Page 267 – Safeguard Properties

Kathy Cogan Explains how Safeguard’s Management Training Delivers Results

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

On August 1, MortgageOrb published an article authored by Safeguard’s Kathy Cogan, assistance vice president of account management, titled Safeguard Properties’ Management Training Program Delivers Results.

Safeguard Properties’ Management Training Program Delivers Results

Successful companies are good at not only hiring talent but also developing strong employees into effective leaders. According to the American Society of Training and Development, U.S. businesses spend more than $170 billion on leadership-based programs annually.

But in little-known industries, such as mortgage field services and property preservation, few, if any, outside programs offer industry-specific courses to help build the technical skills and field knowledge that employees need as part of their leadership development. As a result, these industries must supplement leadership development with creative alternatives.

One alternative is a concept called rotational training. In a rotational training program, promising leadership candidates learn a business hands-on by working in virtually every department of the company. They cycle through a process that allows them to experience how business decisions affect different departments within the company, and they develop a better understanding of the industry as a whole.

Safeguard Properties’ rotational training, called the Management Training (MT) program, recently celebrated its 10th anniversary. Since the program’s inception, many leaders have emerged to serve as role models for new leaders at all levels, and to support the company’s growth and expansion.

The Concept

In 2003, Safeguard was a 13-year-old company that was consistently growing and hiring. Typically, new employees would receive a company overview and ongoing training related to their departments and positions. But company executives realized it would take these new employees a long time to learn all aspects of the business, and even then, their knowledge would be limited to only things that affected them in their day-to-day job functions.

Safeguard wanted to design a training program that would eliminate departmental silos – a program that helped identify employees’ strengths, groomed them for leadership positions, and provided them with a deep understanding of the company and the field services industry. The company also wanted a program that would give employees a better understanding of the inter-relationships between departments.

For example, potential leaders who work in property preservation and deal with properties in pre-sale need to understand the potential impact their decisions will have on those same properties when they reach the post-foreclosure sale status, or the real-estate owned (REO) stage. Because the foreclosure process can take a long time – sometimes up to two years in certain states – property conditions can deteriorate no matter how well a property is being maintained. A decision not to repair a minor roof leak may become a costly mold issue in REO. An effective leader must understand these issues and guide the client to make the best decisions to uphold property value and condition.

Program Overview

The MT program begins with hiring college graduates and identifying strong candidates to fill positions of influence within Safeguard. The candidates spend a year learning about each department or service line and experiencing all job functions – giving them a better perspective of the company and the field services industry as a whole.

Each department rotation lasts six to 10 weeks, depending on the needs of that department or service line. MT candidates are exposed to extensive department-specific training and must successfully complete all job functions, in addition to participating in special projects and presenting ways to streamline business procedures. The MT candidates must learn how every position functions, how it fits into that department and, ultimately, what role it plays within the company.

Areas of training include property preservation in pre-sale, customer service, vendor management, REO, hazard claims, community initiatives, marketing, quality assurance, client resolution, estimates and repairs, inspections, accounting, and all other departments within Safeguard.

Once the MT candidates complete training, they must perform each job function. This can include updating, customer service or handling client accounts. Before candidates can move to the next job function, they must pass a quality control test performed by Safeguard’s quality assurance team.

Additionally, MT candidates are assigned special projects or asked to analyze best practices and procedures and propose new solutions. They also contribute to Safeguard’s vendor and industry conferences.

Mentoring

MT candidates are assigned a mentor from a committee that manages the program. That committee is made up of executives and members of senior leadership. The mentors offer candidates better perspective on the Safeguard culture and guide them throughout the rotational training process.

MT candidates also function as mentors themselves. Once they complete the program, they become role models to other staff in the departments they join. They provide support and offer guidance to other employees based on the extensive knowledge and experience they gained from participating in the MT program.

Client Interactions

One of the most important aspects of the MT program stems from the core of the Safeguard culture by focusing on the company’s motto, “Customer Service = Resolution.” Each MT candidate is assigned a client to interact with to learn to anticipate their needs and address any challenges.

These interactions take place in one-to-one calls between Safeguard staff and their client counterparts and sometimes during site visits to clients’ offices. The calls ensure that Safeguard personnel stay connected to clients. The calls encourage MT candidates to identify client issues and suggest solutions. They learn first-hand the value of good customer service and the role it plays in Safeguard’s success.

The MT program has proven to be very successful for Safeguard for the past 10 years and continues to evolve to support the company’s rapid growth. Today, 15 leaders who have graduated from the program serve in key management roles to direct projects, analyze business procedures, build relationships with clients and provide guidance for other employees. The program will remain one of the company’s most valuable training resources.

Kathy Cogan is assistant vice president of account management for Safeguard Properties, the nation’s largest mortgage field service company. She also is a member of Safeguard’s inaugural Management Training (MT) class and serves on the MT committee.

To view the online article, please click here.

About Safeguard
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

Jennifer Jozity Links Technology with Property Inspections and Risk

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

In the August issue of Mortgage Banking Magazine, Safeguard’s Jennifer Jozity, assistant vice president of inspection services, authored an article titled Wiring the Business of Property Inspections.

WIRING THE BUSINESS OF PROPERTY INSPECTIONS

One of the most visible flashpoints that increases the potential for risk is vacant defaulted and foreclosed homes that raise public concerns in neighborhoods and communities across the country.

Each month, Safeguard Properties performs occupancy inspections on nearly 2 million defaulted properties nationally. These are properties for which mortgage payments are more than 45 days late.

The sole purpose of the inspection is to verify the occupancy status and condition of the property, and report that information to the servicer.

On average, Safeguard’s internal records show that 15 percent to 20 percent of defaulted properties for which the company performs occupancy inspections will eventually be found vacant or abandoned by their owners.

Similarly, a June report by Irvine, California–based RealtyTrac Inc. found that approximately 20 percent of all U.S. properties in the foreclosure process had been vacated by owners prior to the foreclosure sale.

Mortgage companies are in a classic Catch-22 situation relative to vacant properties in their mortgage portfolios that have been abandoned by owners but have not gone through the foreclosure process. Failure to identify and secure abandoned properties in a timely manner can expose these properties to vandalism, damages and other events that can contribute to deterioration in condition and value. In many municipalities, servicers also are subject to severe fines and penalties for failure to protect vacant properties in their portfolios.

On the other hand, securing a defaulted property in error, believing it to be vacant, can expose a mortgage servicer, its field service vendor and the contractor performing services to potentially significant financial and legal liability, not to mention reputational risk.

To reduce these risks, Safeguard Properties designed and built its own INSPI^® Mobile system for use by its inspectors in the field. It works with any mobile platform an inspector chooses—a tablet, iPhone^®, iPad^® or Android^TM device.

The best way to demonstrate some of the risk-reduction benefits of Safeguard’s mobile application is to follow two examples in action.

Identifying a vacancy
Our first inspector is Dave. At the start of his day, he grabs his iPhone, uploads his work orders from Safeguard and uses the mobile application to prioritize his route based on the due dates, urgency and other factors identified in the system. He uses the GPS embedded in the system to plan the most efficient route.

Dave visits a brick ranch-style home. He has inspected it before, and it was occupied. Today he observes that the lawn isn’t mowed. Newspapers are piled on the porch. The utilities are turned off. A neighbor tells Dave the owners moved out a few weeks ago.

A comprehensive script built into the system prompts Dave through the process.

When he reports the vacancy, a special alert appears on-screen. It lets Dave know that the vacancy status requires additional information and additional photo documentation to support his observation. It reminds Dave to affix a vacancy notice sticker with Safeguard point-of-contact information for code enforcement officers, real estate agents or others who may visit the property.

Dave uses the embedded camera feature to snap the required photos and tag them with proper descriptions. He immediately transmits his report to Safeguard from the field. The work order is reviewed, the mortgage servicer is notified of the vacancy and orders are set in motion to secure the property.

Not only was this property secured two days sooner because of the immediate property report sent from the field, but the system ensured that Dave thoroughly documented evidence of vacancy before a property preservation contractor would be sent to the property to confirm the inspector’s findings and take steps to secure the property.

Change in property status
The second inspector we want to tag along with is Joe, who is midway through today’s inspection route. Throughout his day, at the request of the mortgage servicing client, when Joe visits an occupied property he leaves a discreet envelope that includes a contact card from the servicer as part of its defaulted borrower outreach. The card provides a phone number for the homeowner to call to discuss payment issues and seek assistance.

While Joe is on his route, the mortgage servicer sends Safeguard an update that the homeowner of one of the properties on Joe’s inspection list has filed for bankruptcy. The bankruptcy status means the servicer can no longer attempt to make contact with the homeowner.

Through the mobile application, Joe receives an immediate status update that tells him only “no contact” inspections are to be conducted at this property. He should not leave a contact envelope. Joe is able to comply immediately with the updated requirement.

The mobile application immediately notifies an inspector of any property status update that can either change the type of inspection he performs or cancel it altogether.

In addition to a notice of bankruptcy, updates are made when a loan becomes current and the homeowner no longer is in default, when a property is conveyed or sold to a third party or when a homeowner enters into a loss-prevention program with his or her mortgage company.

Built-in quality and protection
Beyond ensuring that inspections are thorough and that inspectors proceed accordingly, depending on the most current status of the property, the INSPI Mobile system builds quality and protection into every step of the inspections process.

Because the mobile system was built by Safeguard, it is fully integrated into the company’s internal system, providing access to property information for verification and accuracy, with embedded security and firewalls to protect the security of data.

This is especially important to help ensure that inspectors are at the correct property location. Especially in rural areas, property addresses are not always obvious, and it is imperative that inspectors find the right property. The mobile system helps them do that.

If an inspector, for example, reports that he is at a blue, vinyl-sided colonial, the system will immediately send an alert if the last inspections report showed that the property was a white bungalow. The inspector can use the information in real time to identify the correct property.

Safeguard’s internal system stores every bit of data history on a property. It stores the color, siding material and property style, as well as the number of garages a home has and whether out-buildings such as sheds and barns are present.

It prompts inspectors to identify and report broken windows and other security breaches so that these can be remedied immediately. When clients have special requirements for photos and other documentation, the system ensures they are followed.

Beyond using data to improve the quality and accuracy of inspections, Safeguard mines the data gathered from every inspection report to identify and predict trends and deploy resources more efficiently. We also provide data to our clients to assist with their property evaluation, management and disposition strategies. For example, data may help identify a need to expand an inspections network in a particular area or to help a mortgage servicer predict where larger numbers of mortgage defaults may occur.

In an ever-growing mobile society, virtually every business is becoming an eBusiness. The mortgage field services industry is no exception.

As we continue to view ourselves that way, leveraging automation, mobile technologies and other applications will ensure that our inspectors and contractors in the field hold one of the most effective tools to minimize property risk right in the palm of their hands.

Jennifer Jozity is assistant vice president of inspection services at Safeguard Properties, Valley View, Ohio. She can be reached at jennifer.jozity@s.safeguardproperties.com.

To view the article in PDF, please click here.

Safeguard Partners with Habitat and BBC to Revitalize Colfax Road

Posted on September 13, 2018October 3, 2018 by Safeguard

On July 7, several media sources reported on the humanitarian efforts of Habitat for Humanity, Safeguard Properties and Burten, Bell, Carr Development Corporation. Following is a story from newsnet5.com titled Habitat for Humanity’s Community Revitalization on Colfax Road.

Habitat for Humanity’s community revitalization on Colfax Road

CLEVELAND – More than 100 volunteers from around the country came together on Sunday, July 7 for an unprecedented day of community revitalization on Colfax Road in Cleveland.

Greater Cleveland Habitat for Humanity partnered with Safeguard Properties and Burten, Bell, Carr Development Corporation to rehab vacant homes for new homeowners, help with exterior home repairs for existing residents, remove yard debris and make landscaping improvements.

“We really have an opportunity to make a noticeable difference in a short period of time on the street,” said Greater Cleveland Habitat for Humanity executive director John Habat.

Resident Ernest Smith had new steps installed on his back porch.

“They call it the forgotten triangle but it seems to be that we’re not totally forgotten because somebody remembered this area and their doing what they can to to revitalize it,” said Smith.

Safeguard Properties is the largest mortgage field services company in the U.S., headquartered in Valley View, Ohio. Safeguard employs approximately 1,700 people, in addition to a network of thousands of vendors nationally.

“Doing work on a property where people live and making lives better for them is absolutely, it fits right in with what we do,” said Safeguard Properties founder and chairman Robert Klein.

Resident Sharon Owens was born in her Colfax Road home. She raised her children and grandchildren there.

Owens loved to garden but had to have part of her right leg amputated in February due to an infection.

“It’s been a struggle ever since because I’ve always been a person that’s real active in the neighborhood and got up and did things. I can’t do it now,” said Sharon.

On Sunday, volunteers planted flowers and mulch in Sharon’s yard. She was grateful for the generosity of others.

“I’ve been here all my life and I really feel happy here,” said Owens.

Of the homes on Colfax Road currently owned by Habitat, two are available for occupancy now. Families wishing to become home owners through Habitat are encouraged to submit a home ownership application to GCHFH. Information may be found on www.clevelandhabitat.org

To view the online story, please click here.

Please click here for Habitat for Humanity’s official press release prior to the event.

Additional media coverage:
A Beautification Blitz on Cleveland’s East Side
Habitat for Humanity Hits Colfax Road
Day of Service for Habitat for Humanity

Safeguard Mobile App Produces Nearly-Immediate Results

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

On July 7, Crain’s Cleveland Business published an article titled Property Inspections are Safe, and Instant, with Safeguard’s New Mobile App.

Property inspections are safe, and instant, with Safeguard’s new mobile app
Safeguard produces mobile application that files results almost immediately

In the business of property preservation, a single-day lag between a property inspection and a report of the findings can leave an abandoned home vulnerable to vandalism, animals, insects, and frozen — and burst — pipes.

Using technology it says it has spent millions of dollars to develop, Safeguard Properties in Valley View has ramped up its real-time reporting of property conditions.

More than 70% of the more than 1 million inspections Safeguard contractors perform in any given month now are reported within minutes of the inspections via a mobile app the company has developed; that’s up from roughly 5% of reports submitted via the app this time last year, said George Mehok, Safeguard’s chief information officer.

Safeguard employs contractors across the county to inspect and maintain defaulted and foreclosed properties for lenders, mortgage servicers and other financial institutions.

Introduced after two years of development in late 2011 and modified since then, the mobile app replaces for those contractors who use it the filing of reports on a laptop in the field, or by desktop computer at the end of the day. Instead, they are tapping the touch screen of their smart phones to file reports as they go.

The app also eliminates the need to carry a camera and later connect it to a computer, because it prompts contractors to take images with their smart phones and attaches the images to their reports.

The app, which is compatible with Apple and Android operating systems, requests information real-time as a contractor reports that certain conditions at a property exist. As a result, it helps eliminate the frequency with which contractors might file a report only to realize they need to return to a property because they neglected to inspect or photograph something.

“We have a mobile work force, so this is perfect,” Mr. Mehok said. “A lot of the business is timing.”

The app means inspection results, in most cases, reach clients 24 hours faster than they might have before, Mr. Mehok said, which should translate into better- preserved properties. And it has proven compelling enough to one mortgage servicer that, in the last month, the company started paying to use the app. (A Safeguard spokeswoman wouldn’t identify the company.)

Unlike third-party mobile apps with similar functions, Safeguard’s app is tailored specifically to the property preservation business — some are focused on insurance, for example — and integrates with Safeguard’s internal systems, Mr. Mehok said.

“I’m not aware of another field service company that has its own,” he said.

The move to mobile

Neither is Eric S. Miller.

The use of mobile apps is growing in the property preservation business, but Safeguard — in developing its own app in-house — is on the “front edge” of the trend, said Mr. Miller, executive director of the National Association of Mortgage Field Services Inc., based in Stow.

Most companies, Mr. Miller noted, are using mobile apps developed by third-party providers, or they’re encouraging contractors in the field to sign into their websites using their smart phones.

“I think the ability to get the data in quicker, more real-time … those timeframes will continue to be pressured,” Mr. Miller said. “Better work, faster work, cheaper work, those are your three options. You’re going to see a concerted effort by the industry and by a lot of people to get some type of simplistic web-based service, or you’re going to see them go mobile.”

The nonprofit association itself is developing a mobile app that its member companies, which include Safeguard, can use to stay aware of problem properties, Mr. Miller said.

Safeguard does not yet ask its contractors, which include mom-and-pop businesses and regional companies, to use its mobile app, but the time will come, a spokeswoman said. At present, not every contractor is jumping aboard because many are accustomed to the way they’ve done business, said Jennifer Jozity, assistant vice president of inspections operations.

But those that do use the app should find it to be a more profitable, efficient way of doing business, Mr. Mehok said, and that should ring even truer as the company puts GPS capabilities to work for contractors.

Safeguard’s information technology team is working to set up proximity routing using Google Maps, wherein a contractor would be sent on assignments in an order that’s most efficient to avoid zigzagging around town. It also in recent months started leveraging GPS information, specifically longitude and latitude, so it can better identify when a contractor actually is reporting from — and inspecting — the wrong property.

Tapping the data mine

Safeguard’s IT team has rolled out more than the mobile app.

Using a data warehouse it implemented over the last 12 months, Safeguard is mining its data so it can share with clients when an area has more incidences of a certain type, such as mold or vandalism, and also what the probability of properties becoming vacant is in certain neighborhoods.

“We collect a lot of information that we then give back to our clients,” Mr. Mehok said, citing the 300 million data points collected about properties in any given month.

The data mining also will help Safeguard identify regions where the company needs to improve the quality of its work, executives say. Quality “heat maps” show the company where there may be need for training, corrective action or hiring more contractors, perhaps because deadlines aren’t being met or return visits to properties are more frequent.

The company also rolled out enhancements last month to its order processing system to automate work flow and improve management of its orders. The enhanced system will report to Safeguard’s vice president of operations how long employees spend processing orders, something Safeguard executives say is not intended to be used punitively, but to identify the more productive employees who could train others, Mr. Mehok said.

“Greater efficiencies will allow us to remain a market leader, better serve existing clients and attract new clients, recruit strong and talented employees, and better protect properties in our care,” Safeguard CEO Alan Jaffa said.

To view the online article, please click here.

Safeguard Collaborates with Others to Clean-Up Slavic Village

Posted on September 13, 2018October 3, 2018 by Safeguard

On July 17, Safeguard collaborated with Forest City Enterprises, RIK Enterprises, Neighborhood Progress Inc., Slavic Village Development and the City of Cleveland to help clean up a Slavic Village neighborhood. Newsnet5.com posted an article titled Neighborhood Cleanup in Cleveland’s Slavic Village Continues Despite Heat, detailing the event.

Neighborhood cleanup in Cleveland’s Slavic Village continues despite heat

CLEVELAND – Despite the extreme heat, dozens of volunteers turned out on Wednesday to help clean up a Slavic Village neighborhood.

The effort was arranged by Slavic Village Recovery, LLC, a collaboration between Forest City Enterprises, Safeguard Properties, RIK Enterprises, Neighborhood Progress Inc., Slavic Village Development and the city of Cleveland.

Volunteers from the different entities focused their energy on three-square blocks along Fleet Avenue, from East 53rd Street through East 55th Street.

Clean-up crews began working at 9 a.m. and sweltered through the day picking up trash, landscaping, cutting lawns and tending to boarded-up properties in the area.

Representatives from Slavic Village Recovery told NewsChannel5 they are taking a “holistic approach” to dealing with the issues in the neighborhood – and this cleanup is just the beginning.

“There’s about 2,300 homes and we’re looking at impacting roughly 400 of those houses over the next couple of years,” said project director Jeff Raig. “We’re looking at transforming an entire neighborhood, not just on a house-by-house basis.”

To view the online article, please click here.

Robert Klein Talks Law and Order

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

In the July edition of HousingWire, Robert Klein, founder and chairman of Safeguard Properties authored an article titled Law and Order.

Law and order
Ohio city attracts plaudits for tackling foreclosure blight, but major challenge remains

In many ways, Youngstown, Ohio, serves as a comeback model for similar cities around the country that have lost jobs and population since the industrial decline that began in the late 1970s.

Thanks to forward-thinking leaders who have cultivated a supportive business environment, Youngstown has become one of the most improved economies in the country, according to an analysis by the Brookings Institution. A growing energy market has sparked a manufacturing resurgence. A vibrant technology scene is attracting startup companies, warranting mention by President Barack Obama in his State of the Union address earlier this year. And Youngstown’s downtown is springing back to life as an entertainment destination.

Unfortunately, like other cities across the country, Youngstown has also suffered in the aftermath of the housing crisis, with vacant and abandoned properties straining city resources, hurting neighborhoods and driving out residents. It’s understandable that city leaders would want to take action to preserve neighborhoods, protect the safety of its citizens and help maintain the momentum of economic recovery.

However, their decision to enact what is being viewed as one of the most onerous vacant property ordinances as a solution to the problem may actually do more harm than good. The ordinance has a number of possible ramifications, with three apparent major drawbacks in particular some deem worthy of rumination.

Good Guys Pay, Bad Guys Don’t
The first concerns the fact the ordinance requires the owner of a vacant property to post a cash bond of not less than $10,000 to assure the continued maintenance of the property until it either moves through the foreclosure process and is sold to a new owner, or is demolished. The definition of an owner has been broadened to include the person in title, the entity that holds the mortgage and even authorized agents and vendors of the mortgage company who have direct or indirect control of a property.

Here is the sad irony: Irresponsible owners who let their properties deteriorate in the first place aren’t likely to comply with the ordinance. Code enforcement officers and other officials will waste precious time chasing ghosts, with nothing to show for it.

On the other hand, the vast majority of mortgage companies and their agents who already secure and maintain properties abandoned by homeowners could be penalized by the ordinance and forced to pay, even though their properties aren’t causing problems.

Lienholder Conflict
Second, until mortgage companies take legal title to a property, their rights are limited — even when homeowners abandon properties. Prior to an actual foreclosure sale, banks can only perform services to prevent code violations and protect the collateral value of the property in the absence of an occupant. In other words, the requirements of the Youngstown ordinance will most likely conflict with laws limiting a bank’s rights prior to foreclosure.

The expanded definition of a homeowner in the Youngstown ordinance actually sets up the city for potentially expensive and protracted legal actions. In fact, two years ago, the city of Chicago considered similar language in their ordinance, defining lienholders as homeowners prior to foreclosure. Ultimately, they removed the language after listening to the concerns of the mortgage industry in this regard.

It Doesn’t Fix the Problem
Third and finally, the worst enemy of a vacant property is time, and the Youngstown ordinance seems to do nothing to address this. If the city of Youngstown really wants to protect the condition of vacant properties and make banks responsible, the answer might be to help them take possession more quickly. That requires a change in state law to accelerate vacant properties through foreclosure.

In Ohio, the foreclosure process can take two years or longer, whether the property is occupied or abandoned. Even with the billions of dollars the mortgage industry spends annually across the country to inspect and maintain vacant properties, these homes will deteriorate as they await foreclosure. Many will be vandalized, losing value, becoming neighborhood nuisances and negatively impacting surrounding properties.

When a property is deemed vacant and abandoned, accelerating foreclosure would allow banks to obtain title while the property is still in good condition so that it can be sold and reoccupied more quickly.

For some, accelerated foreclosure is a far better alternative to vacant property ordinances. It can reduce the burden on city code enforcement officials and first responders to address nuisance issues. It can protect the condition and value of vacant properties, especially those in fragile neighborhoods. And, perhaps most importantly, it can help maintain viable housing for families, especially first-time home buyers and lower income people.

Youngstown’s leaders have demonstrated a progressive attitude toward rejuvenating their city. There is a strong argument that says they should continue to lead the way to protect homes and neighborhoods across Ohio by promoting legislation designed to accelerate the foreclosure process for vacant and abandoned properties.

Key Concepts

Mortgage companies and their agents who already secure and maintain abandoned properties could be penalized by a new Youngstown, Ohio, ordinance and forced to pay.
The requirements of the Youngstown ordinance will most likely conflict with laws limiting a bank’s rights prior to foreclosure.
If the city really wants to protect the condition of vacant properties and make banks responsible, the answer might be to help them take possession more quickly.

To view the article PDF, please click here.

Robert Klein Shares Views on Youngstown Foreclosure-Bond Law

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

On July 21, Vindy.com published an article titled Youngstown has Collected $480K, Awaits More with New Foreclosure-Bond Law. In it, Robert Klein, founder and chairman of Safeguard Properties shares his own views on the topic.

Youngstown has collected $480K, awaits more with new foreclosure-bond law

YOUNGSTOWN
A city law, created about four months ago, requiring those filing foreclosures on vacant houses to post a $10,000 cash bond is proving to be an effective way to make sure owners, mostly banks, are more accountable, the city’s neighborhood improvement coordinator says.

The city has collected the bonds from 48 property owners for a total of $480,000, and is working to acquire the $10,000 bonds from 18 other property owners, said Maureen O’Neil, neighborhood improvement coordinator.

If a bank maintains the property, it would receive all but $200 of the $10,000 back once the house is sold. The $200 covers administration fees.

If the house falls into disrepair, the city can use the money for required maintenance or demolition.

Youngstown is only the third city in the country — Springfield, Mass., and Canton are the others — with a foreclosure-bond law, and Canton doesn’t enforce its ordinance, O’Neil said.

Since 2004, about 5,200 houses Youngstown went into foreclosure.

The focus in Youngstown is on properties foreclosed since the beginning of the year, O’Neil said, because they are typically in better condition than older foreclosed structures that already have been stripped of vinyl siding, copper piping and almost everything else.

O’Neil’s office is focused on the 159 houses in foreclosure in the city since January.

It will take time to pursue all of them, and there are additional foreclosures in the city that will make that list grow, O’Neil said.

“It’s a new program and we’re still developing it and seeing what works,” she said. “It’s another tool for code enforcement along with rental property registration, vacant property registration, the property maintenance appeals board and prosecutor hearings. Our focus is compliance and to bring properties up to code.”

However, not everyone supports the foreclosure bonds.

Robert Klein, founder of Safeguard Properties, a Valley View, Ohio, business that is the nation’s largest mortgage field service company, called Youngstown’s law “overblown” and “punitive.”

Safeguard manages about half of the properties on the city’s list of those that have paid the $10,000 cash bonds. The company’s clients include major banks such as JPMorgan Chase & Co., PNC Bank and Bank of America.

Those banks “obviously don’t like it,” Klein said. “One of the issues we’re having is the communities are not talking to the industry. They’re talking at the industry.”

The bond “only puts another wall between the industry and cities,” he said.

Having a $10,000 bond won’t help the situation because irresponsible property owners, he said, aren’t likely to comply while those who secure and maintain properties are forced to pay even though their homes aren’t causing problems.

Klein also suggests the city work toward helping to change state law that would allow banks to take possession of houses through foreclosure faster. That way, banks can obtain title while the property is in good condition and then sell it quicker, he said.

Among the 48 properties in which the owner has paid a $10,000 bond is 555 St. Louis Ave. on the South Side.

The grass is thick in the front of the property, and small trees are growing in the house’s gutters. While this house isn’t in good shape, it’s far from the worst on the street.

Ruth Alli, whose house — which has security cameras on the front porch — is only a vacant lot away from 555 St. Louis, said the house has been vacant for two or three years.

A company came one time to cut the grass, but did only a portion of it, left and have never come back, she said.

“It’s a good neighborhood,” Alli said. “I like it here, but that house [at 555] needs attention, and some of the other houses need to come down.”

In Cornersburg, 3240 and 3432 N. Wendover Circle are both on the $10,000 bond foreclosure list.

Augie and Barbara Angel have lived across the street from 3432 North Wendover since 1979.

Though the house at 3432 is in good shape, the grass is overgrown.

“You still have a responsibility to take care of the home,” Augie said. “There’s a lack of consideration for your neighbors by letting it look bad. We love this neighborhood and we want to stay. We’re trying to maintain our property and to have others not care is terrible

To view the online article, please click here.

Robert Klein Sets Record Straight on Housing Demolition and Community Stabilization

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

On July 15, The Plain Dealer published a blog written by Robert Klein, founder and chairman of Safeguard Properties, titled Setting the Record Straight on Housing Demolition and How it can Stabilize a Community: Letter to the Editor.

Setting the record straight on housing demolition and how it can stabilize a community: letter to the editor

Recovering from the national housing crisis has been and continues to be a long, multistage process. The housing market will play a critical role in the broader economic recovery of our nation.

After implementing new banking regulations and budget cutbacks, lawmakers have turned their attention to repairing the fabric of America: our cities, neighborhoods and small towns. States around the country are making strides toward legislation for fast-tracking foreclosures, and some governments have even instituted statewide vacant property registration guidelines.

On the surface, this subject may seem a lot simpler than other issues Americans have dealt with in the wake of the housing crisis, and while rebuilding America’s communities may not be as complex as crafting the Dodd-Frank bill, it is much more than bricks, mortar and 2×4’s. There is a lack of understanding of the most effective way to implement the revitalization process. I believe it requires a holistic approach with several simultaneous steps, and demolition is a critical starting point.

While many may consider demolition as a last resort, it is in fact a vital step in a comprehensive approach when rehabbing a community. It is impossible to cultivate development and garner interest from prospective home owners, as well as investors, if homes that cannot be saved are still standing. When these properties remain, they become a health and safety hazard for residents and neighboring homes. If the proper steps are not taken to remove a nuisance property, then rehabbing efforts are futile.

There are also several benefits associated with demolition, including stabilizing property values and eliminating older homes that contain dangerous substances such asbestos. Also, many of the materials from demolished properties can be recycled. Cities are now repurposing the lots from demolished homes into green space, parks and playgrounds to cultivate community development. More important, demolition paves the way for salvageable homes to be rehabilitated, allowing for the subsequent steps in the development process. In the aftermath of demolition, we can create these community pulse points, build new houses and neighboring homeowners can preserve their property values and see their neighborhood or small town come back to life.

Unfortunately, there are often challenges in getting the demolition process underway, as the permit process can be both costly and time consuming. This proves that greater education is necessary on the need for demolition and its associated benefits. Dollars from both the Neighborhood Stabilization Program and the Hardest Hit Fund have been dedicated to demolition efforts. Despite this designation, in many states across the country there has been a struggle for communities to get their hands on these funds because of the stigma associated with demolition. If the proper funds are not distributed for demolition efforts, then dollars spent to keep people in their homes and to rehabilitate communities are completely undermined.

We need to educate people on what demolition really is. Demolition is not tearing down your grandmother’s home or the house you grew up in. Houses that need to be demolished are no longer homes at all. They are properties that endanger your community, perpetuate blight and prevent revitalization efforts.

Robert Klein, Cleveland

Klein is the founder and chairman of Safeguard Properties.

To view the online blog, please click here.

Alan Jaffa’s Successes with Company’s Growth

Posted on September 13, 2018October 3, 2018 by Safeguard

How Alan Jaffa took Safeguard Properties from a Start-up to an Industry Leader

Alan Jaffa has been CEO at Safeguard Properties Management, LLC, since 2010. Safeguard Properties is the largest privately held mortgage field services company in the country.

Jaffa learned the business by moving through the ranks of Safeguard, experiencing first-hand virtually every department in the company. He joined the company in 1995 when it was a small start-up with few employees. As a result of a great work ethic and innovation, Jaffa moved up quickly, becoming COO in 2002.

By the time he became CEO in 2010, Safeguard had grown its employee base significantly. Under his leadership, Safeguard completed the acquisition of Bank of America’s field service department. Jaffa took this bold step to protect the company’s leadership position and expand its footprint into the south and west regions of the country where large concentrations of the company’s clients are located.

Under Jaffa’s watch the company has almost doubled its revenue, and he has helped fully integrate the acquired entity with Safeguard within six months after the acquisition.

Aside from a focus on growth, Jaffa ensures that he is a visible leader at Safeguard. He spends at least one day per week at each Safeguard location, maintains an open door policy and hosts monthly “Java with Jaffa” sessions around the company to hear ideas from employees at all levels.

Jaffa also meets weekly with his executive team, monthly with the entire senior management team of directors, and hosts quarterly two-day off-site meetings with the executive and management teams to encourage collaboration, address challenges together, build on best practices and identify new initiatives to maintain a competitive advantage.

These efforts help Safeguard deliver greater efficiencies, track and improve quality, recruit and retain diverse and qualified employees and vendors, forecast trends, and anticipate client needs for new and varied services.

To read this article on sbonline.com, click here.

Robert Klein Among Expert Panelists for Code Compliance at REX

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

On June 3, HousingWire.com published an article titled Saving Property Values in the Wake of Foreclosure. In it, Robert Klein, Safeguard’s founder and chairman is listed as a panelist at the recent Real Estate Expo.

Saving property values in the wake of foreclosure

Asset management firms are in a constant race to preserve local home values through the effective upkeep of vacant properties.

At HousingWire’s Real Estate Expo (REX Annual) on Monday, experts spoke on the subject of “Help Us Save Our Neighborhoods.” The idea behind the discussion was to visit code compliance issues, revealing effective ways to ensure property values are not weighed down by troubled and vacant properties.

Members of the panel included: Robert Klein, chairman of Safeguard Properties; Jim Taylor, senior vice president with Wells FargoHome Mortgage; Kelvin Beene with the City of Fort Worth; Jeannie Fantasia, vice president of SecureView; and Eric Miller, executive director with the National Association of Mortgage Field Services.

Taylor said, “If you look at the REOs we sold last year, on average the customer has not made a payment in 16 months. If that is the case, that customer is really in distress.”

If we cannot help the borrower, we try to find ways to help them move on while attempting to get the house back on the market, Taylor explained. But to do so, the house has to be in the best shape possible.

“We cannot stop the situation but there are ways that we can improve the communication. One of the things that has been a constant is the stigma that is tied to a boarded property,” added Jeannie Fantasia with SecureView.

To stay abreast of how property preservation firms are coming along in preserving home values, Taylor with Safeguard announced the creation of a grading system that will score houses to show how they have progressed from REO to the day the home is sold.

REO homes take longer to get back on the market, so in the process, it is imperative that communication about the home’s status is clear and up-to-date, the panelists suggested.

To view the online article, please click here.