These memos are posted to ensure that our contractors are getting up-to-date information on significant issues. We welcome any comments or questions regarding the memo feature.

Memo 1145 - REO Grass Cut Season 2006
To: All SPI REO Contractors
From: Vendor Management

The 2006 grass cut season has begun and following is a review of Safeguard's REO grass cut policies and procedures.

We have created a list of REO Frequently Asked Questions pertaining to REO grass cuts for easy reference. These Frequently Asked Questions and the following policies and procedures must be reviewed and understood by you and all of your staff performing grass cuts.

REO properties are being actively marketed for sale and maintaining these properties in a condition that is appealing to potential buyers is a requirement of our clients. In effort to maintain a presentable exterior and "curb appeal" all clippings are to be raked and removed from sidewalks, driveways, and lawns and weeds are to be trimmed from fence lines, foundation of the home, driveways, and flower beds without damaging the existing plants or flowers.

Client-specific pricing and instructions regarding grass cuts and shrub trimming are listed on orders and are to be adhered to. FHA pricing is to be followed if client-specific pricing is not listed on the order, and shrubs must be trimmed within the grass cut allowable. Shrub clippings must also be removed. Both Safeguard and the brokers will be verifying the work is completed to standard, therefore, ensure your staff understands and adheres to the instructions on the order and Safeguard specifications.

Before and after photos of the front and rear yards are required to justify the amount of your invoice. Photos of the fence lines, driveway, and sidewalks are also required. Before and after photos of the shrub trimming are required as well.

REO grass cut season begins as soon as weather permits. REO properties are not governed by FHA timeframe requirements, therefore, proceed to cut the grass when completing an initial service, regardless of the date.

In effort to ensure REO Assets are kept in marketable condition, you are required to report on the interior condition, as well as exterior condition, on every grass re-cut. In addition to reporting whether the property is secure, the presence of a For Sale sign, and verifying the property is in marketable condition Safeguard requires the Maid Services to be refreshed upon each visit to the property. This applies to visits to the property for grass cuts, as these are part of the ongoing services. Refreshing the Maid Services includes wiping down the counters, cabinets and windows to assure that the property stays in broom-swept condition required for all REO assets.

Also to ensure properties are kept in marketable condition, you are required to report to the property on the due date regardless if the grass needs to be cut or not. Limited growth can be reported as long as the photos are provided to support limited growth, and photos are required to support the refreshing of the maid services.

Photos to support the refresh of the maid services should be taken of the front entrance or foyer, bathroom, kitchen and living room. If all of these required photos are not provided with the update, you will not be paid for the order. We will not hold the order open or request additional photos and you will not have the opportunity to submit them after the order is closed.

There are areas that will be snow-covered or not warm enough to justify performing the initial grass cut and it is your responsibility to be aware of the weather and grass conditions in your area. In these cases, please notify your Regional Coordinator so that the grass cut due date can be adjusted to later in the year.

Safeguard will accept bids if a property requires another complete, top-to-bottom completion of the maid services. As a general rule, however, it has been our experience that if the maid service was done properly the first time, a quick wipe-down will usually restore the property to appropriate marketable condition. You will be required to submit an explanation for why a bid is being submitted, and photos must be submitted justify the bid.

Please also keep in mind that you have an REO Regional Coordinator in addition to your P&P Regional Coordinator. Please communicate directly with your REO Regional for any matters involving REO properties.