Safeguard Properties Property Preservation Procedures Manual

SAFEGUARD PROPERTIES
2011 Property Preservation Procedures Manual
Confidentiality Clause for Property Preservation Procedures Manual ..........................................5 Confidentiality Clause Relating to Contractors ............................................................................5 A Letter from the CEO...............................................................................................................6 Purpose of the Manual ................................................................................................................7 Independent Contractor Status....................................................................................................7 Office Hours...............................................................................................................................7 Technological Tools Required of Safeguard Contractors.............................................................8 An Introduction to Safeguard Properties.....................................................................................9 SECTION 1: Contractor Information...............................................................................................10 Acknowledgement Form...........................................................................................................11 SECTION 2: Safeguard Policies and Info .........................................................................................13 Email Procedures ......................................................................................................................13 Fax Procedures .........................................................................................................................13 Invoice Procedures....................................................................................................................13 Photo Documentation ..............................................................................................................14 Basic Photo Requirements ........................................................................................................14 Lock Changes ...........................................................................................................................15 Winterizations ...........................................................................................................................15 Boarding ...................................................................................................................................16 Screening ..................................................................................................................................16 Broken Windows / Replacing Glass..........................................................................................16 Slidebolts ..................................................................................................................................16 Grass Cuts ................................................................................................................................16 Hedge Trim...............................................................................................................................17 Debris .......................................................................................................................................17 Bids...........................................................................................................................................17 Damages ...................................................................................................................................17 Evictions...................................................................................................................................17 Occupied Properties, Service Calls, Trip Charges ......................................................................18 SECTION 3: Property Preservation Department..............................................................................19 General Overview .....................................................................................................................19 Professional Conduct ................................................................................................................19 Media Procedure .......................................................................................................................19 Contractor Memos ....................................................................................................................19 Receiving Work Orders.............................................................................................................19 Updating Work Orders - Vendor web .......................................................................................20 Performance Percentage Value On Time Percentage and JAFFA Score Combined................20 Cancellations.............................................................................................................................21 Trip Charges .............................................................................................................................21 Safeguard Property Stickers.......................................................................................................21 Verification of Vacancy .............................................................................................................22 Locating Properties ...................................................................................................................22 Vacant Mobile / Manufactured Homes.....................................................................................23 Work Order / Photo / Billing Procedures ....................................................................................25 Contractor Discounts................................................................................................................25 Locks and Securing Procedures.....................................................................................................26 Locks and Securing - Photos .....................................................................................................26
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Locks and Securing - Billing ......................................................................................................26 Securing of Secondary Doors: Deadbolts and Slide Bolts ..........................................................26 Give Access Procedures ................................................................................................................27 Give Access - Photos ................................................................................................................27 Give Access - Billing .................................................................................................................27 Boarding / Screening / Re-glazing Procedures..........................................................................27 Boarding / Screening / Re-glazing - Billing...............................................................................28 Winterization Procedures ..............................................................................................................29 Winterization Definitions..........................................................................................................29 Winterization - Photos ..............................................................................................................31 Winterization - Billing ...............................................................................................................32 Yard Maintenance Procedures.......................................................................................................33 Grass Cut - Photos....................................................................................................................33 Grass Cut - Billing.....................................................................................................................34 Snow Removal Procedures............................................................................................................35 Snow Removal - Photos............................................................................................................35 Snow Removal - Billing.............................................................................................................35 Debris Removal Procedures ..........................................................................................................36 Debris Removal - Billing ...........................................................................................................37 Damages Procedures.....................................................................................................................38 Water Damage ..........................................................................................................................38 Flood Damage ..........................................................................................................................38 Vandalism Damage ...................................................................................................................38 Fire Damage .............................................................................................................................39 Conveyance Maintenance Procedures........................................................................................39 Convey Maintenance - Photos...................................................................................................39 Convey Maintenance - Billing....................................................................................................39 Convey Condition Requirements...............................................................................................39 Eviction Procedures......................................................................................................................41 Evictions - Photos.....................................................................................................................41 Evictions - Billing......................................................................................................................42 City Citations ................................................................................................................................43 Exterminating ...........................................................................................................................43 Utility Orders ............................................................................................................................43 Vehicle Removal .......................................................................................................................44 Roof - Patch and Repair ...........................................................................................................44 Mold and Roof Bids Requirements ...........................................................................................44 Sump Pumps.............................................................................................................................45 Firearms and Illegal Substances .................................................................................................45 Legal Complaints ......................................................................................................................46 Utilizing Subcontractors............................................................................................................46 Open Order / Incomplete Order Reports.................................................................................48 Property Preservation C h a r g e - B a c k Policy............................................................................48 Safeguard Property Preservation Payment Policy ......................................................................49 Estimates and Bids........................................................................................................................51 Estimates and Bidding - Photos ................................................................................................51
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Estimates and Bidding - Billing .................................................................................................51 Excessive Bids...........................................................................................................................51 Adjusted Invoices .....................................................................................................................51 SECTION 4 Hazard Insurance Claims Department.......................................................................53 General Overview .....................................................................................................................53 Updating Procedures.................................................................................................................53 Work Order / Photo / Billing Procedures ................................................................................53 Insurance Inspection Procedures ..............................................................................................53 Itemized Estimates Procedures .................................................................................................54 Insurance Inspection - Photos...................................................................................................54 Insurance Inspection - Billing....................................................................................................54 Give Access Procedures ............................................................................................................55 Give Access - Photos ................................................................................................................55 Give Access - Billing .................................................................................................................55 Scope Verification Procedures...................................................................................................55 Scope Verification - Photos.......................................................................................................55 Scope Verification - Billing........................................................................................................55 Miscellaneous Work Orders ......................................................................................................56 Miscellaneous - Billing...............................................................................................................56 Hazard Claims Payment Policy..................................................................................................56 SECTION 5 Safeguard Repairs......................................................................................................57 Receiving Repair Work Orders..................................................................................................57 Updating Procedures for Repairs...............................................................................................57 Repair Photo Policy ..................................................................................................................58 Repair Billing Procedures ..........................................................................................................58 Repair Payment Policy ..............................................................................................................59 SECTION 6 Photo Examples of Work Performed ........................................................................60 SECTION 7 Information Security Awareness................................................................................61
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Confidentiality Clause for Property Preservation Procedures Manual All provisions, information, procedures and processes contained in this Property Preservation Procedures Manual (Manual) are confidential, proprietary and privileged information of Safeguard Properties, LLC (Safeguard). This information is being shared with you solely as a result of your status as a contractor for Safeguard. Safeguard considers this Manual, all information of any kind contained herein, and any updates, amendments, additions and/or modifications of this Manual, to be confidential and proprietary information and trade secrets, which are Safeguards intellectual property. You hereby acknowledge and agree that you shall not copy, use, disclose or publish or otherwise communicate, whether verbal, written or electronically, any of the information, provisions, contractual terms or processes in this Manual, or the Manual itself, to any third parties without the prior written authorization of Safeguards CEO. Safeguard considers any unauthorized use of the Manual or the provisions, information or processes contained herein to be unauthorized disclosure of confidential and proprietary information, theft of Safeguards trade secrets, and damaging to our business. Any unauthorized use or communication may subject you to civil and/or criminal penalties under applicable federal, state or local law, injunctive relief and shall result in you and/or your organization being removed from Safeguards contractor list. Confidentiality Clause Relating to Contractors As a contractor for Safeguard, you shall keep and maintain any and all information you receive from Safeguard (Confidential Information) on a confidential basis. Confidential Information includes, but is not limited to, information relating to properties, the financial status of the property holder (i.e., eviction proceedings), the status of the property itself (i.e., foreclosure, default, etc.), loan information of any kind, Safeguard pricing, any pricing-related information, any information regarding the compensation you receive from Safeguard for work and services performed and assignments you have or are performing relating to a property. Please be informed that any information concerning pricing or compensation is considered to be a trade secret and Safeguard intellectual property. NOTE: This is not an exhaustive list of information that Safeguard believes to be confidential and proprietary. Copying, using, distributing, or any other type or manner of disclosing Confidential Information to any third party, including but not limited to property holders, without the prior written consent of Safeguards CEO, is strictly prohibited. This prohibition shall apply to any type or manner of unauthorized communication, whether verbal, written or electronic. Electronic communication includes, but is not limited to, communication by email, chat room, internet, blogs, instant or text messaging. Any unauthorized use or communication may subject you to civil and/or criminal penalties under applicable federal, state or local law, injunctive relief and shall result in you and/or your organization being removed from Safeguards contractor list. If you have any questions regarding this policy, please do not hesitate to contact Safeguards Vice President of Operations. ACKNOWLEDGED AND AGREED: __________________________________________ BY: _______________________________________________________________________ COMPANY NAME: _________________________________________________________ VENDOR CODE: ___________________________________________________________ DATE: _____________________________________________________________________
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A Letter from the CEO Safeguard Properties 7887 Safeguard Circle Valley View OH 44125 Phone 1-800-852-8306 216-739-2900 Dear Contractor: Safeguard Properties was founded in 1990 and specializes in the servicing of properties within the mortgage industry. Safeguard Properties has evolved into a recognized national company and has diversified its services to include Field Inspections, Property Preservation, REO, Title, Valuations, Asset Management and Hazard Claims Recovery. Our success is directly attributed to our operating philosophy to provide a high quality, reliable service to our clients in a timely manner. We are able to achieve this success through our national network of quality, professional contractors who are dedicated to providing a premiere service to Safeguard Properties. Safeguard's Office is located in Cleveland, Ohio and has office hours from 6:30 AM EST to 1:00 AM EST. If you have any questions regarding the above referenced forms or Safeguard Properties procedures, please feel free to contact us. We look forward to a long and positive working relationship. Sincerely,
Robert Klein
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Purpose of the Manual This manual will function as an informational guide regarding the Policies and Procedures Safeguard requires you to follow as a condition of doing business with us. These Policies and Procedures apply to each Work Order you receive from Safeguard. You should refer to this handbook if you have a policy question. However, please keep in mind that Safeguard reserves the right to add to, change, amend and/or delete any policy at any time, with or without notice. If you have any questions regarding a specific policy or how the company interprets its policy, please contact the Preservation Department. This manual document sets forth the Policies and Procedures you are required to follow whenever you perform any work order for Safeguard Properties Independent Contractor Status This manual shall not be construed as creating an employee/employer agency, partnership, or joint venture relationship between you or any of your agents and employees, and Safeguard Properties, its employees, agents, officers and/or affiliates. It is the clear intent of the parties that every contractor performing work for Safeguard Properties shall be and remain an independent contractor and shall not be deemed employees or agents of Safeguard Properties. No contractor has the right to receive work from Safeguard Properties. Work is awarded based on performance only and is determined on an individual basis. Office Hours
CUSTOMER SERVICE: BILLING QUESTIONS:
8:00 A.M EST. THRU 12:00 A.M. EST. 8:00 A.M. EST. THRU 12:00 A.M. EST.
OPEN ORDER QUESTIONS: 8:00 A.M. EST. THRU 12:00 A.M. EST. ACCOUNTING QUESTIONS: 8:00 A.M. EST. THRU 6:OO P.M. EST. ORDERING LOCKS: HAZARD CLAIMS: 8:00 A.M. EST. THRU 3:00 P.M. EST. 8:00 A.M. EST. THRU 5:00 P.M. EST
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Technological Tools Required of Safeguard Contractors The following are technological tools Safeguard Properties requires its contractors have: Pager Cell Phone E-mail Capabilities Digital camera Answering machine Fax machine Scanner Wireless Service
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An Introduction to Safeguard Properties
A Brief Overview
Safeguard's clients include mortgage lenders and mortgage servicing companies throughout the United States. Safeguard Properties performs a variety of services to its clients. Safeguard performs property inspections, property preservation, appraisals and title/document retrieval, hazard claim insurance recovery, itemized estimates of damages and complete property repairs. The following is a short overview of each department's functions.
Property Inspections
Monthly Property Inspections Collection Interviews Pre-Foreclosure Notification Sale Date Inspections 24 Hour Rush Inspections Loss Mitigation Verification Inspections Commercial Property Inspections Occupancy checks Special projects
Property Preservation
Safeguard may provide one, several or all services to a client., including: Initial securing Winterization Monthly grass cuts Clear for conveyance/sale Eviction/move-out assistance Environmental studies REO trash-outs
Appraisal/BPO/Title Document Retrieval

Drive-by Appraisals Full interior appraisals Broker's Opinion - Freddie Mac and Fannie Mae approved Title search/Limited title search Assignment Filing Claims: filing, negotiation, settlement Adjuster's Scope Verification Coverage Opinions Repair Estimates Repair/Project Management
Hazard Insurance Claim Recovery / Repairs
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SE CT IO N 1: C on tra ct or I n fo r ma t i on
Request for Proof of Insurance Safeguard Properties has contracts with a number of its clients that require Safeguard and its subcontractors have Comprehensive General Liability, Errors and Omissions, Non-Owned & Hired Auto Liability coverage as well as Workers Compensation coverage. In order for a contractor to begin and continue business with Safeguard, the following INSURANCE COVERAGE IS REQUIRED: Commercial General Liability* in the amount of $1 million per occurence/$1 million aggregate including: Personal injury/Advertising injury protection Care/Custody/Control coverage in the amount of $50,000. Errors & Omissions in the amount of $1 million per occurence/$1 million aggregate covering: Residential property inspections Delinquent borrower interviews Commercial property inspections Insurance loss inspections Eviction services Property preservation inspections Property preservation estimates Property preservation services (including but not limited to REO services) Property repair estimates Property rehabilitation services Merchant site verifications You must contact your insurance agent and instruct them to add "SAFEGUARD PROPERTIES" as an ADDITIONAL INSURED under all your liability policies; You must deliver to Safeguard Properties insurance certificates with: SAFEGUARD PROPERTIES. listed as ADDITIONAL INSURED. The Certificate of Insurance must provide for a minimum of 30 days Notice of Cancellation/Non-Renewal or Material Change to the subject policy. You must submit to Safeguard proof of your participation in your state's Workers Compensation fund: Proof is a copy of the Workers Compensation certificate for the state that you have paid in. If your company operates in more than one state, submit a copy of the certificates for each of the states where you do business; Proof of renewal of all insurance coverage IS REQUIRED in order for you to continue to do business with Safeguard and must be provided on an ongoing basis. Insurance company(ies) must be rated at least A-VII or better by the A. M. Best Company. Please be advised that the failure to obtain and maintain the required insurance and add Safeguard as an additional insured may, at our sole discretion, jeopardize your receipt of continuous work from Safeguard. Please refer to Memo 1117 Vendor Insurance Specifications for more information on requirements.
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Acknowledgement Form
Receipt of Contractor Manual

I acknowledge that I have received and reviewed the Safeguard Properties, LLC (Safeguard) Property Preservation Procedures Manual, that I have read the document in its entirety and that I am required to comply with all policies and procedures set forth in the manual. I also understand that Safeguard reserves the right to update its manual at any time without notice to me.
Background/Credit Checks
I understand that Safeguard may perform background and credit checks on my behalf and I authorize Safeguard to obtain any such information/reports.
Compliance with Laws/Guidelines

I represent and warrant to Safeguard that my performance of services shall comply with all applicable federal, state or local Laws, Rules, Regulations or Ordinances and, without limitation, shall not violate any laws and regulations governing Fair Lending, including without limitation the Fair Housing Act, the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act, the Community Reinvestment Act and all implementing regulations as well as all other applicable federal, state and local laws, rules and regulations governing Fair Lending. Contractor shall observe and comply with all specific state and local laws, rules, regulations, ordinances and guidelines, including but not limited to those concerning: utility shutoff and connection; water meters; removal and storage of motor vehicles or watercraft; vacant, occupied or abandoned property, and; eviction and storage of personal property. I understand and acknowledge that it is my responsibility to conform with and that I shall always comply with all Conventional (CV, FNMA, FHLMC), FHA, VA, HUD, and REO Guidelines, as well as Safeguard policies and guidelines, local ordinances and codes. I understand and acknowledge that my failure to do so may result in damages to Safeguard Properties and/or its clients and that I shall be liable and responsible for said damages. I understand and acknowledge that I may, at Safeguards sole discretion, be required to reimburse all costs directly or indirectly incurred by Safeguard as a consequence of any damages sustained by Safeguard and any other parties.
Additional Insured
In accordance with the insurance requirements in the Safeguard Property Preservation Procedures Manual, I am required to name Safeguard Properties, LLC as an additional insured under my insurance policies.
Chargebacks
In the event Safeguard determines that it is necessary to recover funds from me/my business, Safeguard may, at its option, seek recovery of such funds against any or all of my work orders and it is not limited to any particular work order. In the event that no funds exist for recovery, Safeguard may pursue a collection action against me which may negatively impact my credit rating.
Lien Waiver
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I hereby waive any right to claim any liens, including mechanics liens, against any property (or improvements thereon) upon which I perform work, in order to secure payment for the services furnished. In addition, I shall obtain a Lien Waiver from all of my subcontractors who I hire to perform work on my behalf. Said Lien Waiver shall be the same as that described herein.
Indemnification
I agree to indemnify, defend, and hold harmless Safeguard against all claims, liabilities, costs and expenses (including, without limitation, court costs and attorneys fees) resulting from: 1) My (and/or my subcontractors) failure to obtain, maintain, and timely renew the insurance policies required by Safeguard; 2) My failure to name Safeguard Properties, LLC as an additional insured under my insurance policies; or 3) Any of my subcontractors placing a lien on any property for which they performed work on my behalf for Safeguard.
Choice of Law
I consent to the jurisdiction of the courts of Cuyahoga County, Ohio and waive any objection to proper venue thereto. COMPANY NAME: _______________________________ Signature: _______________________________________ Printed: ________________________________________ Date: __________________________________________ Vendor Code:_____________________________________
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SE CT IO N 2: Saf e g u ard Pol ic i es a nd In f o
Email Procedures Safeguard Properties uses electronic mail exclusively for all correspondence. It is very important that all incoming e-mails be sent to the appropriate department e-mail address. If you need clarification on any SPI email addresses, please contact your regional coordinator. Fax Procedures All work updates/invoices/photos must be transmitted to SPI via the Vendor web. However, in an emergency situation at the request of your regional coordinator or other SPI staff member, you can utilize the fax machine to transmit updates. It is important that all incoming faxes are properly marked so that faxes can be directed to the correct department and forwarded to the correct person. Property Preservation: (216) 739-2714 Hazard Claims/Repairs: (216) 739-2706 List the number of pages contained in the fax. List the work order number of the property. List the department to which the fax is directed, and use each department's dedicated fax line. Indicate the name, phone number and fax number of the person to contact if all pages are not received. Use a cover page for each department if sending multiple faxes to several departments. Invoice Procedures It is the contractor's job to ensure all invoices are received within 24 hours of completion of the work order via the vendor web. When invoicing SPI, you must bill according to FHA/VA, or client pricing. Any additional information requested after the update is received must be received within 24 hours of the request. Safeguard will make every attempt to follow up in order to get this information updated however, if the information is not received by the 21st day from completion date, SPI will increase the contractor's discount by 5% for the additional follow up required. SPI reserves the right to return invoices unpaid when not received within the time frame. All US Mail correspondence to Safeguard MUST be sent to: Property Preservation Department Safeguard Properties 7887 Safeguard Circle Valley View OH 44125
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Photo Documentation The amount of photos taken should tell the complete story of the property condition. Please follow the photo documentation guidelines as noted for each work order in each department's Work/Photos/Billing Procedures section. Please note: If performing repairs, follow repair section photo policy only. Photos are presented to our client with our invoice. All before and after photos must be taken from the same angle. Photo quality is important. Blurry or distorted photos will not be accepted.
General Guidelines:
Photos must support all work performed and/or the bid submitted. If you are billing a charge and have no photos to support that charge, you may not be paid. If our client cannot pay us, we will not be able to pay the contractor for the work performed if not done correctly. Two photos are required of each item of work performed: One before and one after photo that should be clearly marked as such. Please arrange the photos in a logical work order sequence when placing them on the web. For example, before showing window broken and after showing window replaced. Photos must be submitted in color not in black and white. If a photo submitted is unclear, too light/dark or is not sufficient, and cannot be resent via the web, another photo must be taken and the contractor will not be paid for the return trip.
Since contractors use digital cameras to update photos directly to the website, please purge your camera of previous photos before transmitting to us. Make sure that you are renaming the new photos with the correct work order number.
Photos Placed Directly on the Vendor web:

Please make sure that you designate the correct file type: Photos/Update/Invoice The photo, invoice and update must be put on the vendor web at the same time. This will result in quicker billing and more timely payment to the contractor. Dump receipts put on the web must be designated as an update. When sending photos, please make sure that all photos have a file size. Photos sent with no file size will transmit a blank photo that will need to be resent. If sending more than one photo per page or attachment, make sure that all photos on the same page/attachment are facing the same direction on the page. Photos should be in logical work order as stated above in General Guidelines. Make sure that all photos have a caption. For example, before lock change/during lock change /after lock change.
Basic Photo Requirements Below are our guidelines: Front of the house showing the address- for all properties. Condition photos of the interior and exterior of the house. A good way to photograph the exterior is from the four corners of the property. On the interior, photographing each room even if empty, is a good way to document property condition. If installing a lockbox with a lock change, the AFTER photo should be of the new lock and lock box.
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Lock Changes BEFORE photo showing old mechanism in place. DURING photo showing old mechanism removed AFTER photo showing new mechanism installed.
Of particular note: If a new lock is to be installed, do not re-key the mechanism unless the guidelines are specific for this type of work in your area. Photo of coverplate installed over deadbolt hole. It is never acceptable to put a sticker over the hole that is left there. Please refer to Memo 1116 Securing Requirements for more information. On FHA properties, the deadbolt will need to be disassembled. Steps to follow:
1 - Remove both screws on the deadbolt from the inside. This will remove both the front plate and back plate (knob side). 2 - Remove both screws on the side of the door - where the strike plate contacts the door. 3 - Remove the pins of the locking mechanism. (photo shown below) 4 - Replace the front plate and the back plate by returning them to there proper sides and lining up the screw holes.
As with any type of work being completed, the following photos must be provided: Before - showing working deadbolt During - showing removal of pins After - showing deadbolt in place and unlocked
Follow work order instruction for required lock codes as well as Investor Guidelines. Ask your regional coordinator to send confirmation to you via email as follow up of the correct instructions. Winterizations The following photos are needed for each winterization: Hot water tank draining - with Safeguard sticker in place; Water meter disconnected; Antifreeze in sinks, toilets & traps;
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Any visible freeze damage; Sump pump if applicable; Photo of blowing the lines which must include air compressor & valve/lines hooked up & being blown. Pressure Test photos documenting that the air compressor is connected to the lines with the gauge visible (either holding or not holding pressure). If an additional unit or extra zones are winterized, additional photos are needed to support these charges. Photos to support any visible freeze damage if found. Radiant winterization requires photo of boiler, RPZ valve and expansion tank if accessible. Steam winterizations require photos of the boiler All photos of items winterized must show SPI winterization tags in place on all fixtures. Boarding BEFORE,and AFTER photos of each window or door unless you are boarding the entire property. In that case, step back and take a BEFORE photo of the whole front of the house, and then an AFTER photo showing the front of the house boarded. Then do that same on the back and sides of the house. We do not need a close up before and after photos of every window on complete board ups. Screening Follow the above guidelines for screening and meshing also. Broken Windows / Replacing Glass It is very difficult to determine a BEFORE/AFTER of the window unless you do the following: BEFORE photo- Please put a "rag" or hand in the broken window. AFTER photo- Photo should show the window glass with a piece of masking tape or something on it to show that the glass was replaced. Slidebolts (1) BEFORE and (1) AFTER Grass Cuts 4 photos required (1) BEFORE and (1) AFTER of front yard and (1) BEFORE and AFTER of rear yard from same angle. Photos of BEFORE and AFTER should show the same area and be from the same angle. All AFTER photos should show the clippings raked up and removed. To support an oversize lot charge, more photos may be required- but try to minimize the number of photos by stepping back to get more of the lot in the photo. If grass does not need cutting due to limited growth, we still require photos showing the limited growth but we will only need 2 photos maximum, 1 of the front of the yard and 1 of the rear yard. If the grass does not need cutting due to limited growth, we still require photos showing the limited growth but we will only need 2 photos maximum, 1 of the front yard and 1 of the rear yard. If the grass cannot be cut because the property is
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occupied or is being maintained by another party, we still need photos of the front of the house showing the address. We will not be able to pay you for a grass cut performed if any of the photos show that the ground is covered in snow. If you are bidding the grass cut, your photos must support the bid. Hedge Trim (1) BEFORE and (1) AFTER showing the clippings removed. Debris Take BEFORE photos of debris at the property (minimize amount of photos taken as much as possible) show entire room with debris, not just small areas of the room. Take photos of debris AFTER removal to show debris has been cleared. Photos should be of same area and angle as BEFORE photos. Final photo should be of contractor's full truckload or full dumpster load. If bidding any type of debris, the bid must include quantity, price per unit, bid amount and description of the debris. For personal property: must also include approximate value and bid to remove, store and dispose. If we do not clear in the area- it is not necessary to take photos. If the debris can cause a citation or you are trying to show personal property, (to support your recommending an eviction of personals) take photos to support.
If you encounter pets or other domestic animals either in the house or on the property, immediately call Customer Service, ext 2158. All Safeguard Customer Service representatives are trained on handling of animals. When you call, please provide the local contact information for the respective local Animal Control Board or similar. Bids Photos must be submitted for all bids to clear over HUD allowables. Photos must justify any bid provided. Photos are to be submitted immediately as they are to accompany the bid to the client.
Damages If there is any kind of damage that should be claimed on an insurance claim (water, roof leak, fire, freeze, vandalism etc.) we need photo documentation to support the claim. For example, if we are going to give an eyeball estimate of $15,000 in vandalism; (1) Photo is not sufficient to support an estimate of this amount. However, it is unlikely 50 photos are required either. Use good judgment. If damages are present, photos must be taken to support the present condition of the property. Evictions (in addition to the above requirements): A photo of personal property moved to the street/curb is required.
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A photo of the eviction crew and moving van in front of the property is needed. This photo must indicate the number of crew and the size of the truck (whether it is a certified moving company or a moving crew mandated by the sheriff.) A photo of the filled moving van is required. A photo of the sheriff or sheriff's vehicle is required. If debris is removed as part of the eviction, before and after photos of the debris are required. (Please make sure debris photos (BEFORE and AFTER) are from the same angle. Photos for any maintenance work performed as specified above. Photos are required to support bids for debris over the HUD allowable. Please use good judgment when taking photos.
Occupied Properties, Service Calls, Trip Charges We require (1) photo of the front of the property showing its address to show that SPI was at the correct property.
When to Call Safeguard

As a standard rule when completing work orders, follow standard HUD or VA guidelines. Instructions for conventional loans will be noted on the work order. A situation may occur at a property that requires additional instructions from the mortgage company. The following situations require an immediate call to our office: The property is found to be for sale (unless the work order specifies otherwise). Please obtain the name and phone number of the Realtor. Safeguard requires the following information that will be forwarded to the client immediately. The client will then determine if we should secure the property. Occupancy Status Advise if there is a lock box. Name and phone number of the Realtor Advise if utilities are on at the property. Advise if there is a secondary door that can be locked. You have a problem at the property which keeps you from completing your work or if a problem is found which is causing additional damages. Anytime you have a question/problem with an order (incorrect address etc.) or there is an emergency that requires immediate attention. You are unsure of the occupancy status. If unsure if property is occupied or vacant, do not proceed with any work. Call P&P Customer Service for further instructions. Anytime there is a potential city citation.
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SE CT IO N 3: Property Pr e ser va t io n De pa r t men t
General Overview You are required to follow all specified guidelines. Enclosed in your HUD manual are the securing specifications for each region. These are to be followed "to the letter" in all cases. FHA and VA will disallow payment to our clients if securing and maintenance is not performed to specifications. You will be charged back for any disallowance issued due to your negligence in performing per specifications. It is the contractors responsibility to see that all specifications are followed per specific Investor and Client guidelines. Professional Conduct As an independent contractor performing property preservation work for Safeguard, your actions and conduct reflect on Safeguard as well as the mortgage company. It is imperative that each contractor acts in a professional manner. Whenever contact is made with anyone while completing a work order, all behavior should be professional. This includes, but is not limited to, using appropriate language and mannerisms. Professionalism should also be practiced when contact is made with all Safeguard office personnel. Media Procedure From time to time, contractors working on behalf of Safeguard Properties may receive inquiries from the news media or encounter media activity on a property where you are working on behalf of Safeguard. In the event of any media inquiry or activity, it is important that you contact your vendor management representative immediately and provide the name, contact information and the nature of the inquiry. Vendor management will refer the call to Safeguards director of public relations for follow up. Contractors are not authorized to speak to the media regarding properties managed by Safeguard, or to take a member of the media onto properties managed by Safeguard. From time to time, contractors may be asked to accompany Safeguard representatives on site visits to properties with a member of the media. In these circumstances, contractors will receive a briefing in advance by Safeguards director of public relations director to assure that all parties respect privacy and confidentiality requirements. Contractor Memos Safeguard routinely sends out contractor communications in the form of memos. These can highlight changes to Safeguard, Client or Investor procedures in addition to general reminders regarding work performance. Please click here to view current Safeguard Memos. Receiving Work Orders Safeguard must be advised immediately if work cannot be completed by the due date. Work orders issued will be forwarded by e-mail on a daily basis and placed on the vendor web. Work is to be completed by the due date indicated on the work order. If it is not possible to complete the work order within the allotted time frame - you must contact your Regional Coordinator.
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Updating Work Orders - Vendor web All contractors must update, invoice and send photos to SPI via the vendor web. To get started using this, please follow the steps below: Contact your recruiter to obtain a password. The Vendor Web Support Team will create a password for you and this will be emailed to you along with the instructions on how to get started. The Vendor Web Users Manual should be used to answer any questions about the application https://extranet.safeguardproperties.com/vendorweb/UserFiles/File/Vendor_Web_Users_Ma nual_20080813.pdf) A short recorded training session is available by clicking here (https://admin.na3.acrobat.com/_a716554048/p42699425/) If you have any questions regarding the vendor web, you can contact our IT department at Ext 3999.
Performance Percentage Value On Time Percentage and JAFFA Score Combined Jaffas - What are they and why must I submit all work orders on the vendor web that way? If you send in all your order information (update, photos, and invoice) at the same time (within 24-hour of order completion) and your information is complete, we will process your invoice for payment within 2 days of your submission. This will accelerate your payment cycle by approximately 2 to 3 weeks over the previous manner that required our staff to revisit your invoicing weeks after you had submitted your update. Jaffa Batch processing allows Safeguard's staff to perform the following tasks during the initial review of your update: Insure that all of the required information has been received Review photo documentation of the completed work Review bids submitted and photos justifying the bid Review of contractor's invoice and approval for payment
Clearly, it is to your advantage to submit your information via Jaffa Batches. We will be monitoring your percentage of Jaffa Batch submissions and are advising you now that noncompliance will affect your order volume. Currently 100% of our contractors and inspectors are communicating with us through the Vendor website and INSPI2 programs. Today's available and affordable technology gives us the opportunity to make our business a more efficient and reliable service for you and our clients. On Time Percentage is calculated weekly along with the JAFFA percentage.
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Cancellations Each night, SPI sends out a list of cancellations that our clients have forwarded to us. Upon receipt of this list, please remove the cancelled requests from your next day routing. If you have completed the work order prior to our cancellation, you must forward the completed update to our office via the vendor web within 24 hours from receiving the cancellation in order to receive payment. Trip Charges One photo of the front of the property is required for all maintenance orders. When a trip is made to a property and work that is ordered cannot be completed, a contractor may submit an invoice for a trip charge. Each contractor has a set trip charge price that is established in the recruiting process. Each trip charge will be less the appropriate discount. Every effort should be made to complete work while at the property so that trip charges can be kept to a minimum. Unforeseen circumstances will make it necessary to charge for a trip. If at anytime you are unsure as to whether or not work should be completed, please contact your regional coordinator for assistance. Trip charges are not paid for bids and estimates that are provided. Safeguard Property Stickers Photos are required of all posted stickers. Stickers are to be placed on glass surfaces. Care should be taken as to not cover any vacancy stickers. A photo MUST be taken of the posted Safeguard sticker. Do not place stickers on any wooden surface. They must be placed on glass only. Do not cover the vacancy sticker that has been left by Safeguard field inspectors. These stickers are dated and the date needs to remain visible. Property stickers can be obtained by calling the Support Services Department. NOTICE Please contact Safeguard Properties, only in case of emergency or if the property is no longer secure. For information regarding the rental/purchase of this property please contact the owner of record. Safeguard cannot supply this information to you. DO NOT contact Safeguard if you are interested in buying or renting this property. IN CASE OF EMERGENCY CALL SAFEGUARD PROPERTIES. 1-800-852-8306 When calling, please make sure that you have the correct address and zip code of this property.
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Verification of Vacancy It is vital that a property be determined vacant prior to completing any work on the property. We are to use every means available to verify the vacancy status of each property. These include, but are not limited to: Checking the utilities (are they on or off?) How was this verified? Are personals visible? Where are they located- interior, exterior? What is the quantity (cubic yards) of the personals visible? What is the estimated value of any personals visible? Verify with a neighbor, mailman, etc. Try to obtain the name/address of the neighbor that information is verified with. Direct contact with occupant. Please try to obtain the name of the occupant. Is the property being maintained? - i.e., grass 4' tall, debris in yard, etc. Is the property unsecured and wide open? Is the property being renovated? If the property is for sale, please obtain the name/number of the realtor listing the property. If you have a question on whether a property is occupied or vacant, contact your regional coordinator before entering the property.
Locating Properties On occasion, a client may provide an address that is incorrect or outdated. Unfortunately, this is a situation that is unavoidable in this industry, and the same address may appear on subsequent orders every month. It is vital that SPI is informed immediately of the problem each time. Usually our clients will have a legal description on file that will facilitate locating the property. If the property still cannot be located, even after receiving the legal description, call our office immediately so that we can inform our client. When you are having trouble locating a property, please make use of the following resources before calling our office: 1. Check with neighbors 2. Check with the post office 3. Check with the fire department 4. Check with the police department 5. Check with the tax assessors office Below is a list of websites that can be consulted when a property has a bad address or is difficult to locate. It might be possible to avoid a long drive going nowhere if these sites are consulted before starting out or used to confirm property locations. They can also be used to check the validity of the addresses to be inspected that day. www.usps.com - use Find Zip Codes to verify addresses www.melissadata.com - click Free Lookups, then Address Lookup to verify addresses
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www.mapquest.com - to find maps or get driving directions www.mapblast.com - to find maps or get driving directions www.expedia.com - click the Maps tab to get maps or driving directions www.netronline.com - click Public Records Online. Select the state from the map, choose the correct county, and select Home Page Only. Or click on Go To Data Online to get property information (legals, etc.). If there is no data online, call the correct government office using the telephone number listed on the website.
If an address looks like it might be incomplete (like one that just says "RR 22" for street address), dont hesitate to call us and ask us to confirm the address before setting out to try to find it. Similarly, if a property cannot be located, e-mail or phone us right away so we can advise the client of the need to obtain additional information. Finally, if these resources do not yield a good address or location, please be sure to let us know what resources were utilized so that there is no duplication of effort. Should a situation arise where the above methods are not helpful, please your Regional Coordinator immediately and assistance will be provided. Please be sure to keep records of any address changes, because our clients may not allow us to change the address on future orders. This information will be helpful with subsequent inspections of the same property. Driving directions to the property may be requested, so please be prepared to provide them. Tax id and parcel numbers are sometimes provided by the client. When this information is made available, it should be taken to the tax assessors office in order to find assistance locating the property.
Vacant Mobile / Manufactured Homes When performing any maintenance work order on a mobile or a manufactured home and you are reporting it vacant, the VIN # must be obtained and provided on the update via the vendor web. This information is critically important for our clients and we have committed to them that it will be provided on all vacant properties. Please see the memo below for further clarification on this issue. The necessary forms for mobile home work are in the forms section. To: All SPI Contractors From: Robert Klein Subject: Memo #1062 - Mobile Home VINs and Condition Reports It has come to our attention that many of our contractors are not aware of the full reporting requirements for Mobile Home Inspections. This memo is intended to expand upon the October 2002 Mobile Home Memo #1015. To review Memo #1015, click here: http://www.safeguardproperties.com/vendors/memo/archive/2002/october/m1015.html When a property has been identified as a mobile home and vacant, the initial secure update must provide the following information.: Year, make, model number, serial number/ vehicle identification number (VIN), and HUD registration tags Is the property permanently affixed to the foundation?
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Have the tongue, wheels, and axles been removed?
The Condition Report form attached to this e-mail will be attached to each Mobile Home orders, to assure that you provide detailed reporting on the exterior and a full walk-through (room by room) of the interior. The form requires you to assess the condition of walls, floors, ceilings, carpeting, windows, doors, light fixtures, drapes/blinds, fireplaces, appliances, and bathrooms, as well as to provide an itemized accounting of all personals by room. We are required to provide our clients with the serial or VIN number. This number is critical information for our clients to have, as this will allow our clients to review if the land and unit are titled correctly before conveying it to HUD/FNMA/FHLMC. Mobile homes will have the serial number or VIN placed at more than one location. The serial number or VIN could be inside the mobile home in a kitchen or utility cabinet, by the electrical circuit breaker box, under the tongue, on the tongue, underneath the mobile home, or on a plate near the front or back door. If the data plates that are supposed to be inside the unit have been removed, the serial number or VIN can be located on the tow bar/hitch or frame front cross member of each transportable section. Usually it is cold stamped directly onto the outside of a steel crossbeam that is part of the main undercarriage frame. If you are unable to locate a VIN for any reason, call SPI from site. Otherwise, orders that are updated without identification numbers and the attached report will remain open and incomplete. We understand that this is additional work that you must perform and appreciate your continued cooperation. For any additional clarification on this memo, please contact your regional coordinator.
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Work Order / Photo / Billing Procedures Contractor Discounts At the time a contractor is hired by Safeguard, an agreement will be made as to the percentage of discount the contractor will give Safeguard. The discount is a set percentage taken off the total charges on completed work, for example: Lock change $50.00 $12.50 Less 25% contractor discount Contractor's net pay $37.50 The amount determined for discount varies on the volume of work given to the contractor by Safeguard. It is the contractor's job to ensure all invoices are received within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame. Please follow the property preservation photo and billing procedures outlined in each work order's section found on the following pages. Please do not hesitate to contact Safeguard if you have any questions with regard to work order procedures. * All contractors should use the SPI Invoice form on the vendor web. This will eliminate missing information and the need for additional phone calls as well as increasing our ability to process contractor invoices in a timely manner . Please contact the billing department if you have any questions.
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Locks and Securing Procedures Ensuring that a property is locked and secure is a primary concern. A secure property reduces the chance of potential problems (for example vandalism or squatters). Contractors must ensure all appropriate guidelines for locks and securing are followed. Never lock a property that is listed for sale unless instructed otherwise. If you receive instructions, make sure that you obtain the complete name and contact information of the person who provided this guidance. Do not lock a property that is listed for sale (unless the work order instructs otherwise). Obtain the Realtor's name and phone number and call Safeguard so that the client can be contacted for authorization. The type of lock and the location of the door that was locked must be indicated on your update. Report any other securing of secondary doors, outbuildings etc. Report any roof tarping or reglazing of windows that is done or being bid. Make sure that all locks are operable with a Master Key before leaving the property. Follow HUD/VA Guidelines for specific instructions for your area. If a property is found unsecured and no authorization to secure has been obtained, a bid must be submitted. If a property has a lockbox that you have removed to gain access, place it inside the property in a readily visible location. For example, just inside the door or on a kitchen counter. Locks and Securing - Photos Three photos are required for lock changes (one prior to any work done, one with the old lock removed and one after installation of the new lock). If installing a lock box along with a lock change, the after photo needs to show the new lock and the new lock box. Photos are required if any additional securing was done (such as slide bolt bracing of secondary doors).
Locks and Securing - Billing Some clients require that combination lock boxes be installed (you will be notified on the work order). Contractors are to bill $20.00 (no discount) for each lock box. A working key must be placed inside all lockboxes. Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Securing of Secondary Doors: Deadbolts and Slide Bolts Follow local HUD Regulations. The securing of a secondary door is to be performed per local FHA/VA Guidelines. For Conventional Loans, a secondary door should only be secured if unable to secure with the existing lock. If a secondary door cannot be secured with the existing lock on a Conventional Loan, any method may be used to secure. Care should always be taken to avoid damage to doors, doorframes and floors. Photos: Before and after photos MUST be submitted with billing.
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Give Access Procedures The following procedures must be performed for a give access work order: You must contact the noted party within 24 hours from the receipt of the work order to schedule an appointment to inspect the property and give access. A log of all calls to the individual should be kept to document any delays in scheduling of the appointment. Any problems in contacting the adjuster/appraiser must be reported to a Safeguard representative immediately. In case of a work order to meet an insurance company's adjuster at the property you must point out all damages to the property. A key should not be given to the adjuster. It is the contractor's responsibility to make sure the property is secure after the adjuster has completed his inspection. The date and time of the completion of the give access work order must be called or emailed the same day access is given. Never give a key to an appraiser or adjuster unless otherwise instructed in writing by Safeguard Properties.
Give Access - Photos Sufficient photos should be taken to depict the damage at the property. One photo should be of the front of the home.
Give Access - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame
Boarding / Screening / Re-glazing Procedures Broken windows that allow access or elements into the property may need to be boarded, reglazed or screened. Boarding, screening or re-glazing broken windows may be needed to further protect a property from unwanted entry. Potential damage due to the elements is also a concern. All three (3) methods must be completed per appropriate HUD/VA guidelines. If the entire property has been boarded or screened, before/after photos of the entire front, entire back and both sides are needed (a total of 8 photos). Please do not take a separate photo of each single window. In addition, each boarded window must have an interior photo taken showing the bolts secured to 2x4's across the frame. If individual windows have been boarded or screened, before and after photos are needed (2 photos). In addition, each boarded window must have an interior photo taken showing the bolts secured to 2x4's across the frame. Re-glazing photos must show a hand or rag through the broken window. After photos should show the new window glass with either a taped "X" on the glass, or the glass can be marked with soap or a grease pencil.
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Boarding / Screening / Re-glazing - Billing Window sizes and locations must be indicated on billing. Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
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Winterization Procedures Damage can occur quickly during freezing temperatures. It is critical to complete winterizations immediately to prevent freeze damage. Water meters should be disconnected for all loan types. However, there are some local codes/ordinances prohibiting the tampering in any way with water meters. It is the contractors responsibility to report this information to Safeguard and not disconnect the water meter. Any fines or losses incurred as a result of a contractors failure to know the local code/ordinance. Please reference Memo 1169: Water Meter Removal regularly to view areas where water meter disconnection is prohibited. IMPORTANT NOTE: ALL INFORMATION AND MATERIAL CONTAINED IN THIS DOCUMENT IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND IS BASED ON SAFEGUARD'S INTERPRETATION OF THE GUIDELINES. Winterization Definitions DRY HEAT: Forced hot air heat What to Look For: Furnace, vents/registers
Winterization Steps:
Shut off water at the curb-if not possible shut off main interior water supply and provide reason. (Flush all toilets first.) Disconnect water meter and leave inside property unless city/county requires that it be returned. Plug the disconnected feed pipe leading from the main water valve. Affix tags (with date of winterization; name, address and phone # of firm that performed work) to all items winterized. Properties with wells must be drained. Drain Hot Water Heater and all domestic water plumbing. All faucets/valves must be opened, drained, and then closed. Use air pressure to clear the system Perform pressure test on system according to Memo 1218: Winterization Requirements Pressure Testing Clean toilets and put anti-freeze in all toilets and traps (sinks, bathtubs, etc.).
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STEAM HEAT: Steam running through system What to Look For: Steam boiler, radiators
Complete all steps listed above for a Dry system. Determine if the system is operable and Perform pressure test on system according to Memo 1218: Winterization Requirements Pressure Testing If there are any leaks. Report this information. Drain the boiler. All radiator vents are to be opened in the process and bleeder pins must not be removed from the radiators.
RADIANT HEAT: Hot water running thru entire system What to Look For: Hot water boiler, expansion tank, radiators or (copper) tubing in floor, walls, and/or ceilings. May also be referred to as a "wet system" or "hot water baseboard heat."
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Two radiant heat systems with differing placement of expansion tank
Expansion Tank
Complete all steps listed above for a Dry system Drain the boiler and all heating loops. Repair, replace, or install (only if required by local code/ordinance) a Reduced Pressure Zone (RPZ) valve. Perform pressure test on system according to Memo 1218: Winterization Requirements Pressure Testing For FHA properties only, fill heating loops and boiler with antifreeze
Winterization - Photos The following photos are needed for each winterization: Hot water tank draining - with Safeguard sticker in place; Before/After water meter disconnected; Before/During/After of antifreeze being poured into all sinks, toilets & traps; Any visible freeze damage; Sump pump if applicable; Photo of blowing the lines which must include air compressor & valve/lines hooked up & being blown. Pressure Test photos documenting that the air compressor is connected to the lines with the gauge visible (either holding or not holding pressure). If an additional unit or extra zones are winterized, additional photos are needed to support these charges. Photos to support any visible freeze damage if found. Radiant winterization requires photo of boiler, RPZ valve and expansion tank if accessible. Steam winterizations require photos of the boiler All photos of items winterized must show SPI winterization tags in place on all fixtures.
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Winterization - Billing An explanation of the type of system that was winterized. (Dry, steam or radiant). If a full winterization could not be completed, an explanation must be indicated on the update and billing. Any problems with winterization must also be indicated on the update and billing. Contractor invoice/photos must be placed on the vendor web within 24 hours of completion of the work order.
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Yard Maintenance Procedures All contractors will perform grass cuts per instructions as ordered. Procedures pertaining to maintaining grass cuts on a regular basis are as follows: It is the contractor's responsibility to schedule grass cuts for properties on their grass cut list. An initial grass cut work order will be emailed to you. The work order will state to "ADD TO YOUR GRASS CUT LIST." No further grass cut orders will be sent to you on that particular work order number. It is up to the contractor to schedule the completion of the next grass cut (based on guidelines per loan type). Your grass cut list can be viewed on the vendor web. Follow guidelines for removing from grass cut list at end of season. If a grass cut needs to be bid, photos of the lot, size of the lot and height of the grass must accompany your bid (include any additional information as needed to justify the bid). An "OPEN GRASS CUT LIST" will be emailed weekly. This list serves as a reminder showing which properties should be maintained on a regular basis. The list also shows the due date the next grass cut is due. If the due dates shown are incorrect, please contact our open order department so that we can maintain accurate records. Cancellations during grass cut season will be emailed on an individual basis. If the canceled property continues to show up on your open grass cut list, please advise Safeguard so that our records can be corrected. Re-cut bids must be submitted with initial cut bids. An update must be submitted for all grass cuts both initial and recuts via the vendor web. The lot size must be included for each work order number. . See forms section for Sample of "Grass Cut Order/Update Form" Contractors must note if the property is secure or not. Contractors must report if the property is not in Convey Condition. Contractors must state the reason why and submit a bid to put the property in Convey Condition. When bidding the initial cut due to an oversized lot, a re-cut bid must also be submitted at the same time, otherwise it will be assumed that a re-cut can be completed for the normal re-cut price. Before and after photos must be submitted with each grass cut.
To facilitate accurate and timely reporting of convey condition , we are instituting a requirement that each FHA post-sale grass cut order include a property condition check and a statement advising whether the property is in convey condition. The convey condition and property condition status must be reported on all grass cut updates. If the property is not in convey condition, you must state why and submit bids to put property in convey condition. If you have any questions regarding this or any other new guidelines issue, please contact Customer Service or your Regional Coordinator.
Grass Cut - Photos Before and after photos MUST be submitted for all grass cuts. Photos must be shot on the same
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angles showing the exact same area. Four photos should be submitted per cut (front of property: one before and one after/rear of property: one before and one after). Additional photos may be taken to justify an oversized lot. Improper photo documentation may risk the chance of nonpayment. All grass clippings removed from the yard and paved areas. Hedge trimming requires two photos - one before and one after (with the clippings removed). All grass cuts bids must include photo's to support and justify bid.
Grass Cut - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
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Snow Removal Procedures Snow removal is to be completed per FHA/VA Regulations. For Conventional Loans, follow instructions on work order. Snow Removal - Photos Photos: Before and after photos must be submitted. Snow Removal - Billing Contractor invoices/photos must be must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the timeframe.
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Debris Removal Procedures The removal guidelines for debris, health hazards, and personal property will vary by loan type and region. We understand that contractors may find that they have some difficulty determining whether debris items at a property should be reported as interior or exterior debris. In an effort to eliminate some of the confusion on this topic, we offer the following clarification regarding definitions of exterior and interior debris. Please review these definitions and ensure that your updates and removal of debris are consistent with them. Interior Debris - Any debris item that is in the main building on the property or in a secure outbuilding (even if the outbuilding is secured with existing locks) is considered interior debris. Exterior Debris - Any debris item that is outside (in the yard, on a porch or deck that is not enclosed, etc.) or in an unsecure outbuilding (missing doors/windows, missing locks preventing doors from being secured) that does not provide direct access to the main building, that can be seen from the street, or that creates the possibility of a citation is considered exterior debris. Categorizing debris according to these definitions will reduce the number of disputed reports, mortgagor complaints, and return trips. If you have any questions about these definitions, please contact your Regional Coordinator. Personal property must never be removed prior to conveyance. When bidding or removing personal property you must provide a list of items and their approximate value. Follow HUD Guidelines for removal of Health Hazards & Debris, unless instructed otherwise on work order. Never remove interior debris pre sale on FHA loan type. Properties are to be put into Broom Swept condition Post Sale. For CV, VA, Fannie Mae, Freddie Mac and other loan types, debris is not to be removed pre or post sale. Debris is removed according to the cubic yard which measures 3'x'3x3'. If you cannot remove debris for the allowable, you must submit a bid based on the cubic yards. A dump receipt is required for all debris removed whether per bid or not. It must include the following: Date of dumping Property address from which debris was removed The number of cubic yards or other applicable units of measure such as cans, gallons, each, etc. A description of the debris dumped The means of disposal. Picked up by disposal Company name, address, and phone number of facility used Dumped at facility- name, address and phone number of facility used
A bid to remove and store personals must include the disposal fee. We will remove health hazards presale only if they pose a threat of infestation. Take before photos of debris at the property (minimize amount of photos taken as much as possible - show entire room with debris not just areas). Take photos of debris after removal to show debris has been cleared. Take photos of the area
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where the debris was removed. An additional photo showing contractor's full truckload or full dumpster load can be submitted If bidding any type of debris, the bid must be provided in cyds including a description of debris. For personal property it must also include approximate value. Photos must be submitted for all bids to clear over HUD allowable. Photos must justify the bid and are to be submitted immediately so it can be provided with the bid to the client. Call your Regional Coordinator if you have any questions regarding debris, personal property or health hazard removal.
Debris Removal - Billing Contractor invoice/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
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Damages Procedures One of the most common areas that require detailed reporting is property damage. Many of the estimates submitted to Safeguard are used by the mortgage company for filing of insurance claims for vandalism, storm damages, or structural damages. Properties may also be repaired per contractor estimates in order to put the property into convey condition. HUD requires clients to repair damages that the mortgage company is responsible for (by not securing a property, by not winterizing properly, by not repairing a roof which continues to cause damages, etc.) Estimates need to be broken down into the following causes: Vandalism, freeze, structural, wind, roof leaks, water, fire/smoke, mortgagor neglect. In reporting damage, it is essential to state whether the damage is mortgagor (home owner) or mortgagee (our client) neglect. You will always be required to provide an "eyeball estimate" of the amount of damage and the source of the damage such as "active water leak in 2nd floor bedroom." When filing a property damage claim, our clients must file the claim consistent with the terms and conditions of the insurance policy in force. Most industry policies require the claimant to identify the cause of the damage claimed for coverage under the policy. Our clients therefore need us to provide them with thorough updates regarding the cause of any property damage we report. If all required information is not supplied on your initial update and we have to follow-up with you to obtain information, the filing of the insurance claim is delayed for at least that follow-up time. Such delays can ultimately have a negative effect on the client's recovery for the loss. Your cooperation in reporting property damage as discussed below will reduce the amount of time we spend tracking down important information and help our clients to timely address important property issues. Please review the following list of items and be sure that all relevant points are addressed in any update where you report property damage. IMPORTANT: In all cases where a property has sustained damage, we need a date of loss (the date of the fire, water damage, flood, or vandalism occurred, if available) or a date of discovery of damage so that our client can promptly file an insurance claim. Water Damage Keep in mind that when a claim for water damage is filed with the insurance carrier, the carrier's first question is going to be, "What caused the water damage?" Your report must include your hypothesis of how the damage occurred (e.g. broken pipe(s), roof leak, sump pump back-up, toilet overflow, etc.). The carrier's next question will be, "What is damaged (floor, ceiling, carpet, cabinets, etc.)?" Please be sure that you completely and accurately report all damage in order to help our clients expedite filing their insurance claims. When the insurance carrier sends an adjuster to assess the damage, our comprehensive reports will help the adjuster make a timely and effective assessment of damage. Flood Damage Do not report flood damage when you mean water damage. While water damage will be covered under the homeowner's insurance policy, if a property reported as suffering from flood damage is not in a flood zone, there is no insurance coverage in force. It is critical that you properly evaluate damage to determine if it is attributable to actual flooding or to other sources of water damage, and that you provide an accurate description of the damage and an analysis of its cause. Vandalism Damage Most insurance carriers require our clients to file a police report when vandalism is discovered, although in some areas the police will not take a report for vandalism if no report was filed at the time the vandalism
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occurred. We rely on you to determine if the report has been filed and to obtain and forward to us a copy if a report does exist. Fire Damage It is absolutely essential that you report the date of loss and obtain and forward to us a copy of the fire report whenever you report fire damage. This information will allow the client to report the claim to the carrier and to assure the carrier that the fire report is on its way. Your comprehensive reports allow us to promptly provide our clients with all the information they need to initiate the filing of claims. Only with your ongoing cooperation can we provide our clients with the degree and quality of customer service that they have come to expect from us. If you have any questions about reporting property damage, please call the Hazard Insurance Claims Department or a Customer Service Representative, or use one of these links to send us an e-mail completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Conveyance Maintenance Procedures Safeguard does not perform field inspections for all clients, therefore it is not always known if the properties are occupied or vacant when a convey maintenance order is sent. Safeguard must notify the client immediately of the property occupancy status. If the client does not know occupancy, your work order will instruct you to call Safeguard with the occupancy status. The time frame allotted to the mortgage company from date of sale to convey date is very important. Safeguard must report the information to the client immediately. The client then uses that date to determine how many days they have in order to put the property into convey condition before they incur curtailment interest charges. If property is vacant, contractor may schedule the clear for convey to be completed as soon as possible, however, the occupancy status must be called in immediately. Convey Maintenance - Photos Please follow specific photo guidelines listed in this manual for each procedure performed. Convey Maintenance - Billing Contractor invoices/photos must be placed on the Vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Convey Condition Requirements The mortgage company must convey a property to HUD within 30 days from the foreclosure sale or the first time vacancy date if the property was still occupied after the foreclosure sale unless an extension is granted. This timeframe is relatively short when considering how many things have to happen or be checked during that time period. The minimum requirements listed below must be met for a property to be in a convey condition , Property must be undamaged by fire, earthquake, flood, tornado, boiler explosion or mortgagee neglect
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All debris must be removed from the property which includes the property be in broom swept condition (Note, Safeguard places properties into broom swept condition post sale. If any of the above listed is not completed, the property is not in convey condition. The only exception to these requirements occurs if HUD has been advised of an issue where the requirements have not been met and has agreed to accept the property as is. Safeguard also receives many bids that are considered unnecessary and do not affect placing a property in convey condition. Examples of some unnecessary bids are listed below. - Replace/install interior missing door - Replace interior broken/missing door knob - Install door stops - Remove cob webs - Install light bulbs - Install faucets/showerheads - Remove shower curtains - Clean dirty ceiling fan - Remove stickers from walls Please direct any questions regarding bids that may or may not be required to your Regional Coordinator.
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Eviction Procedures Contractor must stay on site for the entire eviction. It is the contractor's job to represent the mortgage company and ensure that the eviction is handled properly and according to the sheriff's instructions and state laws. Eviction notices will be emailed with as much advance notice as possible. The work order will contain all pertinent information including: the sheriff and attorney contact name and phone number; sheriff requirements; and request for maintenance work. You are required to call Safeguard to confirm receipt of the request and that you are able to be at the scheduled eviction. Contact Sheriff's office for local laws. FHA loans require an inspection 72 hours prior to eviction to verify occupancy. You must remain on site for the entire eviction when a certified moving company is performing the work. Evictions must be documented with the number of men and time to complete the eviction. Move out/storage of materials is to be performed at the sheriff's direction. An assessment of interior/exterior debris is needed. If debris removal is within the HUD allowable, the debris is to be removed. Safeguard is to be notified of the amount of cubic yards of debris at the property, however it is strongly recommended that a flat price bid is submitted. Bid to remove, store and / or dispose of personals. If a return trip to the property is required to remove remaining personal property from the curb, a sheriff requirement form must be signed by the sheriff. If there is a problem at time of eviction; i.e., sheriff did not show up- you must call Safeguard at site so we can notify client or attorney before you leave the site! A partial update must be called in on the day for the eviction. The update must include the following; has lock change been completed, was the Sheriff met, were personals moved to the curb or stored. If property is not in convey condition, you must provide a list of what is needed. If personals are moved to storage, you must provide inventory list, approximate value of personals, and name & address of storage facility. If additional work is done per the Sheriff, you must contact SPI from site.
All eviction updates MUST be called in the day of the eviction.
Evictions - Photos A photo of personals moved to the street/curb is required. A photo of the eviction crew and moving van in front of the property is needed. The photo must indicate the number of men and the size of the truck (whether it is a certified moving company or a moving crew mandated by the sheriff). A photograph of the filled moving van and the crew is required. A photo of remaining debris is required. Photos for any maintenance work performed are required as specified in their respective section of the manual. Photos are required to support bids for debris over the HUD allowable.
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Evictions - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. Move out of personals to curb - must be charged/billed at an hourly rate. If a sheriff has required us to return and remove debris from curb - then the debris removal from curb and subsequent disposal can be billed by cubic yard. (NAM must have this billed in man hours). If the eviction is cancelled at the site, we can only charge a maximum of 1 hour labor total The pre eviction inspection that is ordered must be done and updated to SPI on the due date or payment will not be issued for this inspection. Our clients will not pay for results received after the date the pre-inspection was completed.
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City Citations Work orders pertaining to City Citations are to be followed according to specific instructions on work order. In some cases, you will be asked to complete work necessary to satisfy a City Citation without bidding first. In other cases, you will be asked to give an estimate to satisfy a City Citation. Either way, the work order should indicate what work is needed to satisfy the City Cite and/or a copy of the actual Cite will accompany your work order. If you have any questions on the City Cite, you may call our office for instructions or it may be necessary to call the city inspector for specific instructions. Work orders for City Citations are issued on a rush basis and need to be completed by the due date. Some situations call for a meeting at the property with the city inspector. When the city issues a citation, they give the mortgage company a set amount of time to complete the work. If the city issues a fine because work was not completed on time, you will be responsible for the fine if you failed to complete the work order by the due date. If you go to a property and find a City Cite posted, forward a copy of the Cite to Safeguard with your update and include a bid to satisfy the City Cite. DO NOT remove the original posted citation or demolition orders. Always call the city inspector to say that we are working on it.
Exterminating Exterminations are performed to rid a property of roaches, fleas, rodents, etc. In most situations, it is necessary to obtain an actual bid from a licensed exterminator. Please follow the guidelines below. The following situations require a licensed exterminator; fleas, roaches, termites and rodents. If a licensed exterminator is required, you MUST submit an actual estimate from a licensed company. When extermination is completed by a licensed company, a receipt from that company is needed to prove that they performed the work. The following situations do not require a licensed exterminator and may be done by a qualified contractor: bees and flies. When billing for extermination, photo documentation is required. You can take photos showing the actual exterminator with his equipment. If using store bought chemicals, show them placed in the house and the number of cans/bait used. Extermination fee may be billed at no discount, plus trip charge. Use any allowables for this service that are provided depending on Investor.
*Please note that the trip charge must be included in the extermination bid or it will not be paid. Only the amount of the invoice will be paid. Utility Orders Utility Orders for transfer / turn on are critical to assure that: Properties convey on time (There are some states that require utilities be transferred into Mortgagee's name) Wet winterizations are completed in accordance with HUD Regulations. Properties do not freeze pending completion of winterization work. Sump pumps are operational.
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On your update, please provide the name and phone number of the utility company along with the account number that the property is registered to.
After the utility company has informed you that utilities have been transferred into Mortgagee's name and are on, it is essential you verify this by going to the property and assuring this to be the case. If property has a sump pump, please make sure that utilities are on and the sump pump is operational. Vehicle Removal Vehicles should be removed in accordance with local laws. If the cost to remove the vehicle exceeds the HUD allowable, a bid must be submitted and a reason must be provided. For example, vehicle may be on blocks with no wheels. Without a valid reason for the bid, it will be denied.. No vehicle is to be removed presale. Please provide name, address and telephone number of the establishment where the vehicle was taken.
Roof - Patch and Repair Anytime a property has a roof leak, we require a bid to patch or repair the leak as a solution to prevent further damage. Include with your bid: 1) the size of the area to be patched or tarped and 2) the type of repair and materials to be used. The area of the roof that is being addressed should be specified (i.e., entire roof, front half, back half etc.) If a roof cannot be patched or repaired within Investor allowables, it should be tarped and bids provided to patch or repair. Flat roofs should not be tarped. The tarp could act to trap the water such that without proper drainage, this procedure could result in more damage than existed before. If emergency procedures must be taken, please call our office from site for approval. If any interior water damages are found which are the result of the roof leak, an eyeball estimate of these damages are also needed.
Mold and Roof Bids Requirements Our clients and the MCM contractor requires measurements be provided when submitting a bid to remove/clean mold, tarp, patch or replace a roof. It is very important that you be specific when providing these bids. When bidding mold removal, please make sure to include the following: A description of exactly what is being completed. Are you just cleaning, applying any type of sealant (kilz), removing or replacing? The # of rooms affected and the area size. Cause of the mold and bid to correct the cause If mold is extensive and will require testing and a certified abatement contractor to remove the mold, please indicate this on your update, providing a good description of the areas affected and an eyeball estimate of the damages.
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When completing roof repair (patch) or replacement, please include the following; Area being patched, repaired or replaced (i.e. - 10'x10') and location (front half of roof etc) When repairing (patching) be specific I what will be completed. Are you installing rolled roofing, shingles, applying roof sealant or tar, etc.? When bidding to replace the roof be specific. Include the type of roof (shingle, flat, tile) the # of squares being replaced and a description of the work being performed (i.e. - are you going over the existing roof or tearing off to the sheathing and replacing?). Provide a photo of the roof.
We can eliminate unnecessary calls and trips to the property if this information is provided when bids are submitted. If any of the information above is not included in your update, the order will be left open and we will be requesting the additional information from you. Photos are always required to support any work being bid or damages reported. This includes taking photos of the roof to support your bid to tarp, patch or replace.
Sump Pumps On all properties that have a sump pump present, follow order instructions to have utilities turned on in clients name. Tax id information is provided on all initial secure orders for this reason. Please note that on FHA loans there is a $300 allowable to replace an inoperable sump pump without providing a bid. The sump pump is to be checked in order to determine it is operable. If there is standing water in the basement, advise how deep the water is and submit a bid to pump the basement. A property cannot be reported in convey condition if the sump pump is not operable and utilities are not on. Firearms and Illegal Substances If you encounter weapons/ammunition when performing work on a property, please be sure contact your local law enforcement immediately to inquire how they would like you to handle the removal of these items. The process varies depending on the jurisdiction in which the property is located. Some areas require these items be removed by the authorities, other areas require we report the items to the client before storing them so there is record. Finally, other areas advise us to leave them in the home and we will in turn report the items to the client as personals. In all scenarios, it is required to report the contact name and phone number at the police department and to document their conversation with the authorities under the comments section. Upon arriving at a property should you encounter law enforcement officials, reasonably cooperate with their requests and contact your Regional Coordinator for further instruction.
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Legal Complaints Occasionally complaints may be received from mortgagors or neighbors of properties. Safeguard maintains a neutral position by acting as an intermediary. It makes no judgments, gives opinions, or makes assumptions about any complaints received until a full investigation has been conducted. It is important that contractors respond to the complaint within 24 hours to allow Safeguard to provide updates to clients and complainants in a timely manner. The questions need to be answered as accurately and completely as possible and any additional comments can be added for clarification and explanation. The Legal Department would greatly appreciate contractors written update to be sent via email and asks that contractors refrain from placing telephone calls or faxing updates to reduce delays and interruptions. If a contractor fails to reply to the request for information within the allotted time, checks for that week may be held until the information is received. Any information contractors provide will be reviewed as part of Safeguards standard investigation of each and every claim that is made by a mortgagor, a client, or the local authorities. In the event that Safeguard is contacted by a representative of the local authorities, we may provide the contractors contact information to be contacted directly. Once the write up is received, the order will be placed on hold until the Legal Department determines that an ample amount of time has passed with no activity. The vendor website may show that the order is listed under "invoice requested." Please ignore this, as no additional information is needed unless requested directly by the Legal Department. There may be times when a contractor encounters a mortgagor , family member or visitor of the mortgagor, or a neighbor while at a property. It is imperative that any and all interactions with a mortgagor, neighbor or any other person be relayed immediately via the contactor web. Interaction with anyone is negative , threatening or confrontational should be communicated by phone directly to the Regional Coordinator for immediate handling. Contractor shall always notify Safeguard of any damages done to the subject property, or to the neighbors or any other adjacent property, when performing work. Communication of this information should NEVER come first from the client via a complaint. By hearing about it from the contractor first, Safeguard is able to proactively address the situation and resolve it to everyone's satisfaction.
Utilizing Subcontractors Safeguard sometimes receives complaint calls from our vendors subcontractors alleging they have not been paid for work performed. Anytime Independent Vendors engaged by Safeguard Properties to perform work orders choose to utilize subcontractors to complete that work, it is imperative that they be prepared to resolve any payment disputes that may arise. Remember, the relationship with your subcontractors is your relationship and is independent of your relationship with Safeguard. Safeguard expects you to resolve any such disputes with involving Safeguard In an effort to get paid for their services, these vendors may threaten to place liens on properties. Liening a
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property not only impacts our clients negatively but also any potential sale of the property thereby affecting the potential buyer of the home. Should a lien threat be received, Safeguard vendors will be contacted by a member of the Legal or Vendor Management Department to: 1. Confirm the relationship of the complainant to Safeguard's vendor 2. Obtain any proof of payment to the complainant 3. If proof of payment is unavailable, Safeguard's vendor will be required to issue payment to the complainant and provide proof to Safeguard. Should Safeguard's vendor refuse, funds could be held to pay the complainant directly.
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Open Order / Incomplete Order Reports Open order and incomplete order reports will be emailed to each contractor every week. If an inquiry is emailed to you, it means that Safeguard does not have all the information needed to close out an order. Please check to ensure your updates are complete and accurate the first time to avoid unnecessary delays. You will receive reports from Safeguard to assist you. Responses to inquiries are needed in a timely manner. A work order will not be closed until Safeguard has all the required information to forward to our clients. You will receive an Open Order Report once a week. The Open Order report contains a list of work orders for which Safeguard has not yet received an update. This report needs to be reviewed carefully. It is important that work is completed on time. After reviewing your open order report, forward completions to Safeguard immediately. If there is any incorrect data contact your Regional Coordinator so that it can be corrected. Most common reasons that an order will remain open: Dump receipt information not received Bid for roof work but no "eyeball estimate" received for water damages Bid for mold damage, but no "eyeball estimate" received for water damages Photos supporting bid or second bid not received Convey condition status not reported on convey orders. Insufficient detail on update (i.e. Debris bid description, but no qty. or not noted as interior or exterior) Property reported unsecure but no reason given or bid to secure received No mention of utilities on if sump pump operational No mention of water off at the curb for winterization orders Lot size and grass height not mentioned on grass cut. You will receive an Incomplete Order Report once a week. The Incomplete Report is a listing of all completed work orders for which Safeguard has not received an invoice or photos. We cannot bill our client without your invoice or photos. Should our review of your invoice/photos reveal any deficiency that will affect the billing, we will notify you of the missing items. Once we have notified you of the deficiency, it is your responsibility to remedy the problem the same day. Each contractor is allowed a maximum number of open orders, therefore it is important to complete work as quickly as possible. Open and incomplete orders are viewable on the Web at anytime. Property Preservation C h a r g e - B a c k Policy When errors are made on the contractor's part or the contractor fails to follow applicable guidelines, it may be necessary to charge the work back to the contractor. Contractors are to work diligently so that charge backs are kept to a minimum. Notification of each charge back will be made to the contractor along with an explanation as to the reason for the charge back. If you have any questions regarding a charge back, please contact the office. If work is not completed on time, causing the mortgage company to be late in conveyance, you may be held responsible for reimbursement of debenture interest costs to mortgage company. If a contractor performs/fails to perform in any way which causes Safeguard additional charges or the inability to invoice the client, you agree that Safeguard may issue a charge back to your account. The
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amount charged back will be: The amount that would have been invoiced to the client. Any additional cost which Safeguard incurs to remedy the problem. Client "A" authorizes a grass cut for SPI contract amount of $50.00. Contractor "ABC" fails to perform the grass cut in a timely manner, causing the city to cite a violation on the property for $200.00. Contractor "DEF" performs (overgrown) grass cut to remove the violation at a cost of $100.00.
The following scenario is only an example of how Safeguard's charge-back policy is used:
The following is an example of the message a contractor should receive if a charge-back is to be applied: This letter is to inform you that a chargeback has been issued on this file. You were previously advised that a chargeback may become necessary and additional information was requested of you but you did not provide the necessary information. Safeguard does not want to chargeback any work to its contractors. However, as you are aware, all work must be performed in accordance Investor/Insurer guidelines, the instructions stated on the work order, and MUST include the before and after photos of work performed. Safeguard cannot get paid by its clients if the work is not performed according to guidelines or the photos are not provided. Safeguard strongly encourages you to contact your regional coordinator to review how work must be completed and the photo documentation that must be provided. Safeguard offers this service to its contractors in an effort to help them avoid having chargebacks issued. You can contact your regional coordinator at (800) 852-8306. The charge-back on this file was issued because: CHARGEBACK REASONS ARE LISTED HERE: The contractor will be charged-back in the following manner: $ 50.00 The amount that Safeguard could not invoice the client. $200.00 The amount Safeguard incurred due to the city violation. $ 50.00 The cost Safeguard incurred to have "DEF" perform the grass cut. $300.00 Total amount charged-back to contractor. Thank you for your attention to this matter. Safeguard Property Preservation Payment Policy Invoices placed on the web at the same time the work is updated and photos are placed on the web. Failure to comply will result in non-payment for work performed. Safeguard's Property Preservation payment policy is as follows:
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All photos/invoices must be placed on the vendor web within 24 hours of completion of the work order. Failure to comply with this policy will result in the forfeiture of payment for work completed. Safeguard will forward payment for work completed 30 days after processing receipt of contractor's photos/invoice. Inquiries regarding payment discrepancies or inquiries regarding non-payment should be made after the 30 day payment policy has lapsed BUT no later than 60 days after you have invoiced Safeguard. If you have any questions, please contact the Accounting Department. Payment inquiries made after 60 days will not be researched. Payment for billed work orders may take up to 45 days for payment to be processed
SPI reserves the right to return invoices unpaid when not received within the time frame.
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Estimates and Bids Estimates and Bidding - Photos Photos are needed for all estimates to repair. Please take representative photos of all damages (for example , we do not need a separate photo for each damaged socket or whole in the wall - one or two general room photos should be sufficient). Estimates and Bidding - Billing Safeguard does not pay trip charges for second bids or estimate orders only. Contractor invoice/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame. Excessive Bids Safeguard Properties relies on it's vendors to submit accurate and competitive bids. Safeguard Properties' reputation and creditability are at stake every time we submit a bid to our clients. Safeguard Properties cannot be successful if its vendors are submitting excessive or inaccurate bids. Please Note: If your bid is approved and the work completed, you must submit before, during and after photographs. If the photographs submitted do not justify the work performed, Safeguard Properties reserves the right to require the vendor to take additional photographs or adjust the invoice based on the photo documentation provided.
Adjusted Invoices
While we always want to pay our contractors in full for the work they have performed, our experience tells us that there are times when a contractor will not be paid in full because we have not received sufficient documentation/photos from them to invoice our client on a timely basis. The most common reasons invoices are cut are: Photos show work not performed per investor specifications. We have a before photo of lock change. We are missing the after photo of lock change. We have after photo of lock change. We are missing before photo of lock change. Photos do not support quantity of debris or health hazards removed. Update to client may be for 30 cubic yards of debris. Photos only show 17 cubic yards. (Remember, a cubic yard is 3'x3'x3'.A cubic yard is not the size of a garbage bag. Storage receipt for personals not received. Extermination receipt not received. Receipts are required on work completed by third parties and will not be paid unless they are available. Boarding photos show work not done to HUD specifications. Invoice/photos not received within 24 hours from work completed date.
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SE CT IO N 4 Haza rd Insura nc e Cla i ms Departme nt
General Overview Safeguard has an experienced staff of claims specialists that have been hired to handle the Hazard Claims needs of our clients. This department is responsible for the filing, monitoring and settlement of insurance claims on behalf of its client insured. This includes having the contractor give the scope/estimate of damages to the appraiser and/or adjustors. Safeguard's goal is to receive requests from our client to repair the properties. To be effective, Safeguard must have qualified contractors available who understand local HUD requirements and that can complete the repairs to meet these requirements. If you are unable to perform estimate or repair work orders, please advise Safeguard immediately. If a work order cannot be completed in the allotted time frame - you must advise Safeguard immediately. Work orders issued will be forwarded by email on a daily basis. Work is to be completed by the due date indicated in the work order. If it is not possible to complete the work within the allotted time frame - you must advise the Safeguard claim representative immediately. If you experience any type of problem with any new work order (unable to read, wrong territory, order not clear, etc.) please advise the Safeguard representative immediately. Updating Procedures We must update our client by the due date on the work order. If the work order cannot be completed in time the Safeguard representative must be advised immediately on when the work order will be completed. Updates must be emailed on the day they are completed per the fax guidelines in Section 2 of this manual. Update must include the date the work was completed ( "done" is not acceptable). The completion date is important and inaccurate information can cost our clients significant out of pocket expenses that must be reimbursed by Safeguard.
Work Order / Photo / Billing Procedures Please follow the hazard claims photo and billing procedures outlined in each work order's section found on the following pages. Please do not hesitate to contact Safeguard if you have any questions with regard to work order procedure Insurance Inspection Procedures
The insurance inspection is designed to notify the client of the overall condition of the property and to document any damages sustained to that property. It is imperative that the information provided by the contractor is detailed with photos to support all damage being reported. The decision to file a claim for damages sustained to the property will be based on the contractors report of damages and photos submitted. Work orders will be specific regarding what it is we are looking for you to report. If anything is found beyond what has been requested we ask the additional information be included in your update. Insurance inspections are generally requested on a rush basis so it is important to include all information on your update when submitting it. Photos of all damage need to be provided, your photos are our eyes and any damage being reported must be justified. Along with photos a description of the damage, the possible cause and eyeball estimate to repair is required.
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In general, properties should be secured with HUD regulation locks to allow for access. If you cannot gain access to a property contact the Claims Department for approval to change the lock in order to gain access. You should indicate if there is a secondary door that can be used to gain access to the property and can then be locked and secured when leaving.
Itemized Estimates Procedures Itemized estimates are handled by Regional Estimators. Please review the current estimating regional map on the home page of the vendor web for your area. Many of the estimates submitted to Safeguard are used by the mortgage company for filing of insurance claims for vandalism, storm damages, or structural damages. Properties may also be repaired per contractor estimates in order to put the property into convey condition. Property damages are to be broken down by cause. HUD is now requiring clients to repair damages which HUD feels that the mortgage company is responsible for (by not securing a property, by not winterizing properly, by not repairing a roof which continues to cause damages, etc.). Estimates need to be broken down into the following causes: Vandalism damages Freeze damages Structural damages Wind damage Roof leaks Water damages Fire/smoke damages Damages due to neglect
Estimates need to be completed as accurately as possible - if the client approves your estimate you will be expected to repair the property for that price. Estimates must be itemized and include dimensions, room names and the cause of the damage. All itemized estimates must be completed on word or excel and emailed directly to your Regional Estimator or the individual requesting the bid. Contractors should scan their bid on the web as an update. Estimates for convey condition are intended to be bottom-line estimates to convey the property only. These estimates are not to include repairs to "wear and tear" or neglect.
Insurance Inspection - Photos Sufficient photos should be taken to depict the damage at the property. One photo should be of the front of the home as well as the rear and both sides. If the lock change is approved, a photo needs to be taken showing the original lock and the new lock being installed.
Insurance Inspection - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order.
SPI reserves the right to return invoices unpaid when not received within the time frame.
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Give Access Procedures

The following procedures must be completed within 24 hours of receiving a work order to provide access to an insurance adjuster Make contact with the adjuster to schedule a time to meet at the property. If a message is left, keep a log to document your attempts to contact the adjuster. Access is to be given within 72 hours of receiving the work order. Once an appointment has been scheduled contact the Safeguard representative that sent you the work order to advise on the date and time of the inspection. Final update and invoice must be posted within 24 hours of the give access being completed. Include one photo of the front of the property.
Give Access - Photos Sufficient photos should be taken to depict the damage at the property. One photo should be of the front of the home.
Give Access - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Scope Verification Procedures Our goal is to repair properties for the insurance funds available. It is vital that Safeguard has contractors that can verify the scope of the damages to a property and can then complete the repairs. The scope verification work order form is designed to be used as a fill in the blank form that can be emailed back to Safeguard as the update. This form must be completed in its entirely. You must list and bid all property preservation issues at the property (i.e. grass cut, debris, etc.) that will need to be addressed to convey the property. If the adjuster's estimate is not reflective of the claimable damages, you must provide an itemized list of the damages not addressed and the cost to repair. You may be required to meet the adjuster at the property to review the damages and negotiate the agreed price to repair. The scope verification work order also requests a bottom line bid to convey. A separate bid must be included to place the property solely in convey condition (if applicable per loan type).
Scope Verification - Photos Sufficient photos should be taken to depict the damage at the property. One photo should be of the front of the home as well as the rear and both sides.
Scope Verification - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion
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of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Miscellaneous Work Orders Many insurance carriers require that a police report, fire report or demolition and tax forms be filed with the insurance claim. A work order will be emailed to you indicating the type of report needed. Any special instructions will be clearly outlined. This work order may require you to file a report with the local law enforcement agency. The contractor should note the date and time the report is filed, the name of the agency, phone number and the report number. Any delays in completing the work order must be updated immediately.
Miscellaneous - Billing Contractor invoices/photos must be placed on the vendor web within 24 hours of completion of the work order. SPI reserves the right to return invoices unpaid when not received within the time frame.
Hazard Claims Payment Policy Requests for payment of invoices will be made within 5 business days of Safeguard's receipt of the completed work order with photos.
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SE CT IO N 5 Sa feg uar d Re pa ir s
Each repair work order must be reviewed carefully in order to determine the intent of repairs. Repairs are generally the result of work orders completed for Property Preservation and for Hazard Insurance Claims. The end result of most repairs is to put the property into convey condition, however, each repair work order must be carefully reviewed by the contractor in order to determine the intent of the repair. Receiving Repair Work Orders Additional repairs, beyond the approved scope of work, MUST be authorized by Safeguard. Repairs must be updated on a weekly basis. Each update must be received by Wednesday morning. Upon receipt of client authorization to begin property repairs, Safeguard will issue a repair work order to the bidding contractor. A work order will be emailed to the contractor which includes all pertinent information needed for successful repair completion. All new repair work orders will include the following information: (See next page for sample report) Approved estimate sum - for which repairs are to be completed. Any additional repairs CANNOT be done without prior client authorization. Information with regard to convey condition - advises if convey condition is necessary. Any known inspection information will also be included. Request for start and completion dates - dates must be called in by the contractor to Safeguard within 3 days of receipt of the work order. If not submitted within 24 hours the order may be reassigned. Draw information - the amount forwarded to contractor in order to begin repairs. Photo Information - photo policy and request for duplicate photos if the repair is the result of an insurance claim. Update Information - must be submitted (either called in or emailed) on a weekly basis. If the repairs are to be completed per the insurance scope a copy of the adjuster's estimate will be sent with the order. THE REPAIRS MUST BE DONE PER THE ADJUSTER'S ESTIMATE TO REVCEIVE FULL PAYMENT FOR THE ORDER.
The work order is generally preceded by a telephone call from a repair analyst. This repair analyst will serve as the contractor's primary contact throughout the repair process. Updating Procedures for Repairs All repairs must be updated on a (minimum) weekly basis. An update form will be emailed or emailed to each repair contractor every Monday. This repair update must be either filled out and emailed or the update may be called in. Each repair update must be submitted by Wednesday morning. The update form includes: the anticipated completion date, a request for a list of completed repairs, as well as, a request for a list of repairs scheduled for the following week. Repeated failure to submit updates in a timely manner could negatively affect your status as a repair contractor. (See sample - next page) If the weekly update form is not received, it is still the contractors responsibility to update a repair analyst on the repair progress. The contractor must notify Safeguard as soon as he/she becomes aware that the originally scheduled completion date will not be met. The adjusted completion date will need to be forwarded to the client as soon as possible.
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Written authorization is needed prior to beginning any additional repairs. Safeguard must also be updated immediately if there are any problems during the repair process. This includes but is not limited to: Any hidden damages discovered during the repair process. Any new damages discovered (such as vandalism, broken windows, etc.) Any new violations or citations posted at the property. If an inspector cites new violations while repairing the property, please request that the violation be documented in writing.
Any additional repairs which are not per the original estimate or per the adjuster's scope must be bid and then forwarded to the client for approval. Contractors must receive written authorization from Safeguard in order to be compensated for additional repairs. Any additional repairs completed without prior authorization cannot be reimbursed. Repair Photo Policy Before and after photos MUST be documented for all repairs. Photos are an important part of the repair process. Photos should be taken on a daily basis during repairs, not just once at the end of repairs (especially in high crime areas). The following guidelines should be followed for repair photos: Before and After photos are required for all repair orders to ensure proper documentation of the work being performed. During photos are also requested depending on the repair to ensure proper documentation. Example: Remove and replace roof Before photos of old roof. During photos of the roof removed and new decking/felt After photos of new shingles
The "before" photo of the item repaired is to be followed by the "after" photo of the repair. The before and after photos must be taken from the same angle and clearly show the work that was completed. All photos are forwarded to the client. Duplicate After photos are no longer required for insurance repairs. Photos are to be submitted as quickly as possible after repair completion. All repair photos/invoices MUST be received via the Vendor web. Photos will NOT be accepted via mail. If the repair photos do not adequately justify the work authorized, the contractor may be required to take additional photos before final payment is issued.
Repair Billing Procedures Contractor invoices/photos must be placed on the vendor web within 48 hours of completion of the work order. Any final inspection papers and/or copies of permits are to be forwarded with contractor billing or as soon as they are received. For all repairs in excess of $2,500.00 an inspection will be conducted by SPI to verify that the repairs are being completed. The final payment will not be issued until this inspection is completed and SPI has been advised that all work authorized has been completed.
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Repair Payment Policy Repair funds are generally sent 2nd day mail to the contractor in two installments: the first draw (1 /3) is forwarded upon repair authorization and the second draw is forwarded upon Safeguard's receipt of contractor invoice, final repair photos, and receipt of final repair inspection indicating the work has been completed. Repairs over $20,000 will be divided into three draws: 1/3 is sent via overnight mail upon repair authorization, 1/3 is sent via overnight mail upon 50% completion if needed, the final third is forwarded upon receipt of contractor invoice/photos and receipt of final repair inspection indicating the work has been completed. No draw will be issued for repairs under $2,500.00. Any repair draws under $500.00 will be sent via regular mail (unless the contractor agrees to pay overnight fees). Requests for payments on invoices will be made within 5 business days of Safeguards receipt of proper photos, invoice and final inspection of the completed work. ***** IF A CONTRACTOR FAILS TO FOLLOW ANY OF THE LISTED REPAIR PROCEDURES, SAFEGUARD PROPERTIES RESERVES THE RIGHT TO REASSIGN ANY PENDING WORK ORDERS. ANY DISPUTES REGARDING WORK PERFORMED SHALL BE BROUGHT IN THE COURTS OF CUYAHOGA COUNTY, OHIO.
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SE C T IO N 6 Ph o t o E x a mp l e s o f W o r k P e r f o r med Please use the Photo Manual to review the SPI Photo Documentation manual for acceptable photo examples of work performed. Exterior and interior property condition photos are required on all work performed.
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SE CT IO N 7 Informa t ion Se curity Awa rene s s
Training materials can be found at: http://www.safeguardproperties.com/training/infosec.html
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Safeguard Properties Property Preservation Procedures Manual

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SAFEGUARD PROPERTIES

2011 Property Preservation Procedures Manual

CUSTOMER SERVICE: BILLING QUESTIONS:

An Introduction to Safeguard Properties

Appraisal/BPO/Title Document Retrieval

Hazard Insurance Claim Recovery / Repairs

Receipt of Contractor Manual

Compliance with Laws/Guidelines

SE CT IO N 2: Saf e g u ard Pol ic i es a nd In f o

Photos Placed Directly on the Vendor web:

When to Call Safeguard

SE CT IO N 3: Property Pr e ser va t io n De pa r t men t

Have the tongue, wheels, and axles been removed?

Two radiant heat systems with differing placement of expansion tank

All eviction updates MUST be called in the day of the eviction.

SE CT IO N 4 Haza rd Insura nc e Cla i ms Departme nt

Give Access Procedures

SE CT IO N 7 Informa t ion Se curity Awa rene s s

Training materials can be found at: http://www.safeguardproperties.com/training/infosec.html

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