Page 266 – Safeguard Properties

Robert Klein Contributes Feature Article in DSNews

Posted on September 13, 2018October 4, 2018 by Safeguard

Worth the Risk?? Managing the Challenges of Vacant, Low-Value Properties in Your Portfolio?

The stories of how vacant properties wind up vacant are almost as varied as the properties themselves. Two years ago, so-called bank walkaways began to make headlines as part of the housing crisis. Since then, the public perception has come to be that mortgage companies are the reason why most vacant and abandoned properties exist.

The fact is, far more vacant properties exist because of homeowner abandonment, not bank walkaways. Homeowners in default often abandon their properties without making contact with their mortgage companies. When this happens, field service companies are tasked with conducting default inspections for mortgage servicers. These inspections have one goal: to verify occupancy on a home in default.

Industry data indicates that 20 percent of the properties inspected are eventually found vacant?abandoned by the homeowner. Once a home is determined vacant, a property preservation team will take steps to secure the property and will continue to inspect and maintain it as long as it remains in the servicer?s portfolio.

In many cases of homeowner abandonment, no lienholder even exists. Vacancies often result when an aging parent with no mortgage moves into a nursing home or passes away and leaves the home to children who may not be in a financial position to keep up with utilities, taxes, and maintenance. The home is simply abandoned.

Regardless of how properties become vacant, the result is that they are at high risk to lose value because of vandalism and deteriorating conditions. They are more likely to create a nuisance and safety risk to the neighborhood, straining already cash-strapped municipal budgets. Beyond that, they also negatively impact the value of surrounding properties.

Ideal World vs. Real World
In an ideal world, if a homeowner defaulted on a loan, the mortgage company would make contact with the owner and discuss his or her financial situation. The mortgage company would talk about the possibility of a loan modification, short sale, or a deed-in-lieu of foreclosure. If those options were not viable, a foreclosure proceeding would begin. The homeowner would remain in the home through the foreclosure and vacate after the foreclosure sale concluded. During that time, the home would be occupied and thus protected. It would not create a nuisance; its value would be maintained; and its condition would not deteriorate. As an REO, the property would be placed on the market for sale.

Unfortunately, the real world presents a much different scenario. More homeowners with underwater mortgages are abandoning properties, leaving the responsibility to mortgage companies to keep them maintained and secured.

The mortgage industry spends billions of dollars a year on field servicing to perform ongoing inspections and maintenance services on vacant properties in its portfolios. This is done not only to protect collateral interests in these properties, but also to uphold property values and protect the well-being of the neighborhoods in which they are located.

However, even a vacant property that receives the highest level of property preservation services will deteriorate because there is simply no better substitute than occupancy for keeping a property in prime condition.

To address today?s real-world housing challenges, the mortgage industry focuses on four key strategies to reduce the numbers of vacant properties, maintain the value and condition of properties that do become vacant, and return vacant properties to viable occupancy as quickly as possible.

1 Reducing Lengthy Foreclosure Processes
Depending on the state, the foreclosure process can take several months?or even years?to complete. The rationale behind a protracted foreclosure process is to protect the homeowner and allow more time for the mortgage company and the borrower to explore alternatives to foreclosure.

That said, when a property is vacant and is without a homeowner to protect it, a drawn-out foreclosure process can be counterproductive. Vacant properties must follow the same foreclosure process as occupied properties. Government moratoriums on foreclosure sales and the recent voluntary halts in foreclosures by mortgage servicers in response to robo-signing controversies only extend the time vacant properties remain in limbo.

Meanwhile, the vacant property is at greater risk despite ongoing field service attention. Squatters may move in, or the property could become a haven for illegal drug activity. Thieves will remove copper pipes, furnaces, ductwork, aluminum siding, and other metals to sell for a few hundred dollars. The resulting damages often render the home valueless. In fact, the property may actually end up with negative value because demoli-tion costs can exceed the market value.

For this reason, the mortgage industry advocated for change in state laws to allow vacant properties to move through the foreclosure process as quickly as possible. This is critical to protect property values and their condition and to prevent them from contributing to neighborhood blight.

Once a property is certified as vacant, it should be treated differently from an occupied property and accelerated to foreclosure. This change helps maintain the safety of neighborhoods, stabilize housing values, reduce the strain on municipal budgets, and uphold a community?s tax base.

2 Code Enforcement Outreach and Collaboration
The mortgage industry and code enforcement officials across the country share a common goal to address code violations and other vacant property issues as quickly as possible. For years, mortgage servicers and enforcement officials have worked to overcome myriad challenges that stand in the way of sending and receiving timely notification when property issues occur.

When many cities enacted vacant property ordinances as a means to identify a current contact for notification of property issues, the mortgage servicing industry offered alternatives to help cities achieve that goal without the administrative burden and at lower cost. By engaging in dialogue at conferences and code enforcement summits, both sides learned to understand each other?s organizational challenges and identify ways to overcome them and connect more effectively.

Today, code enforcement officials in major cities and smaller municipalities alike have access to new resources that provide instant communication with property preservation contacts who have authority to act immediately to address code violations and other property issues.

Field service companies also collaborated with city code enforcement departments to share best practices, such as the most effective ways to secure properties and winterize plumbing to prevent burst pipes.

While it is impossible to calculate the value of such collaboration, the savings to servicers in reduced fines, penalties, and property damages can add up to millions of dollars. At the same time, protecting housing stock and the safety of neighborhoods is invaluable to code enforcement officials and municipalities.

3 Reaching Out to Help Borrowers
Another perception that persists in the minds of the public is that mortgage companies are eager to foreclose on defaulted borrowers. The data tells a different story. RealtyTrac reported that in 2010, 1 million homes were foreclosed. At the same time, the Mortgage Bankers Association (MBA) reported that 1.5 million borrowers received loan modifications.

Why were there 50 percent more loan modifications than foreclosures? It simply makes more sense for everyone concerned. Loan modifications help borrowers keep their homes and stabilize their lives. They help communities by reducing the potential inventory of vacant properties. Lastly, it is more cost effective for servicers to keep bor-rowers in their homes than to foreclose and sell the properties.

Yet efforts such as loan modifications and short sales are not without their challenges. Many borrowers who pursue modification are overwhelmed by the paperwork necessary to qualify for government programs and fail to complete the process. To overcome this, servicers are offering assistance. The long time frames to complete short sales often result in missed sales opportunities, and right now, the industry is discussing ways to reduce the wait.

Among the best practices discussed in the industry is providing a ?one-stop? contact for borrowers to help them understand all of their options?loan modifications, short sales, and deeds-in-lieu. Servicers also contribute financially to nonprofit organizations that provide counseling and assistance to troubled borrowers.

Mortgage servicers recognize that borrowers facing foreclosure are under tremendous stress and are working to help them find the right solution to regain their financial footing.

4 Pursuing New Alternatives for Property Disposition
Unfortunately, in many cities, there are far fewer homebuyers than homes available for sale. In these cities, legislative efforts are influencing urban planners and the mortgage industry to collaborate on new ways to dispose of surplus properties.

For many years, mortgage servicers donated properties on an individual basis to land banks, land trusts, and neighborhood development agencies.

One such market taking advantage of these programs is Cuyahoga County, Ohio, which includes Cleveland. A land bank was established in 2010 that demonstrated early success. Now other cities are studying it as a model for their own programs.

The Cuyahoga County Land Bank already took in hundreds of low-value and distressed properties from large servicers, HUD, and Fannie Mae. These homes will be evaluated and either assembled into parcels for new use, demolished, renovated, or sold. The city of Chicago is in the process of establishing a not-for-profit entity that can function in a similar way as a land bank.

Private investors also are considering ways to purchase portfolios of surplus properties from lenders and servicers prior to foreclosure and allowing borrowers to remain in the homes as tenants.

No one solution will help the country move out of the housing crisis, just as no one factor led to its creation. One element common among the strategies showing the most promise, however, is a willingness and a commitment to address the challenges in a spirit of collaboration. And teaming up to work together toward a common goal is an approach that?s anything but risky.

Robert Klein is founder and chairman of Safeguard Properties, the largest mortgage field services company in the U.S.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

Safeguard Properties Announces Training Partnership with AACE

Posted on September 13, 2018October 29, 2018 by Safeguard

As reported in DSNews, Safeguard Properties announced a training partnership with the American Association of Code Enforcement (AACE).

Safeguard Properties Announces Training Partnership with AACE

Safeguard Properties, a mortgage field services company headquartered in Ohio, has partnered with the American Association of Code Enforcement (AACE) to offer a training and certification program free of charge to code enforcement officials.

AACE and Safeguard will serve as co-hosts to present seminars to AACE?s membership. Available nationally, the program is conducted via an online, on-demand Webinar platform, the first offered by a mortgage field services company.

Code enforcement officials receive 1.0 continuing education units (CEUs) for participating in the program. Webinar content and training materials were developed
by the Community Initiatives Department of Safeguard Properties in consultation with code enforcement officials across the country.

?Cities across the country have been in the grips of a housing crisis for years, and the need has never been greater for trained and qualified code officers,? said Robert Klein, founder and chairman of Safeguard. ?AACE has been a tireless advocate to support the code enforcement profession, and we are honored to partner with them to help their members meet and maintain their professional certification requirements and to help ease the financial burden of municipalities.?

The training program provides an overview of best practices pertaining to property preservation as well as tools and resources to assist code officials with day-to-day responsibilities of maintaining the integrity of properties in their communities.

?The partnership with Safeguard is an invaluable service to our membership,? said Sherri Johnston, AACE president. ?Robert Klein and Safeguard were the first to reach out to the code enforcement community to foster collaboration on behalf of the mortgage industry. Their initiative to create and offer this program for our membership is further demonstration of their commitment to share best practices that benefit code officials, municipalities, and the mortgage industry alike.?

To view the online article, please click here.

Safeguard Founder Opines on Mortgage Servicer Bias Claim

Posted on September 13, 2018October 29, 2018 by Safeguard

Robert Klein, founder and chairman of Safeguard Properties, was featured in the Housing Wire article, titled Safeguard founder opines on mortgage servicer bias claim.??

Safeguard founder opines on mortgage servicer bias claim?

Robert Klein, founder and chairman of field services firm Safeguard Properties, says there are several possible reasons to explain why some REO properties benefit from higher levels of upkeep, but he has yet to see the “demographic make-up” of the neighborhood dictate the terms of service.

Klein made that statement while responding to questions about the National Fair Housing Alliance’s recent report in which they claim mortgage servicers, lenders and asset managers may be providing reduced levels of maintenance and upkeep to properties in minority-populated neighborhoods when compared to REOs in other communities.

The Washington-based trade group and three partnering agencies said lawsuits against eight lenders and asset managers could be filed in the investigation into the upkeep of REO homes in minority neighborhoods. The suggestion is those properties are receiving inadequate care when compared to REOs in predominantly white neighborhoods.

While Klein is not tied to the report or investigation in anyway, he answered general questions about how firms assess service levels for REO properties.

“I have never received a note from a client to lower the level of? maintenance on a property,” Klein said. “The clients we have represent a huge chunk of the industry. Not a single complaint has been directed on the minority issue.”

He said the varying levels of maintenance and curb-side appeal that surface when evaluating properties in several different neighborhoods are more likely to be associated with the prolonged foreclosure presale process, which can last up to two years in some cases. During the pre-sale process, he says the hands of servicers, asset managers and lenders are tied when it comes to what they are allowed to do.

“Depending on the status of that delinquent loan ? whether it’s presale or post-sale, there are several legal connotations in terms of what actions the lender can take,” he said. “If a property is in presale and it has been going through the foreclosure process, the lender is limited in what they can perform legally. They cannot just go in and do whatever they want to do.”

Klein added, “I think it is very critical and important that whoever is doing the investigation understands the process and the legal aspects of what can and cannot be done.”

As far as field services managers or asset managers being instructed to treat certain properties differently by clients, Klein said that doesn’t happen. If Safeguard is asked to mow loans for a particular servicer or client, the deal requires the firm to offer that service “across the board,” he explained.

To view the online article, please click here.

Safeguard Founder Discusses Cleveland Pilot for Community Revitalization in DSNews

Posted on September 13, 2018October 29, 2018 by Safeguard

It’s a basic economic principle that when supply exceeds demand, prices go down. Housing prices in the U.S. continue to decline because the supply of available properties far exceeds the pool of potential buyers. In many neighborhoods, the problem is further exacerbated by the presence of deteriorated, vacant, and abandoned properties that have lost most of their value and negatively impact the value of surrounding properties.

The S&P/Case Shiller 20-city home price index in November 2011 showed that property values in the United States had fallen 3.7 percent since November 2010 and 33 percent since 2006. In a February 2012 article citing that report, the Wall Street Journal observed that the data included foreclosed properties that sold at lower prices than their previous sales because of deterioration and poor maintenance.

It is a scenario that plays in communities across the country. Home values in what were once solid middle-class neighborhoods that epitomized “pride of ownership” fell because of the growing presence of vacant and abandoned properties. As the numbers of neglected and decaying properties increases more homeowners with negative equity in their homes simply abandon them. By the time these abandoned homes move through the foreclosure process, which can take months and even years in some states, they too deteriorate and lose much of their value. Low-value properties often become nuisances and eyesores in their neighborhoods and negatively impact the housing values of surrounding properties. Even worse, they deter prospective homebuyers from moving into the neighborhood, further perpetuating the cycle of foreclosure and declining property values.

To reverse that cycle, a comprehensive approach is required to address three critical needs: 1) demolition of substandard and unsalvageable properties; 2) possession and rehabilitation of vacant properties; and 3) assistance for existing homeowners in distress. All three strategies must be undertaken simultaneously.

A Pilot in Development
The Slavic Village neighborhood of Cleveland, Ohio, became the face of the nation’s housing crisis in 2007 when it experienced the highest foreclosure rate in the country. Today, it and many communities like it have reached a tipping point. They retain a strong core of residents, businesses, civic leaders, churches, and neighborhood organizations committed to revitalization. With a solid plan of action, these com-munities can be saved. Without one, the cycle of decline will continue.

Because of its potential for redevelopment, a pilot project is being planned for Slavic Village that could become a model for other communities. It is a collaboration between the community development organization, Slavic Village Development, the mortgage servicing industry and investors, and Cleveland-based national companies Safeguard Properties and Forest City Enterprises, each with a strong commitment to community development and revitalization.High Hopes in OhioDerelict Cleveland neighborhood is targeted as a model for community revitalization.

It also will involve participation from the city of Cleveland, Cuyahoga County, the county’s land bank, neighborhood development organizations, credit counseling agencies, and the mortgage servicing industry.

The pilot will simultaneously address the need for demolition, property rehabilitation, and homeowner assistance. The strength of the program is that it takes a wide view to assess the needs and develop action plans for large blocks of properties within an entire community rather than a “one-off” approach that fails to make an impact.

A target area of 2,216 homes, among approximately 9,000 housing units in Slavic Village, was selected for the pilot. Approximately 1,942, or 88 percent, are occupied and 274, or 12 percent, are vacant.

Demolish What Can’t Be Saved
Until unsalvageable vacant and abandoned properties can be demolished, the rebuilding process can’t begin. The very presence of these properties saps the life out of the neighborhood. They are eyesores and nuisances that attract criminal activity. Many have been stripped of their plumbing, siding, furnaces, woodwork, lighting, and anything that gave them character. They are beyond repair, and nobody will invest in them. Worse yet, nobody will invest in the properties around them until the eyesores are gone.

Demolition doesn’t shrink communities or reduce the supply of existing housing. It eliminates nuisance structures that hold back redevelopment. This is why the first step in the pilot is to identify unsalvageable properties and obtain the funding necessary to demolish them. Under the pilot, approximately 64 homes were identified for demolition because they were found vacant, unsecured, and in unsalvageable condition. Once a detailed analysis of vacant and boarded properties has been completed, more properties may be added to the demolition list.

Once these properties are demolished, the vacant land can be transformed in various ways. Some will become green spaces and infrastructures for streetscapes, bike lanes, walking trails, community gardens, and other amenities. Neighbors next door to vacant land will have the opportunity to expand their yards. Other properties will be conducive for commercial development.

Funding for the demolition will be sought in partnership with the city of Cleveland, the Cuyahoga County Land Bank, and mortgage servicers. Green space and infrastructure partners will include the city of Cleveland, neighborhood development organizations, foundations, and other governmental and community agencies.

Rehab Properties to Sell or Rent
The pilot will rely on the private sector to rehabilitate vacant properties to provide safe, well-maintained, and affordable housing for rent or purchase.

Under the pilot, approximately 200 vacant properties will be identified for rehabilitation. Once repaired and remodeled, the homes will be available for direct purchase or through a lease-purchase for homeowners who either do not qualify for loans or who are working to repair their credit. Homes in need of modest repairs may also be marketed at a lower cost to qualified “do it yourselfers” who can demonstrate the financial ability to make needed repairs. A key component of this phase also will include credit counseling to help homeowners become and remain fiscally responsible.

Safeguard Properties will oversee the repair and remodeling of homes to ensure work meets established standards for quality, timeliness, and budget. This will help assure homebuyers—especially first-time homebuyers—that they will not incur major unexpected expenses on their homes for a reasonable period. Unexpected and expensive repairs, or repair work done improperly, are major reasons why many homeowners either fall behind on their mortgages or their homes fall into disrepair.

Financing, property management, credit counseling, loan assistance, and related services will be done in partnership with Slavic Village and neighborhood housing agencies.

Although not part of the pilot, it is important to note that a major contributor to the deterioration of vacant properties is the fact that Ohio has one of the longest foreclosure processes in the country. When properties are occupied, an extended foreclosure process makes sense to give homeowners time to work out their finances and keep their homes. However, when homes are vacant and abandoned, there is no homeowner to protect. Until the foreclosure can be completed, a servicer, a land bank, or other entity can’t take legal possession or assume full responsibility to repair a property and get it reoccupied. The longer a property sits vacant, the greater the risk that it will deteriorate, lose value, and negatively impact surrounding properties.

This is why Ohio is among the states considering legislation to accelerate vacant and abandoned properties for foreclosure. This will help to protect the condition and value of properties, especially those in neighborhoods such as Slavic Village, with older housing stock that provides affordable and decent housing for first-time homebuyers and people with modest incomes. The more vacant properties the coalition can protect and preserve, the more housing it can make available to people who might not otherwise have the opportunity to own a home.

Assist Distressed Homeowners
Helping distressed homeowners remain in their homes is critical to reduce the numbers of vacant and abandoned properties and uphold property values. The Slavic Village pilot includes two initiatives to help existing homeowners who are in financial distress. One offers assistance with home repairs. The other assists with loan modifications.

It is estimated that 10 percent of occupied homes in Slavic Village require repairs to correct code violations. Many homeowners, especially the elderly, simply do not have the financial or physical ability to make repairs. Under the pilot, financial support will be sought through foundations and other organizations to help an estimated 170 homeowners in the target area make needed repairs to bring their properties up to code and protect their condition and value. This will be coupled with code enforcement action to ensure that homeowners follow through with the needed repairs.

Pilot partners with Slavic Village development for this portion of the initiative will be the city of Cleveland, foundations, and neighborhood housing agencies.

Approximately 25 percent of homeowners in the community—about 266 within the target area—are believed to require some type of loan modification, either because they are in serious default their mortgages are underwater, or they have high-risk loans. Under the pilot, these homeowners will receive loan modification assistance. This assistance will come through neighborhood housing agencies and mortgage servicers.

A Vision for the Future
In many ways, the vision for the future of Slavic Village is to return to its not-so-distant past. In the 1990s, it was a thriving blue-collar community. Its population was growing even as other neighborhoods in the city were declining. It offered affordable and well-maintained housing, safe neighborhoods, and a strong sense of community. Its anchors were its churches, schools, senior centers, recreation facilities, and other amenities. It provided good public transportation and close proximity to downtown Cleveland. Its restaurants, bakeries, art studios, markets, and other small businesses were a destination for residents from surrounding communities. Its streets bustled with life as children rode bikes, families took walks, and neighbors looked out for one another.

In every sense it was, and still is, a community. Despite its challenges, Slavic Village’s civic leaders, residents, and businesses remain committed to restoring their community’s former quality of life and building a bright future both for current residents and those yet to come. A pilot for community revitalization could not find a more worthy testing ground.

The project bears watching, as its success could be replicated in neighborhoods and communities across the country. The key is simultaneously addressing existing inventories of neglected and low-value properties that drag down property values, providing assistance to existing homeowners in distress, and protecting and restoring habitable properties to attract new home buyers and spur a housing recovery.

Robert Klein is founder and chairman of Safeguard Properties, the largest privately held mortgage field service company in the country Since founding Safeguard in 1990, Klein has been an industry advocate to advance best practices.

To view the online article, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with nearly 1,000 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

Safeguard Announces Training Partnership with AACE

Posted on September 13, 2018October 29, 2018 by Safeguard

Safeguard Properties Announces Training Partnership with?American Association of Code Enforcement (AACE)

Membership to receive free training and certification Webinar

Valley View, OH, April 12, 2011 ? Safeguard Properties today announced a strategic partnership with the American Association of Code Enforcement (AACE) to offer a training and certification program free of charge to code enforcement officials nationally.

Code enforcement officials will receive 1.0 continuing education units (CEUs) for participating in the program, conducted via an online, on-demand Webinar platform, the first to be offered by a mortgage field service company.? Code enforcement officials may begin signing up for the training immediately.??

Webinar content and training materials were developed by the Community Initiatives Department of Safeguard Properties in consultation with code enforcement officials across the country.? AACE and Safeguard will serve as co-hosts to present the seminars to AACE?s membership.

?Cities across the country have been in the grips of a housing crisis for years, and the need has never been greater for trained and qualified code officers,? said Robert Klein, founder and chairman of Safeguard.? ?AACE has been a tireless advocate to support the code enforcement profession, and we are honored to partner with them to help their members meet and maintain their professional certification requirements and to help ease the financial burden of municipalities.?

?The partnership with Safeguard is an invaluable service to our membership,? said Sherri Johnston, AACE president.? ?Robert Klein and Safeguard were the first to reach out to the code enforcement community to foster collaboration on behalf of the mortgage industry.? Their initiative to create and offer this program for our membership is further demonstration of their commitment to share best practices that benefit code officials, municipalities and the mortgage industry alike.??

The training program provides an overview of best practices pertaining to property preservation, as well as tools and resources readily available to assist code officials with their day-to-day responsibilities of maintaining the integrity of properties in their communities.

Code enforcement officials may register for the Webinar by going to https://safeguardproperties.com/Municipalities/webinar.
?
About AACE?
?The American Association of Code Enforcement, founded in 1988, is a national nonprofit association representing the profession of code enforcement, whose mission is to educate, elevate and improve the profession.? AACE is the internationally recognized leader in the profession of code enforcement.? Since its inception, it has become the premier association to advance the code compliance profession through its certification program, education, training and enforcement.? Website: www.aace1.com.

About Safeguard??
Safeguard Properties is the largest privately held mortgage field services company in the U.S.? Founded in 1990, and headquartered in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for banks, mortgage companies, investors and other financial institutions.? Safeguard employs approximately 850 people, plus a network of thousands of contractors nationwide.? Website:? www.safeguardproperties.com.

Safeguard Properties Announces Four Executive and Management Appointments

Posted on September 13, 2018October 29, 2018 by Safeguard

Safeguard Properties Announces? Four Executive and Management Appointments

Valley View, OH, March 24, 2011 ? Safeguard Properties announced the following appointments to its executive and management teams:

Michael Greenbaum, vice president, REO.? Greenbaum was appointed to this newly created executive position to lead all aspects of Safeguard?s REO service line (post-foreclosure bank-owned properties).? Prior to joining Safeguard, he held senior management and executive positions with Erico, Accel, Inc., and McMaster-Carr.? Greenbaum is a distinguished graduate of West Point (U.S. Military Academy) and served in the U.S. Army, Ordinance Branch, specializing in supply chain management.

Apryl Seide, general counsel.? As a member of the executive team, Seide directs Safeguard?s internal and external legal functions.? She joined Safeguard from Applied Industrial Technologies and previously was in professional practice with Baker & Hostetler LLP.? Seide earned a J.D. from Cleveland Marshall College of Law and a B.S. in Business Administration (accounting) from John Carroll University.

Jennifer Anspach, director of finance and accounting.? Anspach joined Safeguard two years ago as accounts receivable manager.? Before joining Safeguard, she was director of sales audit for OfficeMax.? She earned a B.S. in Business Administration from Youngstown State University.?

Russ Klein, director of quality control.? In this newly created management position, Klein leads quality control efforts across all service lines.? He has held positions in operations, process improvement and technology at American Greetings, Diamond Management and Technology Consulting, and JP Morgan Chase.? Klein earned an M.B.A. from the University of Michigan and a B.S. in Business Administration from Washington University.

About Safeguard

Safeguard Properties is the largest privately held mortgage field services company in the U.S.? Founded in 1990 and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage service companies, lenders, investors and other financial institutions.? Safeguard employs nearly 850 people, in addition to a network of thousands of contractors nationally.? Website:?? www.safeguardproperties.com <https://safeguardproperties.com/> .

Media contact: Diane Roman Fusco, director of public relations, 800-852-8306, ext. 1213
diane.fusco@s.safeguardproperties.com

Safeguard Properties Teams with Brandon Kirkham

Posted on September 13, 2018October 29, 2018 by Safeguard

Safeguard Properties Teams with Brandon Kirkham to Launch Compliance Connections

Plano, TX ? January 20, 2011 ? Safeguard Properties and default servicing industry veteran Brandon Kirkham today announced the launch of Compliance Connections.? The newly formed company, a partnership with Safeguard Properties, helps relevant parties comply with civil code requirements by connecting them through a case management platform that provides end to end solvency for code violations.

Kirkham will hold the position of president with Compliance Connections.

Compliance Connections offers a single web-based portal where servicers can connect directly with municipalities across the country to address code enforcement issues quickly and efficiently. Code violation notices are electronically delivered to the servicer, which substantially reduces notification delays associated with certified mail and property posting, saving time and money and preserving the value of real estate assets and the communities in which they are located.

The Compliance Connections platform provides loan servicers, code enforcement officers and others involved in the code violation process a secure workflow management system to track violations. The central, Web-based location offers code enforcement officers the ability to communicate, upload documents, manage tasks and review the status of a code violation.

“The response we have received so far from code enforcement officers and servicers has been fantastic.? Compliance Connections vastly improves the ability of servicers and municipalities to handle growing volumes of properties.? It offers an easier, more efficient way to delivering code violations and manage the communication and workflow to abate them more quickly,? said Kirkham.

The servicing platform utilizes .Net technology and leverages the power of multiple databases to quickly match the servicer with the code violation. The system automatically notifies the specific servicer contact having the authority and ability to resolve the code violation.? Servicers no longer have to wait for mailed violations to be routed through their organizations.

?In my 18 years of default servicing and REO management, code compliance has always been the greatest challenge,? said Kirkham.? ?Safeguard Properties is the ideal partner for this venture because of its industry leadership and collaboration to uphold property values and protect and preserve neighborhoods.?

Alan Jaffa, Safeguard CEO added, ?Safeguard?s founder and chairman Robert Klein has been an industry leader to find solutions to the challenges of code enforcement and compliance.? Safeguard is excited to enter into the Compliance Connections partnership with Brandon.? His extensive default management and REO servicing experience, coupled with his ability to deploy technology-assisted solutions will assure that Compliance Connections makes a positive difference in communities across the country.?

About Compliance Connections

Compliance Connections, headquartered in Plano, Texas, provides technology assisted solutions and fulfillment services in the areas of code violation and compliance. Web site:? www.complianceconnections.com.

About Safeguard

Safeguard Properties, headquartered in Valley View, Ohio, is the largest privately held mortgage field services company in the U.S.? Founded in 1990, the company inspects and maintains defaulted and foreclosed properties for banks, mortgage service companies, investors and other financial institutions.? The company employs approximately 825 people, plus a network of more than 10,000 contractors throughout the country. Web site: www.safeguardproperties.com.

Media contacts:?

Brandon Kirkham, president, Compliance Connections, 972-212-7223, bkirkham@complianceconnections.com.

Diane Roman Fusco, director of public relations, Safeguard Properties, 800-852-8306, ext. 1213, diane.fusco@s.safeguardproperties.com.

Housing Wire Article

Posted on September 13, 2018October 29, 2018 by Safeguard

Robert Klein, founder and chairman of Safeguard Properties, was featured in the “Fortune Telling” segment of the January 2011 edition of Housing Wire.

To view this segment in its entirety, please click here.

Boots on the Ground Collaboration

Posted on September 13, 2018October 29, 2018 by Safeguard

Robert Klein, founder and chairman of Safeguard Properties, was featured in the Mortgage Servicing News article, titled Industry Focus: Boots on the Ground Collaboration.

Industry Focus: Boots on the Ground Collaboration

The crisis has turned field service providers?often called the servicers? boots on the ground?into a primary liaison that is helping improve a crucial dialogue between the servicing industry, local code enforcement officials and foreclosure prevention entities nationwide.

Industry veteran Robert Klein, Safeguard Properties? founder and chairman of the board, told this publication that given millions of vacant homes nationwide it is going to be ?very, very difficult? to ensure these properties are properly maintained and do not cause blight for their communities. It is their biggest responsibility going forward as the number of foreclosures and real estate owned inventory creeps up.

What is critical at present ?and will be even more critical in the future? is to open new lines of communication between lender-servicers and local communities where these distressed properties are located, a practice national field servicers like Safeguard came to develop over the years. It means cooperating with local REO code enforcement officials whose job is to ensure servicers comply with county, state and federal requirements.

Klein says the sooner everyone realizes that when it comes to REOs field servicers are the main point of contact for servicers, the better.

Field servicers are the boots on the ground, but so are the local code enforcement officials. ?So there are two types of boots on the ground, and if we work together and we keep the dialogue open, it?s going to help solve the problem.?

Years of working experience, Klein says, have shown that having local code enforcement officers communicate with field inspectors who regularly inquire whether the grass is being cut and everything is okay with the neighbor?s house, for example, always helps improve both maintenance results and the servicers? bottom line.

If embraced by servicing shops large and small in a ?that is how things should be done? fashion, this approach can positively change the dynamic of the field servicing industry.

This ?on the ground? effort, which may not have been very popular a decade ago, has naturally evolved because of the crisis. It is the way into the future that already has many supporters.

Over the past few years more intensive communication between the two parties has helped open the dialogue and educate code enforcement officers about the role of field servicers. Catering to that need Safeguard established a code enforcement department dedicated to establishing open dialogue and long term relationships with code enforcement departments around the country.

Until the situation stabilizes everyone?s efforts are focused on keeping people in their homes.

?We don?t know what the end result will be for this foreclosure crisis,? Klein says.

?Our role is to keep a lid on it, make sure vacant properties don?t deteriorate.?

And among others, that is the goal of code enforcement officials as well.

Klein, who over the years built a so far very successful field services firm, finds the most efficient, market tested strategy in dealing with REO management challenges is to establish a proactive working relationship with the local communities, and for a good reason, because local officials do not always understand the role of servicers and field servicers.

?Our job is to avoid or correct the problems,? he says.

So while all servicers tend to apply the same property management practices on the ground, what makes a difference is whether they manage to keep open the lines of communication.

It helps if when problems arise code enforcement officials know that their primary point of contact is the field servicer.

?The biggest problem code enforcement officials have had over the years is that they did not know who to call when they had a problem.?

However, only mutual interest can keep open that kind of dialogue and collaboration. It took a major economic crisis to facilitate the interaction.

If field servicers are by design interested in communicating with local code enforcement officers, the crisis created an equally strong incentive for these entities.

According to Klein for years it used to be ?us against them.?

Now the attitude is, ?Let?s work together. Let?s see what can we do together,? which is part of the solution. ?We?re both there to accomplish the same thing, save these neighborhoods.?

In his opinion the biggest step towards solving the REO inventory problem is an efficient partnership between field service providers with servicers and other entities.

?We don?t have the solution yet, because the problem is way too big, but at least we?re on our way to putting our heads together and brainstorming to find a solution,? he says. ?Servicers rely on us to keep that dialogue open. I think that?s the biggest thing that has happened in the past year, year and a half.?

In 2011 his hope is to see that close collaboration intensify even more at the state level since many REO management issues are affected by state-level legislation.

For example, it can take anywhere from 18 to 19 months to foreclose on a vacant property ?and allow the servicer to take some action on the property.?

And if in the cases where properties in foreclosure are occupied that extension ?is a good thing,? he agrees.

In such cases everything should be done to keep the family in the home. But since it takes as long and longer?sometimes two to three years to foreclose on a vacant property in some judiciary states?it means that servicers? hands are tied.

It is a well-known fact that servicers cannot properly maintain, repair on a regular basis, or otherwise manage their preservation so they are ready for sale when a buyer shows at the door, unless and until the foreclosure process is closed.

It also means most probably the property will deteriorate beyond the repair point by the time the paperwork has gone through the proper court channels and is officially under the care of the lender-servicer.

Especially vacant REO management is a daunting task.

Klein is one of many in the industry who see benefits in promoting a speedier process either to ensure the foreclosure process of a vacant property goes through, or to reach an agreement with the homeowner so they continue to reside in the property so it does not turn into blight.

The only way to make the management of foreclosures and real estate owned properties efficient is to give servicers legal power to deal with related problems sooner rather than later.

Klein is optimistic that going forward it is not going to be the same old.

?We?re finding new ways of doing things that are part of the solution? including new legislation that aims to speed up the vacant property foreclosure process.

He expects the new ?cooperative partnership? between field servicers and code enforcement officials needs to further develop in the future. And there is promise for positive change in the fact that the field services industry at large is making efforts to expand this open dialogue and collectively moving to the same direction.

To view the online article, please click here.

DSNews Article Preserve and Protect

Posted on September 13, 2018October 4, 2018 by Safeguard

Alan Jaffa, CEO of Safeguard Properties, contributed an article to DSNews titled, Preserve and Protect.

Preserve and Protect
By: Alan Jaffa, CEO of Safeguard Properties 11/01/2010

Instituting Proper Winterization Procedures Will Help Prevent Water and Ice Damage from Flooding the Budget and Leaving Your Company in the Cold

Ask any field services expert, and he or she will tell you: When the mercury dips, winterization issues rise in unoccupied homes. One of the most costly problems to fix?and the least expensive to prevent?is water damage that results from frozen pipes in vacant properties. Yet every winter season, millions of dollars are spent to repair and replace walls, ceilings, foundations, floors, pipes, water tanks, heating systems, and plumbing fixtures that have been broken or ruined by water and ice.

Even the most carefully performed winterization can miss a minor plumbing defect that deteriorates under freezing temperatures and causes major water damage. However, the vast majority of winterization damage results from carelessness or improper procedures.

For these reasons, investing in recruitment, training, and certification of qualified winterization contractors, as well as ongoing quality control procedures and communications, is critical to prevent serious water and freeze damage and minimize costly repairs to properties.

IDENTIFYING THE RIGHT SYSTEM

Homes have vastly different plumbing and heating systems depending on age, type, and climate in which they are located. Identifying the proper system and following the correct procedure for each kind of system is the most important first step, because it will prevent the vast majority of winterization errors.

The most common heating systems include dry, steam, and radiant heat. While freeze damage can occur with all three types, typically the most expensive problems occur with radiant systems. Radiant systems utilize loops through which hot water passes. A qualified contractor should drain all loops as well as the boiler used to heat the water. If any of these loops contains moisture, freeze damage will occur.

Additionally, radiant systems are becoming more common in higher-end homes to heat floors; thus, if freeze damage occurs, repairing the system may require tearing up floors to reach the pipes.

To address complex issues and the multitude of situations that can occur with each system, it is critical that winterization contractors be experienced and licensed and that they have licensed plumbers on call to effectively address any issues that may arise in the field.

ADDRESSING THE WATER SOURCE

Ensuring that a water source is turned off and will remain off is critical in vacant properties, where weeks may pass between inspections and undetected water damage could be significant. In addition to flooding basements, frozen and burst water pipes can turn a home into a virtual ?ice castle? that can cost tens of thousands of dollars to remediate and repair.

Whether a property?s water source is a city line, private well system, shared well system, or any other type, the water must be turned off at its source. Contractors then will take additional steps to prevent water from entering the house even if the water source is turned back on in error or if a shut-off malfunctions.

One precaution is to install a ?zip tie? fastener to the main shut-off valve to prevent it from being turned on. For additional reinforcement, a contractor may install a cast-iron ?nipple? that threads into the water meter connection. Zip ties cost pennies, and a nipple costs only a dollar. They take only a few minutes to install and are critical to preventing water from entering a property and causing damage.

It is important to note that some cities prohibit contractors from touching a home?s water meter. Therefore, property preservation companies must maintain a database of those municipalities and advise contractors accordingly. Property preservation companies also must communicate with those cities to discuss alternative steps that may be taken to ensure water is effectively cut off from a property.

THE CHALLENGE OF ADJOINING UNITS

Condominiums pose a particular winterization challenge because they share walls, floors, and ceilings with other units. Failure to winterize a unit properly not only can damage the targeted unit but also adjoining units that may be occupied. The cost of inconvenience and damages to occupied and furnished adjoining units can be significant.

For this reason, the preferred alternative to protect a condominium in winter months is to leave the utilities on and maintain sufficient heat to prevent pipes from freezing. Because utilities may be shared or utility charges built into condominium fees, it is often necessary to coordinate this process with the management of a condominium association.

WINTERIZING, REWINTERIZING, AND DEWINTERIZING

After the water has been turned off, it is still present in the traps and bends of plumbing as well as in boilers. Any standing water, even a trace amount, can expand and crack fixtures in freezing temperatures, causing serious and expensive repairs. To ensure a winterization is performed completely and accurately, contractors must follow a step-by-step process (see sidebar on Page 52), utilizing a winterization checklist, and must verify each step with photo documentation.

After a winterization, the plumbing must be dewinterized carefully, so systems can be inspected and restored for a prospective buyer. In many cases, a property will be dewinterized and rewinterized numerous times before it eventually transfers to a new owner. Preferably, the contractor that performed the winterization also will perform the dewinterization to check for tampering, age-related problems, and other issues.

In a dewinterization, contractors follow a similar systematic procedure to a winterization. The process begins with air-pressure testing; then the water is slowly restored. The contractor waits about 45 minutes and continuously inspects the property to check for any water leaks.

Systems can become compromised and seriously damaged when someone without proper knowledge or training enters the property and attempts to restore the plumbing system. This can happen, for example, in REO properties with a prospective purchaser and an agent who may not be experienced in winterization procedures.

Effective communications between property preservation companies and real estate brokers are critical to make sure that dewinterization and rewinterization procedures are followed carefully and the integrity of the plumbing system is maintained.

TRAINING, CERTIFICATION, AND QUALITY CONTROL

Property preservation companies should take great care in recruiting and training qualified contractors to perform winterizations and providing ongoing support and tools to maintain the highest quality standards.

Winterization contractors must demonstrate that they have sufficient experience with plumbing and heating systems and have quality control procedures in place for the work they perform. To become certified, they must undergo a series of training modules through their property preservation companies, often taken online.

Contractors also are taken into the field to perform practicals with a quality control field representative. Even after a contractor is certified, quality control representatives continue to conduct random checks of their work to be sure that winterizations are performed consistently at the highest quality.

It is important that contractors have tools and resources available to them to ensure that they perform winterizations consistently and accurately. In many circumstances, contractors are working in cold weather, unheated homes, and often wet or damp surroundings. Tools such as an automated checklist help contractors perform more effectively. Contractors utilize laptops in the field to access the checklist, which opens tasks automatically and requires the contractor to verify completion of each step in succession before continuing to the next step.

Contractors also must have access to call-in resources to address unusual circumstances that occur in the field. They also should have ready access to manufacturers? information to address any unique characteristics of a particular system.

In a housing market where vacant properties sit for longer periods of time in cold climates, proper winterization measures are the best investment to protect the value and integrity of a property. Remediating and repairing a home damaged by ice and water can cost a bundle, which means undertaking the proper steps to prevent the damage from occurring in the first place is a sure way to put the freeze on surplus fees.

8-POINT WINTERIZATION PROCESS

While specific tasks may vary depending on the type of system, in general, the winterization process follows these standard steps.

1. Disconnecting the Water Supply ? Water is turned off at the curb or other source. A zip tie is installed on the main shut-off valve, the water meter is disconnected, and the main water line plugged.

2. Draining the System ? Gas or electric to the water heater is turned off. The water heater is drained. If present, wells and holding tanks are drained, and electric to the well pump is disconnected. All toilet tanks and bowls are drained.

3. Blowing the Lines ? Faucets and valves are closed. A compressor is attached, and pressure is built to 35 PSI. One faucet valve at a time is opened?first hot, then cold. The contractor must verify whether water or air came out of valves and faucets and report whether all water has been removed from the system.

4. Pressure Testing the System ? All water must be drained from the system. Faucets and valves are closed and pressure is built to 35 PSI. The contractor must report whether pressure held for 30 minutes. If the system fails to hold pressure, the contractor must document the reason for the failure.

5. Adding Anti-Freeze ? Anti-freeze is added to all toilets, both the bowl and the tank. It is added to all sink traps, shower and tub traps, floor drains, and dishwasher drains.

6. Posting Stickers and Notices ? Winterization notification stickers are applied to toilets, showers, tubs, water heater, water meter, dishwasher, and all sinks. Additionally, toilet wrap is installed on all toilets to further ensure they are not used. Notices are posted at the entryways of the home advising anyone entering that the property has been winterized and warning against the use of any plumbing fixtures.

7. Addressing Radiant or Steam Heat Systems ? If a property has radiant or steam heat, in addition to the steps above, the contractor must drain the boiler, loosen bleeder pins to allow draining, drain the expansion tank, blow heating loops, pressure test the heating system, and apply a winterization sticker to the boiler.

8. Making On-Site Notifications ? Contractors must call from the site if the property has a fire-suppression system, a lawn sprinkler system, or the presence of unusual circumstances. In these cases, contractors will follow additional procedures.

To view the online article, please click here