
Often the FDIC and these acquiring institutions use larger property preservation companies to handle maintenance of the failed bank’s real estate assets. But these big property preservation companies are, in many cases, simply taking too long to handle all the requests for foreclosure cleanup work because they are overwhelmed with the number of properties. These larger companies are increasingly behind on inspections, appraisals, yard maintenance, cleanup and the like.
That’s good news for the smaller foreclosure cleanup company that has its ducks in a row: proper registration, license and insurance.
Where to Find Failed Banks To find failed banks in your area (with complete contact info for the acquiring banks), visit this website and follow these steps:
Visit website: http://www.fdic.gov/bank/individual/failed/banklist.html.
For example purposes, click on the First State Bank in Flagstaff, Arizona(as of this newsletter writing, it is the 4th bank down on the list. The bank’s name is an actual hyperlink and will take you to the failed bank’s info page).
Then, click on “XII. First State Bank Contact Information.” This is also a hyperlink and will take you to the contact info for First State Bank. But, remember, First State Bank is out of business, so we want to know who the acquiring institution is. So …
When you get to the contact info page (from Step 3 above) of First State Bank, click on “1. ACQUIRING INSTITUTION(S).” This link will give you the contact info for the acquiring institution. We’re almost there. If you see an 800 number, which is often the case, you may want to ignore it and simply send a mailer to the acquiring institution’s street address, which will be listed. An 800 # may get you Customer Service, which may be of no help, but at least you will have a street address to which you can mail correspondence.
To get to the meat of what you really want, scroll down that same page a bit until you get to Real Estate Owned (or scroll back up the page and click on Real Estate Owned, which will take you to the Real Estate Owned Contractor). This section will usually have a real person’s contact name, phone, fax, and/or email. BINGO! This is what you want. Call them and ask them if you can send them some info about your company. Tell them what you do and how you can begin helping the acquiring bank immediately with their foreclosure cleanup needs.
In some instances you will not readily see the acquiring bank’s information, but poke around the website a little and find what you need.
Build Your Roster of Failed Banks and Grow Your Business
Start building a roster of failed banks in your geographic area and stay in touch with them to grow your business (win “mind share,” remember). Visit the failed bank’s website above often to find newly closed failed banks.
Get on the FDIC’s “Failed Banks” Mailing List
To get on the FDIC’s mailing list so you can be notified immediately when a bank closes, visit this link and follow the free subscription instructions: https://service.govdelivery.com/service/multi_subscribe.html?code=USFDIC.
Failed Banks Listed by Month
Visit this link to see which banks closed in which month: http://www.fdic.gov/bank/historical/bank/index.html.
Failed Financial Institution Contact Search
Visit this link to search for a failed bank by name: http://www2.fdic.gov/drrip/cs/index.asp.
Good luck with your foreclosure cleanup business!
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