Safeguard’s debris-removal policy is as follows:


Interior debris should not be removed pre-sale even if the regional variations allow for it. Contractors should bid this pre-sale and remove per the guidelines on post-sale properties.


Interior and exterior health hazards should not removed pre-sale even if the regional variations allow for it unless they are a potential infestation risk. Items that would be an infestation risk would include raw garbage, feces and dead animals. Items such as paint, chemicals, oil, etc. would not be included as an infestation risk. Contractors should bid non-infestation health hazards pre-sale and remove them per the guidelines on post-sale properties as long as they can be removed/charged by the cubic yard. If the item cannot be removed by the cubic yard, contractors must bid to remove them by item.


Automobiles, boats, motorcycles, recreational vehicles and trailers should not be removed pre-sale. They can be removed post-sale per the guidelines for the auto removal allowable. The auto removal allowable is not included against the maximum allowable for debris removal. However, it is included against the maximum allowable for the property.


Dump receipt information must be submitted by the contractor any time debris or health hazards are removed from a property, even if they were removed per bid. The SPI System creates the dump receipt for the client from this information.


Storage receipts are required any time personal property is stored


A licensed exterminator must perform any exterminations and a photo of the exterminator, with proof of license in the form of receipt from this licensed person must be sent with the bid/contractor’s update/invoice.


Second bids are required whenever a bid is given because we have exceeded the maximum allowable for debris. This does not mean that we order a second bid on per item bids if we are still under the debris maximum allowable.



Mortgagees are to remove exterior debris.  Mortgagees are not to remove interior debris except for 1) debris that constitutes a health or safety hazard, 2) debris that causes the issuance of a code violation which would result in a fine and/or lien if not corrected prior to conveyance to HUD, 3) debris required to be removed as part of an eviction by local law enforcement or crews under the control and direction of local law enforcement where the mortgagee has no control over the timing of removal, and 4) geographic areas identified in Attachment 5.  See the following pages to ascertain those areas having variations of policy on debris removal.


For clarification, examples of health and safety hazards are all poisonous or inflammable materials such as pesticides, household chemicals, solvents, paint, car batteries, car parts, tires, oily water, waxes, antifreeze, pool cleaners; decaying food or other organic matter, dead animals, animal feces; and broken glass.  Mortgagees are further required to check with the local municipality for health and safety hazard requirements.


HUD will not reimburse amounts in excess of the amount listed below for interior and exterior debris removal without prior written approval from the M&M contractor.  A mortgagee may expend up to this amount without M&M contractor approval.


“Before” and “after” photographs are required to support all required debris removal.  Photographs must be dated and indicate property address.  If “before” and “after” photographs are not submitted as documentation of required debris removal, HUD will not reimburse the mortgagee for any costs associated with debris removal. 


Mortgagees must maintain a salvage and dumping fee receipt for each property   in the claim review file. The documentation must include the date, address of the property(s) for which the debris is being dumped, number of yards dumped, and the number and type of appliances (e.g. refrigerators, stoves, dishwashers) being dumped or disposed.  The receipt must indicate the name of the dump to verify that the debris has been disposed of legally.


Mortgagees are required to remove all abandoned vehicles. Removal must be done in accordance with local laws, as applicable.  If an allowable cost is not specified below, contact the M&M contractor.


Hazardous Waste Removal


Most residential properties will have very limited hazardous waste.  Questions regarding   hazardous waste removal procedures should be directed to local health or environmental departments for guidance on removal. Any action required by the municipality must be approved by the M&M contractor.  While checking with the health or environmental source, be sure to seek information relating to approved transportation sources and locations for disposal.

Instructions for Mortgagees Required to Perform all Debris Removal Services

Broom sweeping and dump fees are part of the maximum allowable cost limit for debris removal and are not considered separate services or claimable expenses. Abandoned vehicle removal is not included in the debris removal cost limit and must be performed in accordance with local laws.

No amount over the cubic yard or overall cost limit which does not have prior written approval from the M&M contractor is to be claimed for reimbursement. Mortgagees are reminded that prior written approval is required to claim reimbursement for any amounts that exceed the cost limit. When requesting approval to exceed the debris removal cost limit, the mortgagee must obtain two independent competitive bids. If the mortgagee uses a national field service company, one of the bids may be provided by the field service company. However, the second independent and competitive bid may not be channeled through the field service company, and both bids must be submitted to HUD's designee by the mortgagee.

Under no circumstances may the mortgagee allow field service companies or contractors to process and submit the second bid (or an additional bid if so required) directly to the M&M contractor. This violates the integrity of HUD's requirement for an independent and competitive bid process and is prohibited.

The bids must specify the types and location of the debris and the number of cubic yards. Any additional costs of non-general refuse should be factored into the final bid and clearly indicated for M&M contractor review. All bids should be on the bidder's company letterhead and must include the bidder's name, address, telephone number and the bidder's signature. Upon receipt of the bids, the mortgagee must date stamp them and attach them to a Request to Exceed Cost Limits for P & P (see Attachment 9) which is to identify all other preservation and protection expenses to date so that the M&M contractor will know if and by how much the mortgagee will exceed the maximum allowable cost limit. Any debris removed per local code is also subject to the established cost limits on debris removal.

Bids are required for debris removal only to exceed the allowable cost limit. There may be instances where because of the remote location of the property or for some other reason, the mortgagee may have difficulty in obtaining the required number of bids. Therefore, mortgagees may appeal to M&M contractor in those cases where they encounter difficulties in obtaining estimates. For such cases, the local M&M contractor may accept less than the required number of bids before issuing approval to exceed the limit. All such exceptions shall be provided to the mortgagee in writing. Mortgagees will not be reimbursed for the cost of obtaining bids. Upon receipt of the required bids from the mortgagee, the M&M contractor will do one of the following:

* Notify the mortgagee to accept one of the bids submitted;

* Accept neither bid but secure a bid from a M&M contractor source and notify the mortgagee of the approved cost and vendor. The mortgagee may then either (1) remove the debris via its own source for the approved cost or (2) contract directly with the M&M contractor source for the approved bid amount; or

* Notify the mortgagee to convey the property without removing the debris.

Clean Out of the Interior of the Property (Includes Attic, Basement, and Crawl Spaces)

Clean-outs of the interior of the property must include the removal and proper disposal of debris, including shabby or torn carpet, cracked or torn linoleum; health and safety hazards, including dead animals; and personal effects such as furniture, clothing, dishes and utensils, unless otherwise instructed by local law enforcement during an eviction. Each interior room must be broom cleaned at the time of conveyance. This standard also applies to garages (attached or detached), sheds, barns, utility rooms, and other structures located on the property.

All free?standing appliances such as refrigerators, air conditioners, washers and dryers, etc., and all light fixtures, ceiling fans, mantels, wall mirrors, and fireplace gas logs are to be left in the property. All appliances are to be documented that they are present on the property so that future inspections will show if any of the free?standing appliances are missing. Documentation must be maintained in the mortgagee's review file if appliances are discovered missing on future inspections. Refrigerators and stoves must be cleaned of all organic materials and other debris.

Bug and/or Pest Infestation

If, on the initial inspection, the mortgagee finds the property to be infested with roaches, water bugs, mice, rats, etc., to the extent that clean?out and debris removal cannot be effectively completed, the mortgagee should have the property properly fumigated by a Pest Control Service licensed to conduct such business in the area where the property is located. If no cost limit is provided in the variations to the general requirements, contact the M&M contractor.