Contractor Guide Module 2: Performing Work at a Property

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

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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... 11 Property Preservation... 11 REO... 12 FHA... 13 Turnaround Time... 13 Photo Requirements... 15 Bid and Eyeball Estimate Requirements... 16 Requesting an Extension... 18 Valid Extension Reasons... 18 Invalid Extension Reasons... 18 Securing... 19 Lock Types... 19 General Securing Requirements... 19 Exterior Doors and Entries... 20 Sliding Glass Doors... 21 Lockboxes... 21 Multiple-Unit Properties... 22 Windows... 22 Detached Garages, Outbuildings and Exterior Crawlspace Openings... 22 Page 2

Automatic Garage Door Openers... 22 Photo Requirements for Securing... 23 Boarding... 24 Obtaining Approval to Board... 24 Boarding Above First Floor/Story... 24 Security Bars... 24 Small Openings... 24 Bolt Boarding (LPS FS-Preferred Boarding Method)... 25 Window Sashes... 26 Photo Requirements for Boarding... 26 Window Re-Glazing and Replacement... 27 Re-glazing... 27 Replacement... 27 Photo Requirements for Window Re-Glazing and Replacement... 27 Re-Glazing... 27 Window Replacement... 27 Pools and Hot Tubs... 29 Securing... 29 Decking... 29 Freestanding Above-Ground Pools... 30 Gates... 30 Indoor Portable Hot Tubs and Spas... 30 Pool Covering... 30 Pool Safety Covers... 30 Boarding... 31 REO Expectations... 32 Maintenance... 32 Draining and Cleaning... 32 Page 3

Shocking... 32 Winterizing... 32 REO Properties... 33 Photo Requirements for Pools and Hot Tubs... 33 Debris Removal... 34 Exterior Debris... 34 Interior Debris... 34 Vehicles... 34 Photo Requirements for Vehicle Removal... 35 Large Appliances... 35 Personal Property... 35 Photo Requirements for Personal Property... 36 Hazardous Materials... 36 Household Hazardous Waste (Interior/Exterior)... 37 Removing Debris and Hazardous Waste... 38 Photo Requirements for Debris and Hazardous Waste Removal... 39 Eviction... 40 Eviction Work Orders Issued... 40 Pre Eviction... 40 Eviction... 40 Final Securing... 42 Post Eviction... 42 Crew Member Identification... 43 Special Circumstances... 43 Licensed or Bonded Mover... 44 Leaving Personal Property... 44 Signed Confirmation Requirement... 44 Pets... 44 Page 4

Eviction Compensation and Reimbursement... 45 Property Preservation... 45 REO... 45 Photo Requirements for Eviction Compensation and Reimbursement... 45 Eviction Cancellation... 45 Provide Access... 46 Photo Requirements for Provide Access... 46 Grass Cut and Yard Maintenance... 47 Property Preservation... 47 REO... 47 Submitting Bids... 48 Reporting as Work Not Performed... 48 Trimming Shrubs and Removing Snow... 48 Pruning and Removing Trees... 49 Photo Requirements for Grass Cut... 49 Winterization... 50 Antifreeze Type... 50 Applying Winterization Sticker... 50 Dry Heat Winterization... 51 Steam (Wet) and Hot Water (Radiant) Winterizations... 52 Water Supply... 52 Public Water Supply... 52 Well Water Supply... 52 Winterizing Shared Systems... 53 Winterizing Properties with Fire Suppression Systems... 53 Property Preservation... 53 REO... 54 Performing a Winterization Check... 54 Page 5

De-Winterizing a Property... 54 Property Preservation... 54 REO... 55 Reporting Damages... 55 Frozen Properties... 55 Partial Winterization... 55 Reporting Guidelines... 56 Photo Requirements for Winterization... 57 Water Damage and Mold... 58 Photo Requirements for Water Damage and Mold... 58 Pumping Water... 59 Sump Pumps... 59 Portable Pumping System... 60 Hot Water Tanks... 60 Overflow Protection... 61 Dehumidifiers... 61 REO Expectations... 62 Photo Requirements for Pumping Water... 62 Roof... 64 Tarping... 64 Sealing... 64 Patching... 64 Replacing... 64 Reporting Damage... 65 Photo Requirements for Roof... 65 Safety Issues... 66 Installing Handrails/Railings... 66 Capping Electrical Outlets/Wires... 66 Page 6

Photo Requirements for Safety Issues... 66 General Repairs... 68 Installing Drywall/Sheetrock... 68 Painting... 68 Using a Roller... 69 Using a Sprayer... 69 Photo Requirements for General Repairs... 69 Mobile Homes... 70 Providing Cost Verification for BATF... 73 Requirements... 73 Services Requiring a Cost Estimate... 73 Services Not Requiring a Cost Estimate... 74 When Performing a Combination of Services... 74 Submitting a Cost Estimator... 74 Additional Information... 75 Appliance Installation... 76 Appendix Photo Checklist... 77 Revision Date Revision Description Approver(s) 1.0 11/12/2012 Initial publication. Devon Allen Page 7

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

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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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

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

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

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 24 72 hours prior to eviction date. Page 14

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

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

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

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

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 4627 35241 A-389 CHS 5762 67767 FID 7711 44535 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

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

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

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

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

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 99999 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

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

Window Sashes When a window sash cannot be moved to accommodate bolt boarding of the opening, do the following: 1. Remove the sash. If Possible to remove the window sash Then Remove the sash. Not possible to remove the window sash Break the corner panes of glass to accommodate bolt boarding. 2. Clearly mark the window s original location to facilitate reinstallation. 3. Store sash inside an interior closet. Photo Requirements for Boarding Photo Before During After Interior Exterior Description Photo of each opening boarded (includes multiple openings on side of a structure). Photo to justify that boarding has been completed correctly, including the removal of all broken glass (if applicable). Page 26

Window Re-Glazing and Replacement Re-glazing Re-glazing includes the removal of all glass from the frame and surrounding areas of the property: Re-glazing is often requested when windows are broken on REO properties as it maintains the curb appeal of a property for sale. This is also a requirement by HUD for many FHA properties, based on area. Newer vinyl and aluminium windows may not be able to be re-glazed, which must be notated. Plexi-glass should never be used to reglaze a window. If a window can be reglazed, submit a bid to reglaze. Replacement When a window cannot be re-glazed, submit a bid to replace the window: Bid the same grade of window as currently at the property. If windows must be special ordered, provide estimated delivery and installation date(s). Install windows to the proper size and include necessary trim work. Replacement services include the removal of all glass from the frame and surrounding area of the property. Photo Requirements for Window Re-Glazing and Replacement Re-Glazing Photo Before During After Interior Exterior Description Photos of each opening re-glazed (includes multiple openings on side of a structure). Photos to justify the re-glazing has been completed correctly, including the removal of all broken glass (if applicable). Window Replacement Photo Exterior before Exterior after Description Photos of each opening (if multiple openings on one side of structure, a single photo showing all openings is acceptable). Page 27

Photo Interior after Description Photo to justify that replacement has been completed correctly. Page 28

Pools and Hot Tubs Properties may have pools, hot tubs and/or spas, which require several types of services to maintain current value and prevent danger to the community: Securing Maintaining Draining Cleaning Shocking Winterizing Boarding Provide the following information when reporting the presence of a pool or hot tub: 1. Indicate the type of pool present (e.g., above ground, in ground or hot tub). 2. State the method of securing. 3. Confirm the condition of the pool. 4. Bid to repair any pool equipment for an REO property. Securing Follow local ordinances and client specific guidelines included in the work order. If there is no local ordinance mandating a certain type of securing, use the preferred LPS FS method to secure with a durable cover which: Prevents deliberate or accidental entry. Does not detract from the value of the property. However, use the following guidelines to determine the best securing method: Option First Choice Second Choice Third Choice Description Secure with existing pool-securing materials. Secure with commercially available pool cover. Board to 2008-31 specifications with the crossbeams. Decking If There is an above-ground pool with decking Decking is in bad condition Then It is acceptable to cover unless it is in bad condition or a fall hazard. Remove the pool but do not remove decking; just ensure that the decking is not dangerous. Page 29

If Decking is considered dangerous Then Submit a bid to remove. Freestanding Above-Ground Pools If The freestanding above-ground pool adds value to the property and is in operable condition The freestanding above-ground pool does not add value to the property and is not in operable condition Pool is in poor condition or cannot be secured Then It should be secured. It should be removed. Any depression or hazard caused by removal must be remediated. It should be removed. Any depression or hazard caused by removal must be remediated. Gates If Pool or hot tub area is gated Unable to secure the entrance and/or pool gates within the allowable or client specifications Then Secure the pool area by client specifications (typically installing a padlock on the gate). Provide a bid to secure. There are any damaged fence areas Remove any areas of damaged fencing. Indoor Portable Hot Tubs and Spas Indoor portable hot tubs and spas must be drained. Pool Covering Provide a bid to replace. Pools, including hot tubs or spas that share the same filtering system, require a cover that prevents deliberate or accidental entry: Use pool-specific materials. Secure covering tightly. Do not use a tarp and cinder block or bleach bottles to cover. Do not use a tarp and furring strips. Pool Safety Covers The preferred way so secure pools is with a professional grade pool safety cover because: Add value to property Page 30

Secures pool / hot tub while making It accessible to maintain Tends to be more cost effective way to secure Boarding Pool Safety Cover Boarding is not the preferred way to secure a pool but an option if conditions warrant. Conditions necessitating boarding rather than a pool safety cover must be documented and submitted with bids and in work order updates. Boarding must be completed in cases where pools cannot be secured using a cover. Boarding requirements vary by region (include a copy of local requirements when applicable). HUD specification pool boarding diagram Page 31

HUD specification pool boarding photo example REO Expectations Maintenance Above-ground pools are removed or serviced per client request. Drain, clean, refill and treat pool to ensure it is blue. Call from site to restore utilities (if needed). Report any equipment that is not working. When local ordinances mandate, monthly pool maintenance is required on operational pools, hot tubs or spas with attached filtering systems. Draining and Cleaning For in-ground and above-ground pools in good condition with supporting decks/structures, complete the following draining and cleaning procedure: 1. Drain the water, leaving four feet of water in the deep end. 2. Remove trash. 3. Add chlorine and circulate it through the remaining water. Shocking Note: For pools in areas where the local ordinances prohibit draining, secure per the previously mentioned pool securing guidelines. If a pool has become green in color (indicating that algae is growing), a mortgage company may request that a shocking agent be used to kill growth. Instructions are provided in the work order verbiage. Winterizing Some areas may require that pools be winterized during specified timeframes. Fees for winterizing swimming pools are not included in the HUD maximum allowable limit per property. If a pool must be winterized, submit a bid to winterize the pool. Page 32

REO Properties Performing Work at a Property REO properties require weekly/bi-weekly pool care based on client and investor guidelines. Refer to the work order for specifics. For in-ground and above-ground pools in good condition with supporting decks/structures, complete the following draining and cleaning procedure: 1. Remove trash. 2. Clean filters. 3. Clear drains. 4. Add chlorine and circulate it through the remaining water. Photo Requirements for Pools and Hot Tubs Photo Description Before During Photos of all pool services. After Page 33

Debris Removal Debris is: Scattered remains of something broken or destroyed Rubble, wreckage or carelessly discarded refuse Litter Exterior Debris Exterior debris is any debris located outside an enclosed structure on the property (e.g., tree limbs, grass clippings, bags of garbage, broken toys, etc.). Interior Debris Interior debris is any debris located inside the living space on the property including attached/detached garages, attics, basements, crawl spaces and outbuildings. For interior debris, report: Quantity Description Location Interior debris must only be removed if one of the following conditions is met: Constitutes a health or safety hazard (within the allowable) Required by local law enforcement to be removed as part of an eviction Cannot be classified as personal property (within the allowable) Does or may cause the issuance of a code violation Once an FHA Final work order has been issued Note: Provide a bid to change locks on secured detached structures in which you are unable to determine if any health hazards present are present. Vehicles Vehicles should be removed in accordance with local laws. If the cost to remove the vehicle exceeds the client or investor allowable, a bid must be submitted and a reason must be provided. Example: Vehicle on blocks with no wheels. Without a valid reason for the bid, it will be denied. No vehicle is to be removed pre sale. Provide name, address and telephone number of the establishment where the vehicle was taken. Page 34

Photo Requirements for Vehicle Removal Photo Before After Description Photo of the vehicle in its original position. Photo of the vehicle being towed or on a flat bed. Important: If a tow/flatbed photo is not available, a tow receipt must be provided with the removal date, vehicle manufacturer, model and year. After Photo showing the vehicle removed. Large Appliances Typical large appliances include: Refrigerators Washing machines Dryers Ranges Large appliances that are damaged or no longer working should be reported to LPS FS but not removed. Work orders provide direction on the removal of appliances from a property. Proper disposal based on local ordinances is required. Personal Property Personal property can include any asset other than real estate, with the difference that personal property is movable. The asset is not fixed permanently to one location such as land or buildings. The removal of personal property is governed by state or local statute or ordinance first, then by investor or insurer guidelines. Important: Review local and state laws to determine if your area requires an eviction. Certain states require an eviction if personal property is present. Page 35

Personal property includes, but is not limited to: Chairs Clothing Collectibles Dishes Electronics Firearms and ammunition 1 Furniture Grills Jewelry Lawn and yard maintenance equipment Lawn furniture Swing sets Tables Tools Toys Unused construction materials Utensils Vehicles Etc. Important: 1 Firearms and ammunition should be reported as personal property and should also immediately be reported to law enforcement. On your first visit to a property, you must provide the following information regarding personal property to LPS FS: Description Approximate value Photo documentation Personal property should only be removed under the following conditions: As part of an eviction action as ordered by the law enforcement official. The work order specifically states to remove. Photo Requirements for Personal Property When reporting personal property at a property, accurate photos of the personals and their location in the property must be supplied. Hazardous Materials Removal of hazardous materials is investor specific. Important: Review the work order carefully to determine hazardous material removal requirements. Page 36

Hazardous materials include, but are not limited to: Broken glass Car batteries Caulks Chemicals (description required) Dead animals Driveway sealer Feces Gasoline Household solvents (description required) 2 Dry paint in one of two ways prior to disposal: Oil Raw garbage Roof coatings Solvent-based and spray can paints 2 Tires Treated paint products over five gallons in volume (i.e., stain, shellac, varnish, wood preservatives, latex and oilbased paints) 2 Etc. Brush paint onto cardboard to dry, leave lid off of empty paint cans to dry and then dispose of both the cardboard and empty cans. Add absorbent items such as kitty litter or saw dust directly to paint cans to soak up paint and then dispose of the can. Note: Normal household items, which are considered household hazardous waste, should not be considered hazardous materials since they do not require special disposal methods. Bid health hazards in cubic yards and provide: Detailed description of the items Photo justification Household Hazardous Waste (Interior/Exterior) Household hazardous waste (HHW) includes everyday usage and non-specialty items that can be purchased over the counter. Consider HHW as debris and not hazardous materials. Important: When removing or providing HHW bids, observe the guidelines for interior and exterior debris. Page 37

Household hazardous waste includes but is not limited to: Candles, fertilizer and lawn chemicals Canned and non-refrigerated food and drink (alcohol, soda, spaghetti, cereal, etc.) Car wax Detergent Glue Household batteries Household cleaners (air fresheners, laundry and dishwashing detergent, abrasive cleansing scrub, furniture polish, window cleaner, fabric softeners, Light bulbs Oven cleaner Personal grooming products (hair care products, tooth paste, soap, cosmetics, feminine products, rubbing alcohol, bath salts, etc.) Pool chemicals and paint products, if less than five gallons in volume 3 Rock salt and ice melt Etc. etc.) 3 Paint products, if less than five gallons in volume, need not be dried prior to disposal. Removing Debris and Hazardous Waste If All item(s) requiring removal cannot be removed for up to the allowable cost Interior, non-hazardous debris removal is not a HUD requirement Unable to remove property violations for interior/exterior debris within the allowable and/or work order specifications Reporting debris, hazards or personals Then Do not remove anything and provide a bid. Note: Dump fees are part of the maximum allowable cost limit for debris removal. A bid is not required for household hazardous waste (HHW). Report volume and description of the debris. Bid for removal. Specify location and description. Report bid and invoice quantities as the following: For All debris, hazardous and HHW removal Tires and large appliances Quantity is Cubic yards Number not cubic yards Page 38

Receipts requirements include the following: For Dump receipts Original dump and/or storage receipts Requirement Required for all item removal. Must be retained by the contractor for records keeping purposes. Important: All applicable federal, state and local environmental laws apply when removing debris and hazardous waste. Note: Read the work order instructions and thoroughly understand regional specifications. Unauthorized or unapproved removal of any items from the property could result in non-payment of your invoice and/or legal action by the rightful owner. Photo Requirements for Debris and Hazardous Waste Removal Photo Before After After Description Photo showing debris in its current location. Photo of debris on truck or in dumpster. Photo showing debris removed from location. Important: Hazard/debris removal should not be staged or unnecessarily grouped together. Page 39

Eviction An eviction is divided into four separate work orders which are usually completed on separate days: Work Order Description 1. Pre-eviction Inspection Completed 48 72 hours prior to the eviction. 2. Eviction Completed on the scheduled date. 3. Final Securing Completed on the same day as the eviction work order. 4. Post-eviction Debris Removal Completed during or after the eviction depending upon sheriff requirements. Eviction Work Orders Issued Pre Eviction The pre-eviction work order is performed before the eviction work order. The contractor must: Eviction Know status of the property regarding occupancy and personals. Provide details on how occupancy was determined and supply date-stamped photos to justify findings. Know whether or not the eviction will be performed as scheduled. Example A: Pre-eviction inspection completed. Property vacant with personals. The eviction will proceed as scheduled. Example B: Pre-eviction inspection completed. Property vacant with no personals. The sheriff has cancelled the eviction. Example C: Pre-eviction inspection completed. Property occupied. The eviction will proceed as scheduled. No other work, bids or information is needed on this work order. The eviction work order is performed after the pre-eviction work order. The eviction must take place on the day it is scheduled. If for any reason it cannot be completed on that day, note the specific reason why it did not occur in the work order results. Important: Contractors cannot reschedule an eviction. Contact LPS FS immediately if the local law enforcement agency representative is not present for the eviction and if the eviction cannot be performed on the scheduled date. Change one lock for access. Move the interior personal property to the curb. Page 40

Follow sheriff instructions and note all specifics regarding instructions on the work order. For the LPS FS Eviction Form: Complete the eviction form. Take a photo of the completed form(s). Upload the photo with other supporting photos. In the Eviction section of the PCR, include the following: Item Status Crew members Hours Sheriff information Comments Description Indicate Completed or Cancelled eviction status. If the work order was cancelled, provide the reason. Enter exact number of people in the eviction crew. Enter number of hours it took to complete the eviction and total hours. Provide: Sheriff name Badge number Indicate whether or not sheriff signed the eviction sheet. Any specific requests the sheriff had while at the property. Example of entered evication information in the PCR In the Debris Removal Section of the PCR, include the amount and description of any personals removed from the property. Example of entered debris information in the PCR Refer to the FieldScape section of this guide for details on completing the PCR. Page 41

Photo Requirements for Eviction Work Order Take photos of the following: Completed LPS FS Eviction Form Sheriff car Note: If the sheriff does not allow a photo of the car, enter in the work order notes. All eviction crew members Important: Crew members who are not visible are not counted. Providing multiple photos to verify all crew members present is acceptable. Personal property being moved to the curb Front of the property: For pre-eviction inspections Final Securing On the day of the eviction The final securing work order is completed the same day as the eviction work order. If, for any reason, the date is different, provide an explanation in the work order notes. This work order is updated like any other FHA Final Securing work order: Complete all other lock work on this work order (includes all exterior doors on the property and any outbuildings). Report all utility and property condition information. Report the winterization/grass cut information. Provide all information required to place the property into conveyance condition such as bids, photos, property condition, damages, etc. Post Eviction The post-eviction work order is issued to remove debris that was removed from the interior to the exterior of the property during an eviction: If The sheriff requires that the debris be removed in a certain time The sheriff does not require the removal of the debris The sheriff requires the contractor to remove the post-eviction debris on the same day as the eviction Then A post-eviction debris removal work order is used. The post-eviction work order is cancelled. The post-eviction debris removal work order is cancelled. Page 42

If Debris removal is requested by the local law enforcement representative presiding over the eviction The law enforcement representative refuses to sign the form but insists the debris be removed at the time of the eviction Dump fees apply Then It is considered part of the eviction expense, requiring the law enforcement agency representative signature on the LPS FS Eviction form. Provide the representative s name and/or badge number on the eviction form. Take a photo of the dump receipt to provide with the amount charged clearly marked. Note: Save your original dump and storage receipts for your records. Do not enter the property. In the PCR, provide the: Number of men and hours it took to remove the debris to the dump Amount and description of the contents removed from the property Photo Requirements for Post-Eviction Work Order Include the following photos: Crew removing the post-eviction debris Dump receipts (if applicable) Mover s bills (if applicable) Signed LPS FS Eviction form (if applicable) Note: All men in the crew must be clearly shown. The crew member taking the photo is not counted so providing multiple photos to verify all crew members present is acceptable. Crew Member Identification Many municipalities require law enforcement to validate each crew member s identification in order to proceed with the eviction process: All individuals participating in evictions are required to carry photo identification. Individuals include temporary workforce utilized solely for performing evictions. Identification verifies that all members of the crew are at least 18 years of age. Failure of all crew members to provide appropriate identification results in quality control issues impacting CPIP. Special Circumstances Provide to your LPS FS Production Support liaison any published eviction procedure information from any jurisdiction where evictions are performed. Page 43

If work is not done at the direction of the local law enforcement representative and is done based on local law or ordinance, submit proof of the law/ordinance to LPS FS. This includes the addition of men required for the eviction. Licensed or Bonded Mover If A jurisdiction requires a licensed and bonded mover to remove personal property during an eviction A moving truck is rented Then Document the reason for using such a mover and the authority granting permission. Submit an invoice on the moving company s letterhead with your invoice. Submit a receipt on the rental company s letterhead with your invoice. Leaving Personal Property If A jurisdiction requires personal property to remain on the property to allow occupants the opportunity to retrieve it Then Follow the sheriff s direction. Signed Confirmation Requirement If You are directed to return and remove the remaining personal property (e.g., 24, 48 or 72 hours after the eviction) A signed confirmation is not available when you are directed to return and remove the remaining personal property (e.g., 24, 48 or 72 hours after the eviction) Removal is completed due to a local ordinance Then A signed confirmation from the local law enforcement representative present at the eviction is required. Provide the officer s name and badge number on the eviction form. Reference the ordinance in the PCR when returning results. Pets On occasion, occupants leave household pets. When pets are left at the property: Notify the sheriff s department of the existence of animals. Make arrangements with the local humane society for the care and handling of the pets upon the execution of the writ of possession. Page 44

Eviction Compensation and Reimbursement Property Preservation REO The acceptable charge for eviction and post-eviction services is $20 per man hour (rate is subject to contractor discount). Invoice man hours according to the following formula: Number of men multiplied by the number of hours equals (=) total man-hours multiplied by the hourly rate. Example: five men x three hours = 15 total man-hours x $20 = $300 (subject to discount). The acceptable charge for eviction and post-eviction services is $25 per man hour. Invoice man hours according to the following formula: Number of men multiplied by the number of hours equals (=) total man-hours multiplied by the hourly rate. Example: Five men x three hours = 15 total man-hours x $25 = $375. Invoice the following charges in man hours only: For the eviction For removal of personals on the day of eviction for the post-eviction debris removal order For removal of debris for the post-eviction debris removal order Lock changes are reimbursed as normal. LPS FS does not compensate for port-to-port charges for eviction completion. Dump and storage fees are reimbursed as pass-through costs only. Only time spent performing the actual eviction is reimbursed. Minimum hour charges are not allowed unless required by law. If minimum charges are required by law in your area, supply documentation with the results for each eviction to support the charge. For evictions involving multiple units, submit details for each unit. Photo Requirements for Eviction Compensation and Reimbursement A separate report and photos are required for each specific work order. LPS FS requires crew photos for all evictions. The number of men and man-hours must be justified by photo documentation. Duplicate photos are not acceptable. Eviction Cancellation If an eviction is cancelled upon arrival of the eviction crew, contractors may be reimbursed for a maximum of one man hour per crew member. Page 45

Provide Access Provide access work orders give access in to a property to a third party. Sometimes work must be completed at the same time. To review the work order instructions to determine who is being given access and why: 1. Determine the status of the property: If Occupied Unable to reach the third party within three business days Then Notify LPS FS immediately. Notify LPS FS. 2. Complete all work at the same time if LPS FS requests maintenance in addition to allowing access. Note: No additional trip charges are paid for separate visits. 3. Change locks only if specifically requested by LPS FS: Include the key code number and installation location. Do not cause any physical damage when accessing the property, as the contractor assumes liability for any damage(s) to door jambs or windows. 4. Report the following information when returning results: Name of the person who was given access to the property. Length of time at the property. Reason for access to the property (e.g., appraisal, removed property, utility transfer, etc.). Do not provide keys to third parties without prior written authorization from LPS FS: If The third party states that a key provided by the client does not work You verified that key does not work and you were the contractor responsible for the original lock change Then Request the key to verify if it works. No trip charge is paid since the contractor is responsible to provide the correct key code to the client. Photo Requirements for Provide Access Photo During After Description Photos of the person(s) having access to the property. Photo of the property subsequently secured. Page 46

Grass Cut and Yard Maintenance It is LPS FS policy that grass cut work be performed when grass exceeds a height of two inches. Contractors must: Follow all investor guidelines. Take before, during and after photos as noted in Photo Requirements for Grass Cut section. Important: Follow all investor guidelines. Grass cut season ends in September for FHLMC loans. Some states begin in March and end in November for FNMA loans. Property Preservation Services included in the allowable for initial grass cuts and re-cuts are: REO Mow/cut grass and weeds to the edge of the property line, a maximum of two inches high. Trim around foundations, bushes, trees, planting beds and fences. Sweep all paved areas. Dispose of all clippings and incidental debris (e.g., bottles, newspapers, etc.). Only bid weed removal if excessive with photo justification. Follow all local ordinances and regulations. An REO grass cut also includes all of the above and the following: Weed removal in absence of measurable lawn (i.e., desert landscaping) Remove weeds in lawn and beds Edge lawn and beds Note: Provide LPS FS with copies of local codes/ordinances that require actions contrary to HUD/VA guidelines. Failure to observe grass cut policies and guidelines may put you at risk for a chargeback of a grass cut(s). Page 47

Submitting Bids Provide bids for additional work needed: If If the lot is large or is partially wooded Then Provide bids for all of the following: Cut the entire lot. Complete a perimeter cut around the exterior of the property. Grass height over allowable. If you are unable to cut an entire lot due to lack of access to a portion of the yard Do not complete the cut. Provide bids. Reporting as Work Not Performed If you do not think that an initial grass cut or a re-cut is required, do the following: Notify and give reason to LPS FS that you did not perform the work. Advise if the property should be removed from the grass cut schedule. Submit photos supporting the determination. The following are reasons why contractors submit as Work Not Performed: Limited growth Cut by owner Cut by HOA association Report HOA name and contact information Over-allowable bid: Debris in way of grass cut Grass greater than 12 inches high Lot size is over one acre Desert landscape (no grass) Weather conditions Occupied Access denied/gated community Trimming Shrubs and Removing Snow Trim shrubs and remove cuttings once between April 1 and Oct. 31. Remove snow from the entry walk, porch and driveway following a minimum of three inches in accumulation. Provide a bid if you cannot complete for the allowable. Page 48

Pruning and Removing Trees You are not required to remove trees or prune back of branches, unless the tree poses a threat to the property. If you notice a tree branch touching a roof or see a tree that is dead and is in danger of falling on the home or surrounding properties, provide a bid to prune or remove the tree with a clear explanation of the situation. Photo Requirements for Grass Cut Photo Description Before completed grass cuts Photos from the same angle of the front, sides and rear lawn supporting work completed. During grass cuts After completed grass cuts Photos of front, sides and rear lawn showing lack of excessive clippings. Grass cut bids Photos to justify bid including the height and size of the cutting area (lot size). Important: Submitting a duplicate photo on any subsequent work orders is not permitted and may result in disciplinary action. Page 49

Winterization Winterization (wint.), which prevents freeze damage, is completed according to investor/insurer guidelines and/or work order specifications. All winterizations include: Draining thoroughly all plumbing and heating systems Using air pressure to clear the system Adding non-toxic antifreeze to toilet bowls, tanks and all traps to prevent freezing There are three types of winterizations: Wint. Type Description System Dry heat Performed on properties that are heated by gravity or forced air-heating systems. Characterized by the presence of a furnace and air vents in the walls, floor, ceilings or baseboards. Steam (wet) Performed on properties that are heated by a steam heating system. Characterized by the presence of a steam boiler and radiators throughout the home. Hot water (radiant) Performed on properties heated by a hot water heating system. Refer to the Photo Library section of this guide for winterizations photos. Characterized by the presence of a hot water boiler and expansion tank along with large amounts of radiant piping within the walls, floor, or ceilings, hot water radiators or baseboard piping. Note: Contractors must follow all appropriate local codes and ordinances. Provide LPS FS with copies of local codes/ordinances that require actions contrary to HUD guidelines. Antifreeze Type Important: Use only pink, non-toxic, RV antifreeze (propylene-glycol). Never use any oil or alcohol-based antifreeze. If using another color of non-toxic, RV antifreeze, provide a clear photo of the antifreeze label for each winterization completed with the product. Applying Winterization Sticker LPS FS winterization stickers must be used to complete winterizations for LPS FS: 1. Apply winterization stickers to all of the following: Entry door Water heater Electrical box Page 50

Water meter All winterized fixtures: Sinks Toilets Bathtubs Showers Dishwasher Important: Do not use LPS FS winterization stickers on non-lps FS properties as misuse can result in problems for the client, LPS FS and the contractor. Refer to the Working in the LPS FS Supplier Network section of this guide for information on ordering winterizations stickers. Dry Heat Winterization To complete a dry winterization, do the following: 1. Shut off water at the curb (when possible) or shut off the main interior supply. 2. Disconnect the water meter when allowed by the water authority; if not allowed to disconnect, ziptie the main valve. Important: Do not remove the meter from the property. 3. Plug the supply line when the meter is disconnected, using a cap and Teflon tape. 4. Drain the hot water heater, including supply and distribution piping and any fixtures that may hold water; may include water softeners, brine tanks, well water storage tanks, captive air tanks, dishwashers and washing machines. 5. Open all faucets and valves during air pressure clearing at 35 PSI. 6. Close all faucets and valves after draining/air pressure clearing. 7. Pressure test system to 35 PSI using a standalone pressure gauge to: a. Verify it holds pressure for 30 minutes. b. Inspect for leaks/breaks. 8. Clean all sinks, dishwashers, commodes, bathtubs, jacuzzis and floor drains. Page 51

9. Pour one gallon of non-toxic antifreeze into each fixture including kitchen and bathroom sinks, dishwashers, commode(s), bathtubs, jacuzzis and floor drains. 10. Place the completed LPS FS winterization stickers as required. 11. Turn off the electricity and gas (when applicable). Steam (Wet) and Hot Water (Radiant) Winterizations To complete a wet or radiant winterization, do the following: 1. Verify that utilities are operational at the property. 2. Follow dry winterization guidelines for the domestic water system. 3. Drain boiler, radiators and pipes. 4. Open radiator vents but do not remove bleeder pins. 5. Clear lines using air pressure at 35 PSI. 6. Close valves/vents. 7. Pressure test system to 35 PSI using a standalone pressure gauge to: a. Verify it holds pressure for 30 minutes. b. Inspect for leaks/breaks. 8. Install an adequate amount of non-toxic antifreeze into radiant piping, when present. 9. Place the completed LPS FS winterization stickers as required. 10. Refer to HUD/VA service requirements for your jurisdiction. Water Supply Water can be supplied to properties through either a public or well system. Public Water Supply 1. Contact the utility company to disconnect the water supply at the street. 2. Provide LPS FS with utility company contact information. 3. Do not remove water meters from the property. 4. If local ordinance prevents disconnection of meter, do the following: Shut off water at the gate valve inside the home. Provide a photo of the valve zip-tied in the off position. Well Water Supply 1. Turn off the well at the breaker panel and tape switch in the off position. 2. Disconnect the water supply between the property and the pressure tank. 3. Install a hose bib on the pressure tank side of the breaker. 4. Tag bib with For Water Testing : If If surface mounted Then Drain the pump housing. Page 52

If Then If submersible Disconnect the check valve, pump, suction and discharge pipes. 5. Winterize the following: Pump Water softener Brine tank Well water storage tank Captive air tank Winterizing Shared Systems Shared water systems often exist in multiple unit properties or condominiums. To determine if a shared system is present, locate the mechanical room and do the following: If the Individual Unit Can be isolated from the others Cannot be isolated from the system and you can transfer the utilities Cannot be isolated from the system and you cannot transfer the utilities Then Proceed with the winterization as normal. Do not perform a winterization at the property. Transfer utilities to maintain heat at the property. Pour antifreeze in all traps and fixtures and report accordingly. Provide contact information in the work order update to facilitate utility transfer. Winterizing Properties with Fire Suppression Systems Property Preservation Perform a dry heat winterization at a property containing a fire suppression (sprinkler) system unless doing so compromises the function of that fire suppression system by: If The water supply to the fire suppression system can be isolated from the domestic supply The water supply to the fire suppression system cannot be isolated from the domestic supply Then Complete the dry winterization process normally. The water cannot be disconnected. The winterization cannot be completed. Page 53

If There is a fire suppression system at a property There is a fire suppression system at a property and the heating system is wet or radiant Able to transfer utilities to maintain the heat at the property Unable to transfer utilities Then The heat must always be maintained to prevent the suppression plumbing from freezing. Do not winterize a wet or radiant heating system. Transfer the utilities. Provide the utility contact information in the work order update. Important: Contractors are held responsible for damages resulting from improper disconnection of utility service or failure to transfer/provide transfer information to maintain heat in shared system properties and properties containing fire suppression systems. REO If There is a fire suppression system at a property There is a fire suppression system at a property and the heating system is wet or radiant Utilities are not active to maintain heat at the property Then The heat must always be maintained to prevent the suppression plumbing from freezing. Do not winterize a wet or radiant heating system. Call from site. Performing a Winterization Check A winterization check is performed to ensure that the previously performed winterization is still intact. These work orders often have instructions on what to do if the winterization has been compromised: 1. Follow the work order instructions regarding whether to perform work or bid the winterization. 2. Provide a bid to repair and pressure test the system using a standalone pressure gauge for all plumbing damages. Note: If the winterization is reported as intact in the PCR, it becomes the reporting contractor s responsibility. De-Winterizing a Property Property Preservation 1. Verify all valves and fixtures are closed and connected. Page 54

REO 2. Pressurize system using air to ensure system is in tact prior to introducing water. 3. Restore the water connection (water meter and/or at street). Performing Work at a Property 4. Slowly introduce water to system opening and closing fixtures to remove air from system. 5. Flush toilets and run water through traps to remove antifreeze. 6. Verify that the hot water heater is operational. 7. Remove winterization stickers throughout home. 1. Verify that plumbing system is intact and functional. 2. Set thermostat to 55 degrees Fahrenheit and light pilot. 3. Call from site if furnace or thermostat are not functioning. Reporting Damages 1. Report any freeze or vandalism damage to plumbing/fixtures, including failure to hold pressure as this could cause a hazard claim. 2. While winterizing a property when temperatures are below zero, complete a thorough visual check of the system to verify if freeze damage is present. Ice blockage in pipes may allow the system to hold pressure despite the presence of breaks/leaks. If Then Plumbing and/or fixtures are frozen Submit: A bid to thaw and A bid to winterize. Temperatures are below freezing Damage prevents completion of winterization and you can bid to repair Damage prevents completion of winterization and you cannot bid to repair Call from site to provide a bid to thaw and winterize. Submit details and a bid to repair. Provide an eyeball estimate to repair. Frozen Properties Submit a bid to thaw a frozen property. Follow the guidelines specified by the client. DO NOT leave any fixture open. Partial Winterization LPS FS does not recognize partial winterization and does not reimburse contractors for this service. Page 55

Reporting Guidelines When returning results on a winterization, provide the following details: Type of winterization completed. Location of water shut off/disconnected. Any evidence of burst pipes/fixtures/freeze damage, including an eyeball estimate of damages if not providing a bid to repair. If all fixtures were drained, purged with compressed air and antifreeze added. If the system held pressure using a standalone pressure gauge. If the boiler/heating system was drained (applicable for steam/hot water winterizations only). If utilities are connected. Indicate any work not completed and the reason for submitting a bid. Copies of local codes/ordinances that required actions which differ from HUD guidelines. If contacting the utility company to have service restored or transferred into mortgagee s name (in the event the utility company will not comply), provide to LPS FS the utility company name, phone number and an application (if relevant) (applies to Property Preservation Winterizations only). Page 56

Photo Requirements for Winterization Photo Description All winterizations Item to indicate type of system winterized (i.e., steam radiator, hot water radiator, hot water baseboards or manifold) Hot water tank draining Hose attached to drain valve/bucket under drain valve Water running out the other end of the hose and in to appropriate place, such as a drain Antifreeze in commode(s) bowl and tank Pouring pink, non-toxic antifreeze into all traps and fixtures (i.e., sink and floor drains) Blowing water lines with compressed air, including radiant systems Pressure gauge reading to support system holding pressure completed winterization using a standalone pressure gauge Winterization stickers posted, including the electrical box Water meter removal with a plug installed on the supply side line. If meter disconnect is not possible, zip-tie the main valve Well water breaker placed in off position Installation of RPZ valve (if applicable) Well and water-softener draining (if applicable) Thermostat showing heat being maintained (if applicable) Any damage and bid items Dry heat winterizations All winterization photos as required Water meter removal with a plug installed on the supply side line Steam winterizations All winterization photos as required Boiler draining hose hooked up to unit and water coming out other end of hose into appropriate place Hot water winterizations All winterization photos as required Boiler draining hose hooked up to unit and water coming out other end of hose into appropriate place Refilling of heating loops with an adequate amount of antifreeze Page 57

Water Damage and Mold Inspect all ceilings, walls and floors of all levels of the home for any signs of water damage and visible mold. The following conditions may increase the potential for mold and mildew to develop: Floods Inoperable sump pump Roof leaks Broken or damaged water pipes Groundwater infiltration including condensation/dampness on walls Include the following information when reporting all water damage: Specific location Dimensions Cause/source of water damage (e.g., roof leak, flooded basement, etc.) Photos Bid to correct cause/source of water damage Report any visible mold and include the following information: Specific location Dimensions Cause/source of mold (e.g., roof leak, flooded basement, etc.) Approximate time mold has been present Bid to correct cause/source of mold Detailed bid to address mold, including proposed methodology (e.g., bleach and Kilz, abatement, testing, remove, etc.) Note: Although you may not see visible mold, adding comments to your update such as high humidity levels inside home or strong musty smell can serve as indicators of potential issues Photo Requirements for Water Damage and Mold Document the extent of the damage Source/cause of damage (if possible) Page 58

Pumping Water Leaks or damage can causes a significant volume of water to infiltrate the basement/crawlspace of the home. To prevent further damage, water must be removed using a pump: If there is a current flood, always call LPS FS from site for instructions. Indicate the size of the basement/crawlspace and depth of water when submitting bids. Note: Pump water per local ordinance. It is not acceptable to pump water into the street. Sump Pumps Notify LPS FS when updating work orders if a sump pump is present. 1. When a sump pump is present, determine: Location Status of electricity Operational status by doing the following: If Sump pump is on Sump pump is not operational Then Verify if it is operational. Submit a bid to repair and/or replace. Sump pump is off Check the work order instructions for information regarding transfer of electricity services into mortgagee s name. 2. If the sump pump is off and you need to transfer utilities (if applicable), do one of the following: If You are able to transfer the utilities Then Transfer into mortgagee s name. You are unable to transfer the utilities Notify LPS FS when updating the work order. Include the utility company name and phone number. 3. Complete all sump pump work in a professional manner and in accordance with proper plumbing procedures. 4. Make sure the sump pump is submersible. 5. Properly hook up plumbing to a drainage pipe intended for sump pit drainage and not a sewer line. 6. Ensure the sump pump has a vertical action float and not a tethered float. 7. At times it is necessary to dig a well and install a crock in which to place a sump pump. 8. Install a check valve on the dispersal piping at the time the sump pump and/or crock is installed. Page 59

Note: Some cities codes or local ordinances require a battery backup or alarm to prevent overflow. Indicate these requirements in the work order results and provide a bid for installation. Sump pump diagrams Portable Pumping System In the absence of a sump pump, a truck mounted or hand-held pump may be used. Hot Water Tanks Hot water tanks range in size and type of power source. Occasionally, it is necessary to replace a hot water tank as part of a property preservation work order. LPS FS has determined minimum standards that must be met when replacing hot water tanks: Ensure hot water tanks have at least a 40-gallon capacity unless an on demand model is installed. Connect to water lines and heating source. Install according to local ordinances: Pull any applicable permits. Complete any required inspections. Vent per hot water heater specifics (i.e., gas or electric). Page 60

Overflow Protection Hot water tank diagram (left) and photo of hot water tank (right) Occasionally, local codes or ordinances require that overflow protection devices be installed on new hot water heaters. There are several products on the market that prevent flooding due to hot water heater failure. Provide bids for the following items when installing standard tank-style hot water heaters (if required): Drain pan Plumbing installation from drain pan into sump pump crock (if necessary) Electronic overflow alarms Automated water supply shut-off devices Dehumidifiers Dehumidifiers are oftentimes installed in basements to lower moisture levels which could ultimately lead to mold growth. Dehumidifiers are available in many sizes and have different draining options. Furnaces may contain dehumidifiers, typically in concert with the air conditioning unit. If Providing a bid to install a dehumidifier A dehumidifier is included as part of the furnace Then Verify the furnace does not contain a dehumidifier before submitting a bid. Verify that the furnace is operational and include this information in the work order results. Page 61

LPS FS has determined minimum standards that must be met when replacing dehumidifiers: Make sure dehumidifiers are new. Bid to install dehumidifiers with at least a 50 pints in a 24 hour period capacity. Provide the dehumidifier capacity in the bid. Use only dehumidifiers with a drain hose to ensure continuous operation and include information on where the dehumidifier drains. The contractor provides the hose used during installation; using a hose found within the property or yard is not acceptable. Ensure that drainage of the dehumidifier does not cause further damage to the home. Dehumidifier size guide (left) and dehumidifier drainage options (right) REO Expectations When water exists, call from site with a bid to repair, remove or replace water damaged materials such as carpet, drywall, furnace and/or debris. Photo Requirements for Pumping Water Photo Description Pumping Water The depth of water to be pumped Pumping in progress with water going to appropriate place All water removed Page 62

Photo Description Sump Pump Take before and after photos from the same angle Display proper plumbing for evacuation of water from the property (a plastic hose installed through a window or dryer vent is not acceptable) The inside of the crock Hot Water Heater The old hot water tank removed Newly-installed hot water tank, including the correct plumbing and heating source hook-up Dehumidifier Installation Before and after of installation taken from the same angle Proper placement of the drain hose Unit plugged into outlet Page 63

Roof Roofing service includes four main services: Tarping Sealing Patching Replacing The above-mentioned roofing services are necessary to stop roof leaks and prevent water damage. A property cannot have an active roof leak.patching and replacement are being requested more frequently when addressing the elimination of roof leaks. Bids for these services are required when providing bids to tarp. Tarping Tarping is considered a temporary repair, therefore, when tarping you should also supply a bid repair. When tarping, do the following: Use only blue poly-type tarps; using any other materials is not acceptable and may result in further damage and chargeback for work performed. Install tarps over the pitch of the roof to prevent leaks from occurring after installation. Secure tarps with wooden strips around the perimeter and at downward angles across the roof deck. Using bricks or similar items to hold down a tarp is not acceptable and could cause further damage to the home. Sealing Roof sealing (sometimes referred to as coating) involves the use of tar to correct leaks or repair damaged areas. Tar can be used on roof seams, screw holes, flashing or an entire roof. Patching Roof patching is a requested method of repairing roof leaks. Patching involves the use of typical roofing materials (i.e., felt paper, shingles, etc.) to repair damages within a small affected area. Ensure shingles used to patch match the current shingle type and color at the property. Replacing When roofs are damaged beyond repair, mortgage companies request a bid to replace the entire roof. If you are not qualified to replace an entire roof, consult with a professional in the industry for a bid. When providing a bid to replace a roof: Itemize the material needed Provide the method of roofing Include associated labor costs/permit fees Page 64

Reporting Damage Contractors are responsible for reporting roof damage. Include the following information when reporting: Specific details of the roof leak: dimensions, specific location and cause Bid description must include active leak (if applicable) Dimensions for patching Details of tarp size Bid to correct cause/source of water damage Note: If a roof is too dangerous, provide a photo from a ladder labelled, Too poor/dangerous to be on. Photo Requirements for Roof Photo Description Before During Photos for all types of roof services. After Interior Exterior Photos of damage to support need for work being performed. Page 65

Safety Issues Installing Handrails/Railings Material used must be specific to handrail/railing creation. Handrails and railings are installed on the interior or exterior of the home with the following requirements: If. Handrail/railing is installed on the exterior of the home Handrail/railing is installed on the interior of the home Install a handrail or railing if: Then Make sure it is: Made of exterior grade, pressuretreated wood. Painted in exterior grade paint or stain that is complementary to the home. Make sure it is a finished handrail/railing. Was once present and was removed. There are more than three risers and the stairs are open on both sides. Absence of a railing poses a safety risk. Current handrail/railing is unstable. Note: Refer to local code requirements, if applicable. Capping Electrical Outlets/Wires Exposed wires and open electrical outlets pose a safety risk to anyone who may enter the home. Complete the following to correct, when necessary: Cap exposed wires. Cover open outlets with outlet covers. Cover open switches with switch plates. Do not use tape or wood to cover these openings or cap the wires. Photo Requirements for Safety Issues Photo Description Handrails/railings Before photo of the handrail not present. After photo of the handrail installed. Page 66

Photo Capping electrical outlets/wires Description Photos of wire capping must clearly show: Before showing wires to be capped. After showing wires with acceptable capping materials. Photos of outlets must clearly show: Before showing outlets to be covered. After showing outlets with acceptable covering materials. Page 67

General Repairs Installing Drywall/Sheetrock Some circumstances require the installation of new drywall. LPS FS requires that drywall be installed according to industry standards. When installing drywall/sheetrock, do the following: Use material that is for the stated purpose of drywall or sheetrock. Tape joints. Apply three coats of joint compound in a manner to minimize sanding. Texture to match existing materials. Important: Only domestically produced drywall is not acceptable. Diagram showing appropriate drywall installation Painting Some homes may require painting of an area for reasons such as damage caused by vandalism. Use the appropriate type of paint for where you are painting (i.e., interior vs. exterior). When painting is requested, the work includes: Prep work (including primer when necessary). Place tape and drop cloths over trim, outlet covers, etc. to prevent paint drips and splatters. Two coats of paint in a neutral color (unless otherwise specified) that is approporiate to a variety of décors. Trim work. Cleanup including removal of masking and clean up of paint drips. Page 68

Using a Roller Mask wall and trim to prevent overspray. Do not overload brushes/rollers to prevent drips and bubbling. Using a Sprayer Mask all exposed surfaces (including air vents) to prevent overspray. Partition off room to prevent spraying other areas. Back roll wall after spraying. Photo Requirements for General Repairs Photo Drywall/sheetrock installation Painting Description Before and after to clearly show the affected area(s). Before, during and after to clearly show the affected area(s). Page 69

Mobile Homes Mobile/manufactured homes present unique challenges at the time of foreclosure, so it is important to identify these properties accordingly. Identifying mobile home/manufactured housing units are critical to the client s foreclosure process: Thoroughly review the type of property Be consistent from month to month Manufactured homes have a model and serial number. The identification number, known as the HUD tag or HUD sticker, is usually riveted to both the front and rear of the home. By tracking the HUD sticker, a lender can ensure that the original state of the motor vehicle title has been cancelled or surrendered to the state as part of the home s conversion to real property. Two tags should be affixed to the mobile or manufactured home: Tag Description VIN Tags Information listed on VIN tags typically include the manufacturer, the state in which it was manufactured and a unique VIN number for identification purposes. If the home is a multi-wide unit, the serial or VIN number contains the letters A/B for a double-wide unit or A/B/C for a triple-wide unit. A photo of the tag is required. HUD Certification Tags All manufactured/mobile homes constructed after 1977 are required to have a HUD certification tag affixed to the rear section of the property. This small metal tag includes the point of origin and the home s serial number. If the home is more than one section (double-wide, triple-wide, etc.), each section has a tag and the information. A photo of the tag is required. VIN Tag (left) and HUD Certification Tag (right) Page 70

Important: When working on a mobile or manufactured home, it is very important to verify the VIN number/hud number and record in the PCR. If unable to provide the VIN number/hud number, include a comment explaining why. Performing Work at a Property Locating the VIN and HUD tags can be challenging, especially if the home was manufactured before 1977, as not all of the tags are located on the rear section of the property. The following are common locations for tags on homes built before 1977: Kitchen cabinets Closet Under kitchen or bathroom sinks Inside circuit breaker or power panel Utility closet or by the hot water tank On the home s skirting These properties may or may not be affixed to a permanent foundation. Mobile home not on a foundation (left) and manufactured home on a foundation (right) Important: Mobile homes and manufactured homes are reported as a mobile. The client may request manufactured home identification information to perfect the property title. The home is probably classified as personal property owned either by the mortgagor, the manufacturer or a prior owner. A bank cannot legally take title to a manufactured home until it is attached to land and classified as real property. Additional information may be needed for the lender to file required documents to legally affix the home to the land where it sits and change the classification from personal property to real property. Commonly requested information can be located on the Compliance Certificate or Data Plate which may be located in the following areas: Information Source Data Plate Location Is affixed in a permanent manner to the home. Page 71

Information Source Compliance Certificate Location In the master bedroom closet, water heater closet, kitchen cabinet or inside the electrical panel. Requested information from either information source includes: Year or date manufactured Make Model Manufacturer name and address Serial/VIN number (required) HUD tag number (required) Dimensions of the home Page 72

Providing Cost Verification for BATF Cost verification is required for all bid after the fact (BATF) work orders to: Bring structure to fees associated with BATF service(s) rendered. Reduce processing delays and invoicing challenges. The demand for the use of cost estimators for cost verification in our industry is increasing due to investor and client needs to structure reasonable and consistent rates for property preservation and repair services. Cost estimating tools are intended to provide structure when scope of work goes outside LPS FS published rates. The bid verification document should be viewed as invoice verification for only services rendered under the BATF work order and should not include any other bids related to property condition. Requirements The cost estimating tool you utilize to complete bid validation must be an independent, third-party tool that has construction and property maintenance bidding functionality. The cost estimating products below, for reference only, are designed for use in our industry: XactPRM Marshall and Swift PowerClaim RepairBASE If your organization utilizes another cost estimator that you believe meets LPS FS requirements, contact your Production Support liaison to provide details for review and consideration. Services Requiring a Cost Estimate Cost estimates are required for the following BATF services: Emergency roof repairs patch, repair and tarping Note: A bid to repair and a bid to replace roof should be submitted with supporting cost estimates. Basement pumping Sump pumps Securing pool covers and boarding Out-of-scope grass cut (based on LPS FS Grass Cut Pricing Matrix) Grass height greater than 24 and lot sizes greater than one acre Violation work orders Page 73

Services Not Requiring a Cost Estimate When performing BATF work within LPS FS published rates, a cost estimate is not required for the following services: Debris removal Grass cut Lock work Winterizations Important: Photo documentation is critical in supporting the necessity and scope of all work performed. When Performing a Combination of Services If Performing debris removal, lock work, grass cut, winterization or a combination of only non cost estimate-required services Performing a cost estimate-required service in addition to a non-required service (e.g., roof tarp along with a lock change) Then No cost estimate is required. A cost estimate including all line items is required for all BATF services rendered. Include in the estimate fees associated with debris, grass cuts, lock work and winterization paid at LPS FS published rates. Important: Cost estimates must always include all line items invoiced on an order. Submitting a Cost Estimator When work is completed BATF, it is necessary to provide a cost estimate in addition to completing the BATF submission and invoicing for work completed. 1. Enter all line items completed BATF into the bid form. Important: The amount invoiced for BATF work by line item and in total cannot exceed the amount on the cost estimate. The invoice amount will be decreased to match the amount of the cost estimate if necessary. 2. Submit bids for any necessary items not yet completed. Do not submit a cost estimate on bid-only work at this time; a cost estimate only applies to BATF items. 3. E-mail the cost estimate to LPS FS. a. Address the e-mail to invoicevalidation@lpsvcs.com. b. The subject line should include the work order number and property address, city and state. An e-mail subject line example is: WO#1234567 1234 Main St., Solon, OH c. Attach the.pdf file of the cost estimate. Page 74

Important: Before sending the e-mail, review the work order number and address to ensure it is correct. If LPS FS is unable to locate either, you will receive a reply e-mail requesting additional information, which will delay the BATF submission. d. Send the e-mail. 4. Submit results per the usual updating process in FieldScape. Additional Information Performing Work at a Property Cost estimating tools are not error proof and are only as accurate as the person entering the information. When utilizing a cost estimating tool to complete a bid or invoice verification, make sure the values populated are logical. If totals do not seem reasonable, check the line items to ensure what is estimated reflects what you are doing and update accordingly. LPS FS checks QC bids submitted with and without a cost estimator to ensure competitive and appropriate bids are submitted. Keep in mind the following: Utilize the comments or notes section within each line item of the cost estimating tool to add additional information and clarification of the work performed: Standard verbiage contained within the programming of a tool may not accurately describe the service. Clarify or add comments to minimize misinterpretation. Photos submitted must support necessity of work scope and proper completion of services rendered. Confirm that any cost estimating tool used by your company for LPS FS orders contains maintenance and/or preservation data line items. Overhead and profit (O/P): Items such as grass cuts, lock changes, winterizations, roof tarps and snow removal do not support an O/P mark-up. Confirm cost estimator tool settings for O/P to ensure the default settings already include O/P in the line item, the percentage and where it is displayed on each estimate. O/P is designed for larger projects that take a prolonged period of time, coordination of specialty trades and other excessive administration. Only show O/P line items if repair is large with multi-trades not to exceed 10 percent/10 percent. All cost estimates reports must show: Property address Work order number Name of the cost estimate tool used Page 75

Appliance Installation Appliances installed at a property serviced for LPS FS must be new and must match the décor of the property: Installing refurbished appliances is not permitted. Appliance installation must be completed in a professional manner. New appliances must fit the dimensions and design of the area. Submit bids for appliance installation with condition and value of the property in mind: Describe the installed appliances in the bid form by including the size, type and color. Complete descriptions allow LPS FS and the client to validate that the appliance fits the condition and marketability of the asset. Example: Install 32 gas stainless steel oven/range combo unit. For an REO property, discuss the type of appliances preferred with the broker to ensure your bid is in line with the expectations of the potential buyers. Keep receipts from the purchase of appliances for reference should questions or concerns arise. Page 76

Appendix Photo Checklist Page 77

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