When it comes to the best business to start in 2010, foreclosure cleanup has to be among the top business opportunities for several reasons. The main one is that the foreclosure crisis is not over. Proof?

Even though the housing sector is starting to recover very slowly, there are still millions of foreclosed properties that have yet to hit the market.

According to leading financial industry experts such as Standard & Poor’s and Moody’s, as of February 2010, there are an estimated 7.7 million homeowners in default on their mortgages. However, these are not being reported by banks as bank-owned (REO) properties.

Many Lenders Don’t Purposely Foreclose because they don’t want to flood the market with more inventory because it will drive home prices back down. In short, foreclosure cleanup companies will have their work cut out for them, for years to come.

Now that you know why starting a foreclosure cleanup business will be a good deal for years to come, here’s what you need to get started.

1. A business license: This is not a business where you can “fly” without a license. To be taken seriously and eligible for things like HUD foreclosure cleanup contracts and foreclosure outsourcing opportunities with your local housing authority, you must be licensed as an official business.

Note: Beginning in March 2010, many housing authorities across the country began receiving stimulus money from the government. This means that local jurisdictions will have money to finance many projects that are ideal for foreclosure cleanup companies and other real estate service companies such as: appraisers, termite and pest control companies, construction contractors, plumbers, electricians, construction companies, etc. roofing, lawn care companies, etc. .

However, you must be a licensed business to be able to engage in any type of foreclosure cleanup work with these government agencies.

2. Safe: Banks, lenders, real estate agents, etc., simply won’t want to deal with your company unless it is properly insured. In fact, says the owner of an Atlanta foreclosure cleanup business, “it’s often one of the first things they ask you when they contact you about work.”

You also need it to protect you, your workers and your property as your foreclosure cleanup business grows.

What type of insurance does your foreclosure cleanup business need?

The answer is, it depends. At a minimum, you’ll need auto insurance and liability coverage for your vehicle(s). If you hire employees, you will also need workers’ compensation. Every part of the country is different and every county has different requirements.

Call the local insurance agencies that serve your area and tell them about the type of business you are starting. They will be able to guide you in making a decision about the type of insurance you need.

As for what you need to start a foreclosure cleaning business, license and insurance, that’s about as far as “going into business.” Now, you’re ready to market to “get the business.”