As Mortgage Contracting Services (MCS) began laying off people in November, their purchase of GIS Field Services has begun dragging profits downward. In fact, the inability to cover rural or even suburban assets has forced MCS to return their focus on a scattered network of misclassified employees as even the recently purchased Five Brothers is incapable of assisting. GIS Field Services was purchased by Littlejohn & Co., the owner of MCS in a secret deal that Foreclosurepedia exclusively reported on, last year. The problem was that Jonathan Dedman Dietz, the former owner of GIS Field Services, had woven a web of pump and dump pricing schemes that both left a bad taste in Labor’s collective mouth and set inspection pricing at $5.90 in many metro areas. And with more than 719 ACTIVE inspection openings at GIS Field Services — that is not a typo as seen from the image — the honeymoon effect is long gone.

MCS is not alone in the alienation of Labor. Spectrum Solutions just dropped their HUD M&M FSM inspection pricing down from the previous $35 per inspection to six dollars. No typo there, either. Both HUD and the Department of Labor are currently looking at claims from Labor that federal violations are occurring. And when you begin to see the drop in volumes at National Field Representatives (NFR) and Cyprexx, combined with the inability of firms like the recently hacked JGM Property Management incapable of completing HUD M&M FSM orders in a timely manner, it doesn’t bode well for Labor.

Enter Commercial Mortgage-Backed Securities (CMBS). As Wolf Street reported in yesterday’s article, Office CMBS Delinquency Rate Spikes to 10.4%, Just Below Worst of Financial Crisis Meltdown. Fastest 2-Year Spike Ever, there is a new game in town.

Inspections on distressed assets generally fall into a couple of categories. First, you have the residential assets that our Industry covers — forward and reverse. The latter is part of the reason MCS snapped up Five Brothers and why MCS CEO Craig Torrance and Chad Mosely, the MCS President of Mortgage Services, were recently talking about skewering Five Brothers like a Thanksgiving Day turkey. From a residential distressed side of things, the residential side is the little engine that couldn’t. While home sales are at their lowest level in decades and interest rates are at historic highs, the reality is that with plenty of equity backstopping another 2008 Crisis, foreclosures are expected to remain low. For October, foreclosure inventory increased by 1,000, but there are 28,000 fewer loans in active foreclosure activity overall. And Fannie Mae on Thursday issued revisions to its 2025 housing market forecast, dropping its estimated gain for existing-home sales next year from 11% to a more muted 4%.

And then you have the commercial side of things. The delinquency rate of office mortgages that have been securitized into commercial mortgage-backed securities (CMBS) spiked by a full percentage point in November for the second month in a row, to 10.4%, now just a hair below the worst months during the Financial Crisis meltdown, when office CMBS delinquency rates peaked at 10.7%, according to data by Trepp, which tracks and analyzes CMBS.

While the threat to the US banking system is low, as many of the loans are spread across a wide array of providers, the salient fact is that they all need inspections and maintenance. This is not something that our Industry is capable of doing. The inspections are pretty straight forward and pay tremendously better; however, the maintenance and what small conversions that are ongoing are night and day when compared to residential assets.

Foreclosurepedia has been working with Labor, for years, in moving them away from the Industry. Through our subsidiary, Digital Matrix Group, we have additionally been doing web development as well as continuing our long and proven track record in the nonprofit sector. While some of our Recruitment postings are free, rebranding into the commercial segment requires a tremendous amount of time and effort. If you are ready to invest in your company and are tired of the Wal Mart greeter work and wages you receive now, feel free to reach out and discuss a Retainer.

As we look ahead to 2025, the landscape for Labor involved in inspections and cleanouts within the foreclosure sector appears increasingly challenging. Economic shifts, rising costs, and changing market dynamics are set to reshape this crucial segment of the real estate industry. Understanding these changes is essential for professionals in the field as they strategize for the future. In fact, Mortgage Contracting Services (MCS) has already been slashing jobs with other National Order Mills handing out pink slips like candy during Halloween. This will dramatically impact Labor when it comes to receiving work orders and getting paid which is the case with Black Dome Services.

Current Market Overview

In the foreclosure sector, inspections and cleanouts are vital services that ensure properties are maintained and ready for resale. These tasks often fall to specialized laborers who understand the nuances of property management and compliance with local regulations. Recently, however, the market has shown signs of strain. In October, the foreclosure inventory saw an increase of 1,000 properties, yet there were 28,000 fewer loans in active foreclosure activity compared to previous months. This paradox highlights a growing backlog of properties that may be lingering in various stages of the foreclosure process, further complicating the work for labor in this sector.

The reasons behind the increase in foreclosure inventory without a corresponding rise in active foreclosures are multifaceted. Economic uncertainty, coupled with higher interest rates, has led many homeowners to remain in their homes rather than face the stress of foreclosure. Additionally, lenders may be more hesitant to initiate foreclosure proceedings, opting instead for loan modifications or other mitigation strategies, which can lead to a buildup of properties that are not yet in active foreclosure.

Fannie Mae’s recent revisions to its 2025 housing market forecast illustrate a broader trend of stagnation. The agency has reduced its projected gain for existing-home sales from an optimistic 11% to a modest 4%. This adjustment reflects a more cautious outlook influenced by rising economic pressures, which are expected to affect consumer behavior and housing demand. The anticipated slowdown in the housing market not only impacts the sales of homes but also reverberates throughout the foreclosure sector, affecting inspections and cleanouts.

Economic Pressures and Rising Costs

The anticipated slowdown in the foreclosure sector is intertwined with broader economic challenges. Inflation has significantly impacted household budgets, leading to increased costs for essential goods such as food, fuel, and rent. According to recent reports, inflation rates have remained stubbornly high, prompting the Federal Reserve to adjust its monetary policy in an attempt to stabilize the economy. These rising expenses are squeezing consumers, reducing their disposable income and potentially dampening demand for new home purchases or foreclosed properties.

For labor in the foreclosure sector, this economic environment poses a dual challenge. Not only are they likely to face decreased demand for inspections and cleanouts as fewer properties are actively sold, but the costs associated with conducting these services are also on the rise. Elevated fuel prices, coupled with increased costs for materials and labor, mean that businesses must navigate tighter margins while striving to maintain service quality. The increased cost of living can also affect labor availability, as workers may seek higher wages or alternative employment opportunities in more stable sectors.

The rising cost of materials — whether for repairs, landscaping, or cleaning supplies — has made it more difficult for companies to offer competitive pricing. As a result, many businesses in the foreclosure sector may need to reevaluate their pricing structures and service offerings. This could lead to a consolidation of smaller firms, as only those with sufficient resources to weather these economic pressures may survive.

The Outlook for Labor in Inspections and Cleanouts

Given these economic dynamics, the labor force in the foreclosure sector must adapt to a new reality. As the market contracts, companies may need to explore rebranding strategies to remain viable such as working direct with private management firms. Moreover, as the foreclosure inventory increases without a corresponding rise in active foreclosures, labor may need to pivot towards maintaining properties rather than focusing solely on cleanouts. This shift could open new avenues for work, such as property management or maintenance services for lenders holding distressed assets. Companies might also consider offering value-added services, such as staging properties for sale or providing repair and renovation services, thus creating additional revenue streams.

Training and development will be crucial for the workforce in this evolving landscape. IAFST University has been retraining Labor in multiple pathways which are producing higher wages. As the nature of work changes, laborers will need to upskill to meet new demands. This could involve acquiring new certifications in property management, learning about sustainable practices, or gaining expertise in specific repair techniques. Investment in workforce development will not only enhance individual capabilities but also contribute to overall industry resilience.

Conclusion

The outlook for labor in the foreclosure sector by 2025 suggests a period of adjustment as economic pressures reshape the market landscape. With decreased activity in active foreclosures and rising operational costs, professionals in this field will need to be proactive and adaptable. By embracing new strategies, focusing on efficiency, and investing in workforce development, the foreclosure labor market can navigate these challenges and find pathways to sustainability in a changing economic environment or, in the alternative rebrand into new avenues.

As we move forward, staying informed about economic trends and consumer behavior will be crucial for those involved in inspections and cleanouts, ensuring they remain resilient in the face of uncertainty. Building strong relationships with lenders, real estate agents, and property management firms can also provide valuable insights and opportunities, allowing laborers to adapt their services to meet the evolving needs of the market.

Furthermore, engaging with industry associations such as the International Association of Field Service Technicians (IAFST) and participating in networking opportunities can help professionals stay abreast of best practices and emerging technologies that can enhance their operational efficiency.

In conclusion, while the foreclosure sector faces significant challenges as we approach 2025, there are also opportunities for growth and adaptation. By proactively addressing economic pressures, investing in skills development, and embracing innovation, laborers in the foreclosure industry can position themselves for success in a more competitive and fluctuating market. Ultimately, resilience and adaptability will be key to thriving in this evolving landscape, ensuring that the essential services provided by inspections and cleanouts continue to meet the demands of the housing market.

As foreclosures crank up in the aftermath of Hurricane Helene and 24 Asset Management continues to refuse to pay Labor, people like Maria Saralegui, Dylan Braithwaite, Breanna Byars, and Jamie Mackle are licking their chops. The minions of Fast Eddie San Roman are all hoisting the flag of profit over people. In fact, we published on the horrors of non payment at 24 Asset Management and even HUD came forward with an official whom you may contact to be paid, if your claim has merit. In September 2024, Hurricane Helene struck the southeastern United States, causing catastrophic damage across various regions, including Florida, Georgia, Tennessee, and Western North Carolina. While the storm primarily impacted coastal areas, the effects were felt deeply in mountainous communities, where heavy rainfall led to flash floods, landslides, and significant destruction. As residents began to assess the damage, they faced a grim reality: support from FEMA and the SBA had run out of money, leaving many feeling abandoned by their government in a time of dire need.

Hurricane Helene unleashed relentless rain and powerful winds upon Western North Carolina, resulting in widespread flooding and infrastructure failures. Communities that had never experienced severe flooding were suddenly inundated, with roads washed away and homes damaged beyond repair. In the aftermath, residents were left without basic necessities: food, clean water, and electricity. Many families were displaced, seeking refuge in temporary shelters or with relatives, while others remained trapped in their homes, unable to leave due to blocked roads.

The emotional toll of the disaster was profound. Families watched as their possessions were swept away, and the sense of security they once felt in their homes was shattered. The immediate response from local emergency services was commendable, with first responders working tirelessly to rescue those stranded and provide aid. However, as days turned into weeks, the lack of federal support began to weigh heavily on the community. In the aftermath, though, the silence is deafening and the US government has left town for the next 15 second soundbite.

As the initial shock of the hurricane faded, the reality of recovery set in. Many residents applied for assistance from FEMA and the SBA, hopeful for the financial support necessary to rebuild their lives. However, it soon became apparent that the funding available was insufficient — and now non existent — to meet the overwhelming need. FEMA’s resources were stretched thin, and the SBA was unable to provide loans to all who applied, leaving countless individuals and small businesses in financial limbo.

With the federal aid dwindling, many residents resorted to local charities, churches, and community organizations for help. While these grassroots efforts were invaluable, they were not enough to fill the financial gaps left by the lack of governmental support. Essential services, such as mental health counseling, food distribution, and housing assistance, became overwhelmed as the community leaned on them more heavily than ever.

The situation in Western North Carolina has fostered a pervasive feeling of abandonment among residents. Many expressed frustration and anger towards the government, feeling that their needs were overlooked in favor of more populous areas. The perception that federal aid was disproportionately allocated created a sense of injustice, eroding trust in public institutions. Town hall meetings were filled with residents voicing their concerns, pleading for more support, and sharing their heart-wrenching stories of loss and hardship.

For many, the emotional scars of the hurricane were as significant as the physical damage to their homes. The stress of uncertain recovery, compounded by financial strain, took a toll on mental health. Community members reported rising levels of anxiety and depression, as the hope of rebuilding began to wane. The feeling of being left to fend for themselves in the wake of such a disaster deepened a sense of isolation and despair.

Despite the challenges, the resilience of the people in Western North Carolina shone through. Community members banded together, forming support networks to assist one another in the recovery process. Local businesses stepped up to help, providing meals and resources to those most affected. Grassroots organizations worked tirelessly to raise funds and distribute aid, showcasing the strength and unity of the community. However, the long-term recovery will require more than just local efforts. Advocacy for increased federal support is essential. Residents are calling for a reevaluation of how disaster relief funds are allocated, emphasizing the need for equitable distribution to ensure that rural and underserved areas receive the assistance they need during times of crisis.

The devastation of Hurricane Helene in Western North Carolina serves as a stark reminder of the vulnerabilities faced by communities during natural disasters. As residents continue to navigate the complexities of recovery without adequate federal support, their resilience and determination to rebuild must be recognized and supported. It is imperative for government agencies to listen to the voices of these communities and address the gaps in disaster relief to ensure that no one is left behind in the wake of such tragedies. It is critical to get Labor paid as they assist with the inspections and perform services on insurance claims. The road to recovery may be long, but with collective effort and renewed commitment from all levels of government, Western North Carolina can emerge stronger from the devastation of Hurricane Helene.

If you take the time to research any of the National Association of Mortgage Field Services (NAMFS) Big 5 in the Industry, you are going to find one thing in common — they all use artificial intelligence (AI). The correlation between the adoption of AI and the firing of employees at the Big 5 is a testament to the goal of removing employee interactions with contractors. While the aspirations of cost cutting are noble to the institutionally based national order mills, the reality is AI is creating a virtual nightmare for contractors attempting to reach a human for intervention. In fact, it is causing more time to complete tasks originally overseen by employees. And as contractors are both loosing money for missing deadlines for inspections, bids, and services, ironically so to is Management. In the same way that Management is violating the principals of employee misclassification, so to they are refusing to create an AI Bill of Rights for Labor — the very Labor that makes profit for Management.

While the promise of AI technology is often marketed as a pathway to efficiency and cost reduction, a deeper analysis reveals a troubling trend: the systematic replacement of human labor with automated systems that not only dehumanize the workplace but also undermine the very foundations of labor rights. The correlation between AI adoption and workforce reduction is striking. As these major players in the mortgage field services industry increasingly turn to AI to manage their operations, the human element is being systematically stripped away. This shift is not merely an operational choice; it represents a fundamental change in how businesses interact with their contractors. The goal is clear: minimize employee engagement and cut costs at all levels. However, this approach is far from beneficial for the contractors who find themselves caught in a web of automated processes.

Contractors, who are often the backbone of these operations, are facing unprecedented challenges. The reliance on AI has resulted in a frustrating labyrinth of virtual interactions, making it exceedingly difficult to reach a human for assistance or intervention. What was once a straightforward process is now riddled with delays, as contractors struggle to navigate systems designed without their input or consideration. The irony is palpable: while management seeks to save time and money through automation, the reality is that tasks that were once efficiently handled by employees are now taking longer to complete.

The consequences of this shift extend beyond mere inconvenience. Contractors are losing income due to missed deadlines for inspections, bids, and services — directly tied to the inefficiencies introduced by AI systems. As these operational challenges mount, it becomes clear that the cost-saving measures intended for management are, in fact, creating a financial burden on those who are essential to the process. This scenario raises critical questions about the sustainability of a business model that prioritizes automation over the ability for Labor to engage in the inspections or bidding process. It is elementary that if AI misinterprets the submission of photos, based upon its erroneous algorithm, it is a circular journey through the seven planes of hell before a human MIGHT be reached. Moreover, though, when you have one vendor manager overseeing hundreds of contractors and geographic areas, the fallout is skewed against Labor.

The persistent issue of employee misclassification compounds these challenges. Many contractors find themselves in precarious positions, lacking the protections and rights afforded to traditional employees. This misalignment not only jeopardizes their financial stability but also undermines their ability to advocate for fair treatment and equitable working conditions. As they navigate a landscape increasingly dominated by AI, these workers are left without the safety nets that should accompany their labor.

The implications of AI in the workplace extend beyond financial concerns; they also encompass the psychological toll on contractors. The shift toward automation often leads to feelings of isolation and frustration. When contractors are unable to engage with human representatives, they experience a disconnect that can significantly impact their job satisfaction and mental well-being. The human element of work — communication, collaboration, and support — becomes a distant memory, replaced by cold algorithms and automated responses.

This dehumanization can foster a culture of disengagement, where contractors feel undervalued and replaceable. When individuals perceive their work as merely a series of tasks to be completed by a machine, their motivation and morale can plummet. This not only affects their performance but also has broader implications for the industry as a whole. A disengaged workforce is less likely to deliver high-quality services, ultimately undermining the very efficiency that AI is supposed to enhance.

As the landscape of work continues to change, the demand for an AI Bill of Rights for Labor becomes increasingly urgent. Just as society has recognized the need for regulations governing technology’s impact on privacy and data security, so too must we establish frameworks that protect workers from the adverse effects of automation. An AI Bill of Rights could ensure that workers have access to human support when navigating automated systems, safeguard against misclassification, and uphold the principles of fair labor practices.

Such a bill could outline several fundamental rights for workers in an AI-driven environment. For instance, it could mandate that businesses maintain a minimum level of human oversight in automated processes, ensuring that contractors can access assistance when needed. Furthermore, it could establish clear guidelines for the classification of workers, protecting contractors from exploitative practices that strip them of their rights and benefits.

This call to action is not merely about resisting change; it is about demanding a seat at the table as the future of work is being shaped. It is essential for contractors, labor advocates, and policymakers to collaborate in crafting guidelines that prioritize human dignity and workers’ rights in an age dominated by technology. By coming together, stakeholders can forge a path toward a more equitable and sustainable future for all workers in the industry.

One of the most powerful tools available to contractors facing these challenges is solidarity. By banding together and forming collective organizations or unions, such as the International Association of Field Service Technicians (IAFST), contractors can amplify their voices and advocate for their rights more effectively. Collective action has historically been a catalyst for change in labor rights, and in the face of AI-driven automation, it remains a critical strategy which both Foreclosurepedia and the IAFST are delving into.