REOMAC Article Field Servicer Strategies to Shorten REO Sales Cycles to Maximize Returns

Nobody knows when the current mortgage crisis will end, but the consensus seems to be that it will continue until the nation?s unemployment rate, which hovers around 10 percent, levels off.

? RealtyTrac? reported that in 2009 a record 2.8 million homes in the U.S. received foreclosure filings, a 21 percent increase over 2008 and 120 percent over 2007.

? The Mortgage Bankers Association predicted that in 2010, home loan originations will decline 40 percent because of higher interest rates and continuing high levels of employment.

Based on these reports, we can conclude that for the foreseeable future, our industry can expect high REO inventories to continue and greater challenges in marketing and maintaining REO properties. Never has the need been stronger for creative strategies and strong collaboration between those of us tasked with helping our clients maximize the return on REO properties.

Outlined below are strategies field servicers should embrace to support brokers in shortening sales cycles and helping clients to realize a reasonable return on their investment.

Deliver ?bang for the buck?

The seller and the prospective REO buyer want the same thing ? a bang for their buck. It?s the broker?s role to decide what investment will make the biggest impact on both sides ? determining the optimal upgrades that will appeal to the widest potential market and also provide a reasonable financial return to the seller.

It is the field servicer?s role to deliver it ? in a timely manner, for the best price, and at the highest quality. That means identifying the right contractors for the job and having a sufficient network of qualified local vendors to meet deadlines. It also means providing a fixed price for the work, with no surprises, documenting all services, and assuring that all work complies with city code requirements and municipal laws.

Field servicers must employ a vigorous quality control process to monitor all aspects of work performed ? schedules, budgets, work quality, and compliance. That process should be made clear to the broker and the client in advance.

Provide ?one stop service?

The broker?s job is to position the property and to target buyers. It isn?t their job to manage repairs or keep track of the maintenance process.

From a property maintenance and repair standpoint, field servicers need to be the interface between the broker, the client and contractors who perform the work. All parties involved need a single point of contact to manage all requests on the client?s behalf related to a particular property, and to address all issues that arise at the property. The field servicer should be that contact.

All parties should receive regular updates about a property?s status. Brokers and clients also should have easy access to all property information around-the-clock, and someone to call with questions.

Go the extra mile

In a highly competitive REO market, even the most effective property enhancement may not be enough to sell a property as fast as everyone would like. Sometimes, it?s the attention to the tiniest details that make the biggest difference.

Good field servicers find ways to add value and make a property stand out to a prospective buyer, to help the buyer envision themselves in their future home.

Ask your field servicer to tell you how they go the extra mile to help enhance the value of your property and make it stand out in a crowded real estate marketplace. In the REO world, time is money, and it is the field servicer?s role to help brokers and their mutual clients save both.

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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 700 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.

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CEO

Alan Jaffa

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

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

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

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

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

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

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Business Development

Carrie Tackett

Business Development Safeguard Properties