Managing REO “Ramping Up REO Maintenance”

Managing REO recently published an article by Robert Klein, CEO of Safeguard Properties.

Ramping Up REO Maintenance

Real estate owned assets have to be taken care of and preserved in order to market these homes, which are?competing more and more with the growing traditional home market.

By Robert Klein

It wasn’t long ago when the path to an REO sale was pretty straightforward. After foreclosure, an REO property was placed on the market “as is”, with little more than basic “trash out” and maintenance services, and along came a willing buyer looking for a value-priced property.

In today’s slumping housing market, those days are gone. As traditional-sale homes linger on the market for months and even years in many parts of the country, bargain-hunting buyers have far more choices. REO properties now compete with reduced price traditional homes, and sellers are recognizing the need to rethink their strategies in disposing of REO properties.

In the past, field service companies focused primarily on property preservation – securing, maintaining and inspecting an REO property on a regular basis to preserve the seller’s asset. As the REO market has become more competitive, field servicers have adapted their REO service offerings to help their clients
maximize the value of REO properties in their portfolios.

One of the most important strategies in REO disposition is determining the optimal investment to maximize value and minimize time on the market. Investing too much may price the property out of the market. Investing too little may cause the seller to miss an opportunity to attract a strong buyer in search of a move-in ready family home.

Certainly, market potential is a key factor in the investment decision. A seller is far more likely, for example, to invest $10,000 in upgrades to a property with a half-million dollar sale potential,
compared to a property with a $100,000 potential.

Attention to details

Regardless of the potential sale price of the property, it is essential that sellers make the small investments that make a big difference. Even a significant investment in a high-value property won’t be
enough if a property lacks basic curb appeal and attention to minor details that cost little and add a lot. What are those details?

They start with the potential buyer’s first gaze at the property curb appeal. It won’t matter what a house looks like inside if the exterior is poorly maintained and the property looks neglected. This
is especially true if other properties in the neighborhood are well cared for.

Bottom line, if the house shows like an REO, prospective buyers will begin deducting value the minute they drive up to it. Buyers shouldn’t be able to tell the difference between an REO property and a traditional for-sale property, or for that matter, even an occupied house on the street.

The goal in maintaining the exterior of an REO should be to make it look like every other house on the street. Prospective buyers shouldn’t begin deducting value the minute they drive up. Rather they should immediately begin to imagine themselves living in the home and raising a family there. The grass should be cut, bushes and trees trimmed, and planting areas weeded. Mulching, minor repairs and even some
painting may yield stronger returns on the investment if they help to draw the prospective buyer to the front door.

The next detail to invest in is cleanliness, regardless of the property’s condition. When the buyer walks through the front door, the house should look and smell fresh and inviting. Washing windows and walls, scrubbing floors and carpets, adding air fresheners, and making sure kitchens and bathrooms
are spotless all can add thousands of dollars to the value of an REO property at very little cost. Something as simple as cobwebs can reduce an offer by thousands of dollars.

Higher value properties may warrant additional expenditures such as painting, minor repairs, updated fixtures and lighting, new flooring and carpets. These expenditures may yield additional returns from a buyer willing to pay more for a home that is “move-in” ready.

Protecting “precious metals”

There is an important additional incentive to assure that REO properties are unidentifiable to passers-by as vacant. As scrap metal prices have doubled and even tripled in some markets, vacant properties have increasingly become targets for metal thieves. This is happening not only in urban areas, but in suburbs as well.

All vacant properties are important to protect from vandalism. With REO properties, it is even more important because additional dollars have often been invested to make them market ready. A thief can steal metals that bring hundreds of dollars from a scrap dealer, and the damages they leave behind can run into the thousands.

In struggling neighborhoods, properties can actually end up with negative value if the cost to repair
damages exceeds the market value. If the property has to be demolished, costs can run between $5,000 and $10,000.

As REO properties languish on the market for longer periods, it is even more important to invest in upgraded maintenance packages on selected properties to keep them looking their best. A thief is less
likely to target a property that either appears occupied or one that appears to be receiving regular attention.

The value of teamwork

To move properties out of REO portfolios as quickly as possible and maximize the sale price, REO managers, brokers and field servicers must work as a team. The broker obviously is essential to determine the home’s market potential and to expose it to a wide audience of prospective buyers.

The field servicer’s job is to keep the property in the best condition possible, maintaining the home on a regular basis to the standards of the rest of the neighborhood. That includes cutting the grass, addressing repairs and maintenance issues as they arise, and providing routine “maid service” to keep the interior clean, dusted and fresh.

Brokers and servicers should be each other’s eyes and ears, backing each other up, quality-checking each other, and working together to protect the property interests of their mutual client.



Alan Jaffa

Alan Jaffa is the chief executive officer for Safeguard, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to chief operating officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur of the Year® finalist in 2013.


Chief Operating Officer

Michael Greenbaum

Michael Greenbaum is the chief operating officer for Safeguard. Mike has been instrumental in aligning operations to become more efficient, effective, and compliant with our ever-changing industry requirements. Mike has a proven track record of excellence, partnership and collaboration at Safeguard. Under Mike’s leadership, all operational departments of Safeguard have reviewed, updated and enhanced their business processes to maximize efficiency and improve quality control.

Mike joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities within the organization, including the role of vice president of operations in 2013 and then COO in 2015.

Mike built his business career in supply-chain management, operations, finance and marketing. He has held senior management and executive positions with Erico, a manufacturing company in Solon, Ohio; Accel, Inc., a packaging company in Lewis Center, Ohio; and McMaster-Carr, an industrial supply company in Aurora, Ohio.

Before entering the business world, Mike served in the U.S. Army, Ordinance Branch, and specialized in supply chain management. He is a distinguished graduate of West Point (U.S. Military Academy), where he majored in quantitative economics.



Sean Reddington

Sean Reddington is the new Chief Information Officer for Safeguard Properties LLC. Sean has over 15+ years of experience in Information Services Management with a strong focus on Product and Application Management. Sean is responsible for Safeguard’s technological direction, including planning, implementation and maintaining all operational systems

Sean has a proven record of accomplishment for increasing operational efficiencies, improving customer service levels, and implementing and maintaining IT initiatives to support successful business processes.  He has provided the vision and dedicated leadership for key technologies for Fortune 100 companies, and nationally recognized consulting firms including enterprise system architecture, security, desktop and database management systems. Sean possesses strong functional and system knowledge of information security, systems and software, contracts management, budgeting, human resources and legal and related regulatory compliance.

Sean joined Safeguard Properties LLC from RenPSG Inc. which is a nationally leading Philintropic Software Platform in the Fintech space. He oversaw the organization’s technological direction including planning, implementing and maintaining the best practices that align with all corporate functions. He also provided day-to-day technology operations, enterprise security, information risk and vulnerability management, audit and compliance, security awareness and training.

Prior to RenPSG, Sean worked for DMI Consulting as a Client Success Director where he guided the delivery in a multibillion-dollar Fortune 500 enterprise client account. He was responsible for all project deliveries in terms of quality, budget and timeliness and led the team to coordinate development and definition of project scope and limitations. Sean also worked for KPMG Consulting in their Microsoft Practice and Technicolor’s Ebusiness Division where he had responsibility for application development, maintenance, and support.

Sean is a graduate of Rutgers University with a Bachelor of Arts and received his Masters in International Business from Central Michigan University. He was also a commissioned officer in the United States Air Force prior to his career in the business world.


General Counsel and Executive Vice President

Linda Erkkila, Esq.

Linda Erkkila is the general counsel and executive vice president for Safeguard and oversees the legal, human resources, training, and compliance departments. Linda’s responsibilities cover regulatory issues that impact Safeguard’s operations, risk mitigation, enterprise strategic planning, human resources and training initiatives, compliance, litigation and claims management, and mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. Her practice spans over 20 years, and Linda’s experience covers regulatory disclosure, corporate governance compliance, risk assessment, executive compensation, litigation management, and merger and acquisition activity. Her experience at a former Fortune 500 financial institution during the subprime crisis helped develop Linda’s pro-active approach to change management during periods of heightened regulatory scrutiny.

Linda previously served as vice president and attorney for National City Corporation, as securities and corporate governance counsel for Agilysys Inc., and as an associate at Thompson Hine LLP. She earned her JD at Cleveland-Marshall College of Law. Linda holds a degree in economics from Miami University and an MBA. In 2017, Linda was named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.


Chief Financial Officer

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard. Joe is responsible for the Control, Quality Assurance, Business Development, Accounting & Information Security departments, and is a Managing Director of SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Joe has been in a wide variety of roles in finance, supply chain management, information systems development, and sales and marketing. His career includes senior positions with McMaster-Carr Supply Company, Newell/Rubbermaid, and Procter and Gamble.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.


AVP, High Risk and Investor Compliance

Steve Meyer

Steve Meyer is the assistant vice president of high risk and investor compliance for Safeguard. In this role, Steve is responsible for managing our clients’ conveyance processes, Safeguard’s investor compliance team and developing our working relationships with cities and municipalities around the country. He also works directly with our clients in our many outreach efforts and he represents Safeguard at a number of industry conferences each year.

Steve joined Safeguard in 1998 as manager over the hazard claims team. He was instrumental in the development and creation of policies, procedures and operating protocol. Under Steve’s leadership, the department became one of the largest within Safeguard. In 2002, he assumed responsibility for the newly-formed high risk department, once again building its success. Steve was promoted to director over these two areas in 2007, and he was promoted to assistant vice president in 2012.

Prior to joining Safeguard, Steve spent 10 years within the insurance industry, holding a number of positions including multi-line property adjuster, branch claims supervisor, and multi-line and subrogation/litigation supervisor. Steve is a graduate of Grove City College.


AVP, Operations

Jennifer Jozity

Jennifer Jozity is the assistant vice president of operations, overseeing inspections, REO and property preservation for Safeguard. Jen ensures quality work is performed in the field and internally, to meet and exceed our clients’ expectations. Jen has demonstrated the ability to deliver consistent results in order audit and order management.  She will build upon these strengths in order to deliver this level of excellence in both REO and property preservation operations.

Jen joined Safeguard in 1997 and was promoted to director of inspections operations in 2009 and assistant vice president of inspections operations in 2012.

She graduated from Cleveland State University with a degree in business.


AVP, Finance

Jennifer Anspach

Jennifer Anspach is the assistant vice president of finance for Safeguard. She is responsible for the company’s national workforce of approximately 1,000 employees. She manages recruitment strategies, employee relations, training, personnel policies, retention, payroll and benefits programs. Additionally, Jennifer has oversight of the accounts receivable and loss functions formerly within the accounting department.

Jennifer joined the company in April 2009 as a manager of accounting and finance and a year later was promoted to director. She was named AVP of human capital in 2014. Prior to joining Safeguard, she held several management positions at OfficeMax and InkStop in both operations and finance.

Jennifer is a graduate of Youngstown State University. She was named a Crain’s Cleveland Business Archer Award finalist for HR Executive of the Year in 2017.


AVP, Application Architecture

Rick Moran

Rick Moran is the assistant vice president of application architecture for Safeguard. Rick is responsible for evolving the Safeguard IT systems. He leads the design of Safeguard’s enterprise application architecture. This includes Safeguard’s real-time integration with other systems, vendors and clients; the future upgrade roadmap for systems; and standards designed to meet availability, security, performance and goals.

Rick has been with Safeguard since 2011. During that time, he has led the system upgrades necessary to support Safeguard’s growth. In addition, Rick’s team has designed and implemented several innovative systems.

Prior to joining Safeguard, Rick was director of enterprise architecture at Revol Wireless, a privately held CDMA Wireless provider in Ohio and Indiana, and operated his own consulting firm providing services to the manufacturing, telecommunications, and energy sectors.


AVP, Technology Infrastructure and Cloud Services

Steve Machovina

Steve Machovina is the assistant vice president of technology infrastructure and cloud services for Safeguard. He is responsible for the overall management and design of Safeguard’s hybrid cloud infrastructure. He manages all technology engineering staff who support data centers, telecommunications, network, servers, storage, service monitoring, and disaster recovery.

Steve joined Safeguard in November 2013 as director of information technology operations.

Prior to joining Safeguard, Steve was vice president of information technology at Revol Wireless, a privately held wireless provider in Ohio and Indiana. He also held management positions with Northcoast PCS and Corecomm Communications, and spent nine years as a Coast Guard officer and pilot.

Steve holds a BBA in management information systems from Kent State University in Ohio and an MBA from Wayne State University in Michigan.


Assistant Vice president of Application Development

Steve Goberish

Steve Goberish, is the assistant vice president of application development for Safeguard. He is responsible for the maintenance and evolution of Safeguard’s vendor systems ensuring high-availability, security and scalability while advancing the vendor products’ capabilities and enhancing the vendor experience.

Prior to joining Safeguard, Steve was a senior technical architect and development manager at First American Title Insurance, a publicly held title insurance provider based in southern California, in addition to managing and developing applications in multiple sectors from insurance to VOIP.

Steve has a bachelor’s degree from Kent State University in Ohio.