Another Bank Bites the Dust and How the Foreclosure Cleanup Industry Will Reap the Benefits

Another Florida bank has closed up shop. Banks are closing all over the country, which can mean small business contracts for foreclosure cleanup businesses who are poised to contact the failed banks’ acquiring or assuming institutions.

See a partial list of failed banks profiled on the Federal Deposit Insurance Corporation’s (“FDIC”) website in February of 2010. An independent agency of the federal government, the FDIC was created in 1933 in response to thousands of bank failures that occurred in the 1920s and in the early 1930s. Seems the trend has re-occurred with a vengeance over the last year and a half.

FDIC’s List of Failed Banks for 2010 (as of February 20, 2010):

* Marco Community Bank, Marco Island, FL, Closed Date — February 19, 2010

* La Jolla Bank, FSB, La Jolla, CA, Closing Date — February 19, 2010

* George Washington Savings Bank, Orland Park, IL, Closed Date — February 19, 2010

Florida Community Bank Closes

The latest failed institution listed for Marco Island, Florida is Marco Community Bank in Marco Island, Florida. On Friday, February 19, 2010, the bank was closed by the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation was named as the Receiver.

According to the FDIC, no advance notice is given to the public when a financial institution closes up shop.

All of the community bank deposit accounts, please visit:- excluding certain brokered deposits, have been transferred to Mutual of Omaha Bank, Omaha, NE (the “assuming” or “acquiring” institution) and will be available immediately.

The formerly known community bank will now reopen as a branch of the Mutual of Omaha Bank during its regular business hours.

What This Means for Foreclosure Cleanup Businesses

The acquiring (or assuming) institutions of failed banks can be fertile ground for foreclosure cleaning business contracts. How? Because these assuming institutions will now have all of these new assets to manage; and many of these new assets will be real estate assets (which will include homes in default and homes that are undergoing the foreclosure process).

These new real estate assets will ultimately need some form of property preservation and foreclosure cleaning services.

Foreclosure cleanup business owners who are poised to reach out quickly to these newly appointed acquiring institutions offering their company’s services can grow their businesses by seeking cleanup contracts. Properties that have been foreclosed upon will need securing in the form of window boarding and lock changing, debris removal, yard work and interior and exterior inspections.

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