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MEMO
#5008: 25-35 Inspections Guideline Requirement - (08/18/03)
Based
on the response
from Leslie Bromer, we will be implementing the
following requirements for all inspections and all clients.
As
you may be aware, different clients have different interpretations
of the HUD guidelines on the reqired time frame for performance
of monthly property inspections (see attached).
Many of
you already know that some clients request that vacant properties
be inspected every 25 to 35 days, and you have completed inspections
per this requirement.
One of
our clients, has already instructed us to complete all monthly
inspections between 25-35 day from the last inspections on
all properties, occupied and vacant.
Based on this requirement, if an inspection is completed before
the 25th day of after the 35th day from the last inspection
date, it is not within compliance and will have to be re-inspected
to assure that the inspection results occur within the prescribed
time frame.
Chase
will begin ordering these inspections with their next download,
which will occur on or about August 19th. Please make certain
that you are paying attention to the due date and not completing
these inspections before the 25th day or after the 35th day.
These
inspection orders will be e-mailed to you with a notice that
the inspections are 25-35 day orders, and you will be given
a specific range of dates within which they need to be completed.
Please
see below FAQs regarding 25-35 day inspections. If you have
any questions, please contact your regional coordinator.
FAQs
about 25-35 Day Inspections
Q:
What is a 25-35 Day Inspection?
A 25-35
day inspection is ordered by our clients in order to fulfill
the requirements set by HUD. Per the HUD guidelines:
ML 2002-10
Attachment 2, Page 1
Property
Inspection Service Requirements and Cost Schedule
When
a mortgage is in default and a payment is not received within
45 days of the due date, and efforts to reach the mortgagor
by telephone or other means within that period have proven
unsuccessful, the mortgagee shall make a visual inspection
of the property to determine occupancy status.
If the
property is occupied, and the mortgagor continues to be in
default, the mortgagee should continue to try to make contact
with the mortgagor or
occupant
each month by telephone or through correspondence. If the
mortgagee is unable to contact the mortgagor or occupant by
any other means, generally, the property must be re-inspected
within 25-35 days of the last inspection or last documented
contact with the mortgagor or occupant. However, some areas
require more frequent inspections as prescribed below.
If it
can be established by other means that the property is occupied,
an inspection is not necessary and will not be reimbursed.
If an inspection is performed on an occupied property, the
cost will only be reimbursed if the mortgagee can provide
adequate documentation to show that the mortgagor or occupant
could not be reached by any other means. This documentation
must be maintained in the mortgagee's claim review file. The
mortgagee must inspect a vacant or abandoned property every
25-35 days,or more frequently as prescribed below, to determine
whether protection and preservation action is necessary.
Q:
How will I know that an inspection is a 25-35 day inspection?
At a glance,
the easiest way to determine if an inspection is a 25-35 day
order is to look at the due date. The original order that
is sent to you via e-mail will state that the inspection is
a 25-35 day order and will give a specific range of dates
within which the inspection must be completed.
Q:
Currently it is SPI's policy to complete all inspections within
7 days. Will I still see the 7-day turnaround time for 25-35
day inspections?
No. Due
to the requirements of the guidelines, you will see inspections
with various due dates, as the due date depends on when the
last inspection was completed.
Q:
Will I ever receive an inspection that is due less than 5
days from the order date, and will I get a rush fee for that
inspection?
Yes, it
is possible to receive a 25-35 day inspection that may be
due within four days from the order date. A rush fee will
not be paid on these orders.
Q:
Will these inspections appear any different on my INSPI program?
No, these
orders will not appear any different on your INSPI program.
However, when you print out these orders, they will show you
the 25-35 day window in which the inspection is to be completed.
We are looking into ways of making these inspections more
visible to you on your INSPI program, perhaps by placing an
icon next to the inspection. Until this icon does appear on
INSPI, please pay special attention to the order that is e-mailed
to you--especially those from Chase, as all of their inspections
will be 25-35 day.
Q:
What happens if I complete an inspection before the 25th day?
If you
complete an inspection before the 25th day, we will not be
able to accept your results. You will be required to return
to the property within the 25-35 day time period to complete
the inspection.
Q:
Why is a 25-35 day inspection ordered early and not on the
25th day?
The 25-35
day inspections are ordered by our clients and sent with all
of the other inspections that we receive from them monthly.
Our clients do not have the capability to send these orders
on the 25th day, as the 25th day can be different for each
order.
**If you
have any questions regarding any inspection that you receive
please contact your regional coordinator immediately. **
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