Contractor Guide Module 2: Performing Work at a Property

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1 Contractor Guide Module 2: Performing Work at a Property All rights reserved. Copyright 2012 Lender Processing Services, Inc.

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3 Statement of Confidentiality The information contained in or supplied with this document is submitted solely for the purpose of evaluating the products and services of Lender Processing Services, Inc., and/or its affiliates and subsidiaries. The information contained in or supplied with this document, in its entirety, is the confidential and proprietary information of Lender Processing Services, and it may not be copied by or disclosed to any person or entity (other than to the intended recipient), without the prior written consent of Lender Processing Services. With or without Lender Processing Services prior written consent, Lender Processing Services accepts no liability whatsoever for any consequences arising from the reproduction of the information contained in or supplied with this document, or from its disclosure to any person or entity, including to the intended recipient. Lender Processing Services additionally accepts no liability for the use of the information contained in, or supplied with this document, by the intended recipient, or by any other person or entity, with or without Lender Processing Services express prior consent. The intended recipient shall not use any part of the information contained in, or supplied with this document, in any way to the competitive disadvantage of Lender Processing Services, and will take all steps designed to assure its compliance with this provision. This proposal is neither an offer nor intended by Lender Processing Services, upon acceptance by the intended recipient, or otherwise, to create a binding agreement with Lender Processing Services. Such an agreement shall be reflected only by a definitive contract, executed by both parties. Trademarks All other trademarks are the property of their owners. Company, product, and service names used by Lender Processing Services within, or supplied with this document may be trademarks or service marks of other persons or entities. Copyright Copyright 2012 Lender Processing Services, Inc. 601 Riverside Ave., Jacksonville, Florida 32204, USA All rights reserved. All rights reserved. Copyright 2012 Lender Processing Services, Inc. Page 1

4 Performing Work at a Property `Statement of Confidentiality... 1 Performing Work at a Property... 2 Overview... 8 Module Purpose... 8 Module Objectives... 8 Understanding a Work Order... 9 Work Order Types Property Preservation REO FHA Turnaround Time Photo Requirements Bid and Eyeball Estimate Requirements Requesting an Extension Valid Extension Reasons Invalid Extension Reasons Securing Lock Types General Securing Requirements Exterior Doors and Entries Sliding Glass Doors Lockboxes Multiple-Unit Properties Windows Detached Garages, Outbuildings and Exterior Crawlspace Openings Page 2

5 Automatic Garage Door Openers Photo Requirements for Securing Boarding Obtaining Approval to Board Boarding Above First Floor/Story Security Bars Small Openings Bolt Boarding (LPS FS-Preferred Boarding Method) Window Sashes Photo Requirements for Boarding Window Re-Glazing and Replacement Re-glazing Replacement Photo Requirements for Window Re-Glazing and Replacement Re-Glazing Window Replacement Pools and Hot Tubs Securing Decking Freestanding Above-Ground Pools Gates Indoor Portable Hot Tubs and Spas Pool Covering Pool Safety Covers Boarding REO Expectations Maintenance Draining and Cleaning Page 3

6 Shocking Winterizing REO Properties Photo Requirements for Pools and Hot Tubs Debris Removal Exterior Debris Interior Debris Vehicles Photo Requirements for Vehicle Removal Large Appliances Personal Property Photo Requirements for Personal Property Hazardous Materials Household Hazardous Waste (Interior/Exterior) Removing Debris and Hazardous Waste Photo Requirements for Debris and Hazardous Waste Removal Eviction Eviction Work Orders Issued Pre Eviction Eviction Final Securing Post Eviction Crew Member Identification Special Circumstances Licensed or Bonded Mover Leaving Personal Property Signed Confirmation Requirement Pets Page 4

7 Eviction Compensation and Reimbursement Property Preservation REO Photo Requirements for Eviction Compensation and Reimbursement Eviction Cancellation Provide Access Photo Requirements for Provide Access Grass Cut and Yard Maintenance Property Preservation REO Submitting Bids Reporting as Work Not Performed Trimming Shrubs and Removing Snow Pruning and Removing Trees Photo Requirements for Grass Cut Winterization Antifreeze Type Applying Winterization Sticker Dry Heat Winterization Steam (Wet) and Hot Water (Radiant) Winterizations Water Supply Public Water Supply Well Water Supply Winterizing Shared Systems Winterizing Properties with Fire Suppression Systems Property Preservation REO Performing a Winterization Check Page 5

8 De-Winterizing a Property Property Preservation REO Reporting Damages Frozen Properties Partial Winterization Reporting Guidelines Photo Requirements for Winterization Water Damage and Mold Photo Requirements for Water Damage and Mold Pumping Water Sump Pumps Portable Pumping System Hot Water Tanks Overflow Protection Dehumidifiers REO Expectations Photo Requirements for Pumping Water Roof Tarping Sealing Patching Replacing Reporting Damage Photo Requirements for Roof Safety Issues Installing Handrails/Railings Capping Electrical Outlets/Wires Page 6

9 Photo Requirements for Safety Issues General Repairs Installing Drywall/Sheetrock Painting Using a Roller Using a Sprayer Photo Requirements for General Repairs Mobile Homes Providing Cost Verification for BATF Requirements Services Requiring a Cost Estimate Services Not Requiring a Cost Estimate When Performing a Combination of Services Submitting a Cost Estimator Additional Information Appliance Installation Appendix Photo Checklist Revision Date Revision Description Approver(s) /12/2012 Initial publication. Devon Allen Page 7

10 Overview Module Purpose This module provides information on performing property preservation work assigned by LPS FS. Module Objectives Upon completing this module you will be able to: Read and understand an LPS FS work order. Understand LPS FS expectations and requirements when performing work at a property. Page 8

11 Understanding a Work Order Work orders contain information on: The property in general. Work being assigned to a contractor to complete. The most critical information on a work order includes: Reference Field Name Description A Work Order Due Date Date by which the work must be completed. B Mortgage Company Client holding the loan. Important: Client may have specific property preservation guidelines that need to be followed. Refer to the Client Specific Guidelines section of this guide. C Type Loan type (i.e., FHA, VA, Conv, Fannie Mae, Freddie Mac). Important: Investor/insurer may have specific property preservation guidelines that need to be followed. Refer to the Investor Guidelines section of this guide. D E W/O Notes (if available) Work Order Verbiage Notes from LPS FS that are applicable to the work order. Verbiage contains: Work Order Type. Notes which tell the contractor what and how items need to be completed. Important: Work order verbiage can vary on different items such as client specifics, investor requirements, etc. Local ordinances can also conflict with the verbiage on the work order. Due to potential conflicts, contractors are responsible to know local ordinances in their service areas. Important: In the event that work order verbiage or notes conflict, call the LPS FS client team from site or as soon as you notice the conflict. The appropriate LPS FS team and phone number are included in the work order. Page 9

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13 Work Order Types Property Preservation Type Initial Secure Note: Applies to all loan types, except FHA, then considered pre sale. Definition/Requirements Property Preservation: Change one lock per work order verbiage. Perform grass cut and/or winterization, depending on season. REO: Change locks per work order verbiage. Re-secure To verify if a property is secure. If the property is not secure, provide bid(s) to secure. Bid Approval To complete bid work approved by LPS FS or client. Perform work as specified on work order. Second Bid To obtain bids for requested items. It is important to provide bids for the requested items and note any additional items as suggested. Grass Cut Only applicable during grass cut season based on client and investor guidelines. Standard grass cut season is April 1 Oct. 31. Initial Grass Cut: Typically a one-time service to perform initial yard care services at a property. Re-cut: A recurring service, issued every 13 to 15 days, to perform yard care maintenance during grass cut season. Note: Verify state and investor guidelines for grass cut schedules. Winterization Only applicable during the winter season based on client and investor guidelines. Standard winterization season is Oct. 1 March 31. A one-time order to complete all applicable winterization procedures at a property. Allow Access Allowing access to an authorized third party to gain entry at a property. Page 11

14 REO Type REO Code Violation Check Request Definition/Requirements A request for a bid or approval to perform work to cure a violation. Read work order carefully as specific instructions vary. REO De-Winterization A request to perform de-winterization services based on season or at the request of the client. REO Eviction Assistance REO Initial Pool Maintenance Services required vary by client. Follow work order instructions for client specific services. Eviction typically requested in one work order. Specific information in the order advises date, time, number of crew members required and sheriff contact information. A one-time service to clean a pool to get the system started. Full inspection of the pool system and equipment is required. REO Initial Services A combination of services to clean a property and prepare for marketability. REO Monthly Pool Maintenance Services include (but not limited to) debris removal, yard care, sales clean, boarding, securing, etc. A recurring service issued weekly, bi-weekly or monthly to maintain a pool and its equipment. REO Re-Winterization A service to winterize a property after a de-winterization occurred. REO Sales Clean Refresh REO Emergency Services All services included in a standard winterization are required. Each order has specific timeframes and expectations. A bi-weekly or monthly service to perform light cleaning of a home. Includes replacement of air fresheners and light bulbs. A request to have services performed without a bid. Most often these orders require a call from site for approval. Page 12

15 FHA Type First-Time Final (Post sale) Final (Post sale) Verify CC (Conveyance Condition) Eviction Definition/Requirements Change all remaining locks. Perform grass cut and/or winterization, depending on season. Remove debris which includes interior and exterior, personals and health hazards. Note: Special circumstances for hazards in MA and CA. Complete work requested (i.e., bid approval). Provide bids to address any conveyance condition items. Report if property is already in conveyance condition. Look for items out of conveyance. Report if property is already in conveyance condition. Four separate work orders are typically placed for an eviction: Pre-eviction Eviction Final securing Post-eviction debris removal Turnaround Time There are several work order service types designed to meet clients needs. It is extremely important to pay attention to the required turnaround time (TAT) for each work order, which is the time to complete the requested work and return results to LPS FS: The due date provided on each work order corresponds with expected timeframes for completion. Work should be performed and results should be submitted to LPS FS by the due date listed on the work order. Contractors are required to notify LPS FS of the reason and expected timeframe of any delay as soon as possible before the due date. If a work order is cancelled after it has been completed, results and photos must be submitted to LPS FS within 24 hours to prevent forfeiture of payment. Important: The list provides guidelines. Always check the work order for specific dates. Page 13

16 Note: TAT for work orders is calculated in business days as noted below while the TAT for contractor performance (CPIP) uses calendar days. Refer to the Working in the LPS FS Supplier Network section of this guide for CPIP information. Work Order Service Type Description Required Turnaround Time Regular Initial Secure (Preservation) Initial Services (REO) Property Preservation: Five business days from the assigned date. REO: See work order for due date. Rush High-priority work order. Two business days from the assigned date. Final Provide Access Meet and Greet Verify Utilities Pre-Eviction Inspection To put an FHA property into final condition or conveyance condition. To work with a third party (appraiser, real estate agent, adjuster, attorney or homeowner) to grant entry into the property: Carefully review the work order instructions to determine who is being given access and why. Maintain a record of all times and dates when attempts were made to contact the listed party. To verify if utilities are on or off at a property. FHA or REO to check occupancy prior to eviction. Two business days from the assigned date Attempts to contact the party must be within 24 hours of receipt of the work order. Based on Regular or Rush status of the work order. Within hours prior to eviction date. Page 14

17 Work Order Service Type Eviction Post-Eviction Debris Missing Information Cancelled Description To coordinate the eviction with local law enforcement agency: Arrive prepared to change locks as required by local law enforcement agency. Arrive prepared to remove debris and/or personal belongings or arrange with a moving company to remove personal belongings if required by local law enforcement agency. All crew members should be legal adults with valid ID. To remove post-eviction debris per sheriff requirements, local ordinances, and/or state laws. Work orders that LPS FS processor placed on hold until additional information is obtained: Missing information may include bids, documentation, and/or photos. A work order that is cancelled and no longer required to be completed. Required Turnaround Time Complete per instructions and date provided on the work order. Based on law enforcement agency s direction. As soon as possible. If work was completed in the field, submit results to LPS FS within 24 hours to be eligible for payment. Photo Requirements Property condition photos are required on all orders. Contractors must comply with all photo instructions on each work order: LPS FS requires photos that support all work with clear and date-stamped photo documentation. Updates that do not include photos are not reimbursed for work performed. LPS FS requires the use of a digital camera with automatic date stamp features in order for the photos to be uploaded, date stamped and labelled via the system. Failure to date stamp or label photos results in non payment. The date stamp on the photo must match Performed Date entered into the system: When work spans multiple days, the Performed Date is the last day worked on the property and photos can be dated with any of the dates worked at the property. Page 15

18 Contractors must provide photos that document the condition of the property; however, due to the risk involved in the industry, it may be beneficial for the contractor to provide additional photos that are not requested. Important: The same photos cannot be used for multiple work orders at a property completed on different dates. Each visit to a property requires the following photos: Exterior photo of the home from a distance. Photo of each side of the home (front, sides and rear). Photo of any for sale signs present at the property. Close-up photo of the address to verify work was completed at the correct property: Close-up photos of violations and/or notices (if posted). Before, during and after photos on all orders. Take all before, during and after photos from the same angle. No payment made for work in which the photos do not clearly show the property before, during and after work was completed. Photos of any damage to the property are required to document conditions to the clients. Photos must be uploaded into the system and arranged in a logical manner to facilitate viewing by LPS FS and clients. Label photos to clearly indicate the subject matter or service being documented. Standard bid photos as required. Photos must document the following bid items for the bid review and evaluation process: Location Quantity Dimensions Description of Necessity Note: Use the Photo Checklist to assist with taking all necessary photos. It is available on InfoScape on the Resources > Field Tools page. Refer to the Appendix for a sample of the Photo Checklist. Bid and Eyeball Estimate Requirements Submit a thorough bid for work you feel needs to be completed that is not within an allowable for a particular service type or when client-specific guidelines require a bid. Bids are entered when returning results in the PCR: Take photos. Include a timeframe to complete. Provide photos whe submitting to justify all bids. Always separate bids into proper line items. Page 16

19 Do not use the Miscellaneous and/or Other line items unless there is no other relevant option available. For REO bids, provide the number of days necessary to complete the bid work should the bid be approved. Hint: Save bids by clicking Submit to ensure that the bid does not become an incomplete bid. If any work was completed on the bid or new damages are found, remember to add/update/delete the line items accordingly. To inform LPS FS and the client of damages and to document an estimated cost to repair, submit an eyeball estimate (EBE), which: Includes a detailed list of the damages. Is a contractor s best guess of repair costs. Is not considered a bid so cannot be approved. May be returned to the contractor as a request for a bid. EBEs are entered when returning results in the PCR. Refer to the FieldScape section of this guide for details on entering bids and eyeball estimates in the PCR. Page 17

20 Requesting an Extension When you cannot meet a due date for valid reasons, request an extension via the Contractor Dashboard in FieldScape. Extension requests must be submitted as soon as determined necessary at least 24 hours before the due date to be approved without penalties. Extension request guidelines include: Must be submitted at least 24 hours before due date. No more than three due date changes allowed for a single work order. Each extension request must be decisioned by LPS FS prior to submitting another extension request on the same work order. No changes can be made once a request is submitted. LPS FS understands that contractors face special circumstances but cannot grant an extension in all cases. Client service level agreements and investor guidelines are driving factors when reviewing extension requests. Valid Extension Reasons Reason REO Tenant Occupied REO Cash for Keys Job Scope Awaiting Materials Job Scope Job Size Third Party Meet and Greet Description Property is tenant-occupied, and an extension is needed to work with the tenant s schedule. Occupant does not show for an appointment to swap cash for keys. Awaiting materials for large or atypical job that have an arrival date after the provided due date. Note: Material order form with order date and expected delivery date must be provided. Work that cannot be completed within the given time frame for an extensive job. Third party cancels or reschedules appointment after the provided due date. Invalid Extension Reasons Not enough crew members to complete work Out of coverage area Too busy with other work Not getting paid for a trip charge Page 18

21 Securing The purpose of securing a property is to: Prevent unauthorized entry Protect against weather related damage Determine and document the interior condition at the time of vacancy The client may request a lock change once it is determined the property is abandoned and/or reported vacant. This permits access by authorized parties such as realtors, appraisers, insurance adjustors, maintenance contractors or mortgagors with prior approval from the mortgage holder. Lock Types The type of entry locks used to secure the property depends on the type of loan, the region in which the property is located and client specifications. The LPS FS work order indicates the code used for each lock. The codes vary by investor and client. Refer to the Client Specific Guidelines and Investor Guidelines sections of this guide for the particulars: Common Codes for Securing Lockbox Key Code Padlock ALS A-389 CHS FID NDE 8012 SAM General Securing Requirements Remove trash created at the property including the existing lockset and packaging from the new lockset. Securely screw latch and catch plates in to the door and frame. Double-check the following: The lock works correctly. The cylinder is seated correctly. The property is locked securely. Install hasps with screws of appropriate length; do not use nails to attach hasps. Notify LPS FS of any accessible/inaccessible openings which cannot be secured with existing hardware. Page 19

22 Exterior Doors and Entries Do not damage the door when accessing a property. Note and take photos to document damage to door, door jamb or lock prior to accessing the property. Verify all windows and doors can be locked with existing hardware (if possible). Report doors that cannot be secured, and provide bid to secure (methods include boarding, new lock installation and replacement). Do not nail or brace doors. If Doors cannot be secured due to damage to the jamb There is more than one lock on the door requiring a lock change Then Report the damage. Provide a bid to install a security door. Provide a bid to repair/replace the door jamb. Do not place duct tape and/or securing stickers over the hole where a lock was removed; cover these openings with a metal door hole cover plate. Disable or remove the remaining locks. Note: Follow this procedure unless the work order states differently. You remove hardware Pre-Sale Property Preservation: Store removed hardware inside the secured property, preferably in a kitchen counter drawer. REO Preservation: The removed hardware should not be left at the property. A lock is destroyed Boarding an entire property when required There are secondary or interior access doors There are secondary or interior access doors and access is allowed to the living area There are secondary or interior access doors and there is an existing deadbolt lock Place notes on the work order to inform LPS. Construct security doors to secure front doors. Secure with existing hardware (if possible) unless the work order verbiage specifies otherwise. Secure secondary entryways. Re-key to the required key code. Page 20

23 If There are secondary or interior access doors and there is no deadbolt or existing lock Then Install a slide bolt. Sliding Glass Doors Secure sliding glass doors with existing hardware and a slider lock. Important: Do not brace a sliding glass door with wood, metal, etc. in the track. Lockboxes Install lockboxes when requested on the work order. Contractors must supply their own lockboxes keyed to the correct code in the work order verbiage. Important: Failure to use the correct code results in a return trip at the contractor s expense to install a correctly coded lockbox. Leave two keys in the lockbox if instructed on the work order to install one lockbox. If there is a lockbox at the property, refer to the work order for instructions on how to proceed: If the Work Order Verbiage Includes Remove the lockbox Leave the lockbox in the current location No instructions regarding the lockbox on the work order You are unable to establish contact LPS FS Then Preservation: Place it in a kitchen counter drawer. REO: Dispose of lockbox. Leave the lockbox in the current location. Call LPS FS client team listed on the work order for further assistance. Leave the lockbox in its current location. Document its presence in work order results. Provide supporting photos. Page 21

24 Multiple-Unit Properties When securing multiple units at one property, check each unit to determine occupancy status. Report the number of units and the occupancy of each unit. If All units are vacant and accessible through a shared entryway Some of the units remain occupied and there is a shared entryway Each unit has an individual entryway to the exterior of the property Then Re-key/change the lock on the shared entry door. Re-key/change the lock on the individual entry doors for the vacant units. Secure each vacant unit s individual entryway. Windows Close and lock all windows regardless of the floor on which they are located. Remove any broken glass for safety reasons. Do not brace or install nails to prevent opening a window. If Unable to secure the window(s) with the existing hardware It is necessary to break any glass Then Bid to secure. Remove glass from the property before leaving. Detached Garages, Outbuildings and Exterior Crawlspace Openings Secure doors on detached buildings per client specifications (typically secured with a padlock and hasp). If you are unable to secure a detached building/crawlspace within the allowable or client specifications, bid to secure. Automatic Garage Door Openers Unplug all automatic garage door openers and leave the drive mechanism engaged. If there is no opener, secure with the garage with padlock(s) by placing it on the rail on the inside of the track in a location that prevents the door from being elevated more than two inches. Leave garage door openers in a kitchen counter drawer. Page 22

25 Photo Requirements for Securing Items Required Photos Lockboxes Lockbox upon arrival Keys in the lockbox Lockbox with the key code in place Lockbox on the door to provide perspective of where the lockbox is located Lockbox after removal when a work order requests it to be removed Locks/Doors Door before gaining entry to verify condition Before photo showing the existing lock to verify the status of the knob before installation During photo of the lock being removed After photo of the newly installed lock To verify installation of a padlock: Before photo showing no lock After photo showing the installed padlock as required To verify disabling/disengaging of locks: Before showing the lock can be engaged After clearly showing the lock can no longer be utilized Page 23

26 Boarding LPS FS automatically boards properties only in areas under the governing guidelines that grant preapproval. The governing guidelines include HUD, VA, FNMA, local codes, etc.: Example: If ZIP code is a pre-approved boarding area according to one or more of the above-mentioned guidelines, properties in that ZIP can be boarded right away if needed. Windows and doors must be boarded and/or reglazed according to HUD/VA guidelines and allowable work order specifications. Follow local codes or ordinances that require automatic boarding. Note: Boarding includes removing all broken glass from the frame, surrounding area and property. Submit a bid for re-glazing and replacement of a window when applicable. Obtaining Approval to Board LPS FS is required to obtain approval for boarding at properties in any of the follow circumstances: Boarding cannot be performed per the HUD/VA allowable. The property is not located within a pre-approved boarding area but is severely damaged and unsafe (e.g., fire, flood or other natural disaster). The property is severely damaged and unsafe (e.g., fire, flood or other natural disaster). Important: Follow all appropriate local codes and ordinances; however, if local codes or ordinances require actions contrary to HUD/VA guidelines, provide ordinance details to LPS FS. Boarding Above First Floor/Story Unless otherwise specified, it is not required, even in pre-approved boarding areas, to board above the first floor/story unless: Access is possible without a ladder, and The opening is large enough for a person to easily pass through, referred to as an accessible opening (A/O) Security Bars Boarding is not required for windows and/or doors with security bars unless the windows are broken or missing. Small Openings Secure small openings (i.e., pet openings in doors) with existing locks, even if they are too small for a person to pass through: It should not be possible to open the opening from the outside of the property. If not possible to secure with an existing lock, board with ½ plywood. Page 24

27 Bolt Boarding (LPS FS-Preferred Boarding Method) Bolt boarding is the preferred method of boarding. To properly bolt board a property: 1. Use one continuous piece of CDX plywood to cover the entire opening: For Windows Doors French doors and sliding door openings Secure with 1/2 plywood 5/8 plywood 3/4 plywood Important: Do not use nails, OSB, MDF or thinner plywood. Do not partially board window openings. 2. Fasten with ⅜ carriage bolts, washers and nuts. Make sure there is a minimum of two bolts per brace. 3. Remove storm windows/screens, clearly label with the location of the window, and store inside an interior closet. Note: Only use screws to secure boarding in extreme circumstances and when a valid reason is supplied for not using the bolt boarding method. If screws are going to be used, it must be clearly stated in the bid. Do not use screw boarding for vinyl windows. 4. Remove all broken glass from openings, surrounding interior, and exterior areas, which is included as part of the boarding cost. HUD specification boarding diagram Page 25

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