General info for Property Preservation
Each franchisee must be a licensed contractor in the states they preform work in. Or have a written agreement with a licensed contractor to work under their license and bond. They must have a State business license, a state industrial insurance certificate and a federal EIN number.
Mortgage companies, banks, and private and government home loan insurance companies (customer)
use several National companies to preform Property Preservation ( P&P ) work and Bank owned
(REO) Work.
P&P is pre-foreclosure work, and as the name implies we preserve the property by maintaining
the property to prevent or reverse damages that could cause the property to loose value.
REO work is after the property is bank or insurer owned.
The process begins when a borrower is approximately 90 day late on a home payment the mortgage
company will send out a order for a occupancy inspection to determine if the property is occupied, if it
is occupied they will send out inspection orders for several more months then a door hanger order will
follow, then a contact order.
If the property is vacant they will order a lock change on a secondary door so the owner may have
access or if no secondary door is available the main door.
At this time a condition report will be
preformed with supporting photos showing the condition of the property and any damages. Bids will be
placed to correct any damages.
Depending on the customers requirements there may be a order generated that a certain amount of debris
be removed at that time, but in most cases nothing is removed, just an inspection and photos showing the
condition to property. A grass cut or winterization depending on the season may be requested at this
time as well.
If the property is going to be conveyed to the Insurer of the loan (VA, FHA, HUD, FANMY, FREDY
MAC) we may receive a convey order which requires us to remove all debris and broom sweep the
property. Personal property be required to be stored on or off site for 45 days with a notice on the property telling the
borrower who to get into contact to retrieve their belongings.
Depending on the properties condition, sales history for the local area, or existing numbers of foreclosed properties in the bank, mortgage companies inventory in that area, the bank or mortgage co. may decide to convey the property to the insurer of the loan. By federal statute the bank, mortgage
company has only a certain amount of time to have the property in convey condition to be conveyed to
the insurer of the loan.
By Monthly lawn care and monthly inspections will be done to prevent code enforcement violations and show the customer the condition of the
property.
There may be some repair work that is needed before the bank, mortgage co can convey the property which you will bid on.
After a certain time period the property will go into foreclosure and the bank will own the property, if it has not
already been done the customer will order a trashout and maid service be preformed and depending on
the season either a winterization or a grass cut to prepare the property for sale. In most cases a weekly
grass cut or by weekly grass cut will be done as well as a monthly maid refresh.
A work order is sent to the National from the mortgage company or insurer, it is then sent to a
contractor who preforms the work.
The contractor is required to complete the work within a time period and supply photos documenting
all conditions and work completed before during and after. The time frame can be adjusted for weather,
or other conditions out of the contractors control. From time to time you may receive an order that the
due date is past, you will be given the standard amount of time to complete the order.
For out of area work (OOA) a trip charge of .50 cents a mile will be paid. OOA trip charges are not
paid for follow-up orders, so be sure to take and send in the required photos and documents.
On completion of the work order the contractor sends in their photos and other documents including an
invoice for work preformed to CGNAT.
They will then be loaded onto the banks, mortgage co. web site.
On the web site photos are loaded under their appropriate work heading, (front of house, side of house,
rear of house, trash out, maid service etc...) everything listed on the work order is represented on the
web site with a heading and photos showing before, during, and after, results are needed to complete the
orders without them the order can not be closed out.
.The job is not completed until all of the required photos and documentation
is submitted.
After all headers are filled with the required photos and documentation the company reviews the
invoice and compares it to the photos under the appropriate header if the photos substantiates the work
was completed correctly the company turns in the invoice to the customer and submits a request for
payment . This generates an order to be sent to the the listing agent, national's inspection team and to
the customers inspection team.
All damages, bids and adverse condition reports are sent to the customer
for review and approval, the photo requirements are the same as the work requirements.
Usually within 3 working days the listing agent reviews the property and either passes the property or
sends in a notice of deficiency along with a list of follow up work. The contractor then has 24 hrs to
correct any deficiencies or face a charge back or reassignment of the order.
Within 10 working days the national will send out an inspector to review the property, they may require
follow up as well and the contractor has 24 hrs to complete the work or face charge backs or
reassignment.
Payment for work preformed is sent out after 30 days from completion of order, remember completion
of order is only after all photos and documents required are submitted. If any follow-up orders are
issued you have 24hrs to resolve the problem or face a charge back or reassignment of the order.
After 72 hrs your time for payment goes back to 0 and until the required info or work is completed and
photos and documents are submitted.
After the first 30 day cycle is completed you will receive payment weekly for work completed 30 days
ago.
Delays in payment can occur if the follow up orders are not submitted in time as the order is not closed
until the follow up is completed. Requests for photos to substantiate work preformed can also delay
payment.
Charge backs can occur as long as the property remains unsold and can be for failure to report and
document with supporting photos damages to the property, or for work done below standard. It can also
be for penalties in not preforming a required work function such as but not limited to air fresheners or
elect cover plates not being installed.
Reassignment costs can include the rush order fees, travel time and millage for another contractor to
complete the job.
You will not be paid for any work completed on the property if the order is reassigned.
We can not stress enough the importance of completing the order on time,
submitting the required photos and documentation, and a correct invoice.
Seasonal
Seasonal work consists of Grass cuts, shrub trimming, and snow removal.
Grass season starts March 1 to November 30, in most states. The photo requirements are different then P&P or REO, there are seldom interior photo requirements.
We are required to mow up to 1 acre of grass any larger areas are to be bid. Pricing is based on sqft of mowing area, under 1500 sqft,1501sqft to20,000 sqft. 20,000 to 25.000 25,000 to I acre. You are also paid more for grass height, for every 12 in in height over more then 1/2 the yard area you are paid $20.00 up to 36 in, after 36 in you are to bid the grass cut.
Snow season starts when there is 1 in of snow. We are to clear the front sidewalk, sidewalk to front door, driveway width of one care, and path to contractor lock box
Updated 02/25/17
