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 1155 - Temporary Roof Repairs and Bids
To: All Safeguard Vendors
From: Vendor Management

Roofs continue to remain a challenge and liability for preservation contractors, inspectors, field service providers, and mortgage servicers. Minor roof leaks are often the result of mortgagor neglect and remain undetected, resulting in mortgagee neglect claims by the M&M contractors. HUD guideline ML 2002-10 states, "A prudent mortgagee will preserve and protect a vacant property to avoid potential damage to the property." This requires the field contractors to accurately report the condition of roofs to ensure necessary repairs are completed timely.

HUD guidelines also state, "temporary measures will be required to protect the interior of the property from damage caused by leaking roofs. These temporary repairs in the form of patchwork/covering or replacing loose shingles should be performed promptly." HUD guidelines allow for $250 to complete emergency repairs to prevent further deterioration. Safeguard often receives bids to tarp roofs, which is only a temporary repair. Contractors should proceed to patch or repair the roof leak when appropriate.

Replacing loose or missing shingles or patching with tar or roof cement can be completed as a emergency repair and will protect the property better and longer than a tarp. In addition, these minor repairs can be completed quicker and with more safety than tarping steep roofs. Safeguard recommends that spare shingles and roof tar or cement be included as standard tools in your inventory.

When minor repairs cannot be completed for the $250 allowable, please refer to Memo 1098 Bids for Tarping Roofs for bid amount guidelines. All bids to tarp a roof must include the size of the damaged area, a detailed description of the repairs, and must be accompanied by bids to patch/repair and replace the roof.

Memo 1152 The Importance of Photo Documentation and M&M Demand Issues was recently distributed to remind contractors of the importance of providing supporting photo documentation for completed work, as well as property condition. Safeguard often receives photos to support roof leaks and damages, but rarely receives photos of ceilings to support that no roof leak is present.

Providing photos of the condition of the ceilings during the initial secure, subsequent visits, and interior monthly inspections will reduce liability and provide our clients with necessary documentation for claim reimbursement from HUD. Often, contractors report a severely deteriorated roof and provide a bid to tarp or to patch when there is no visible leaks. It is very important to provide supporting photos to document the interior condition of the ceilings to support the roof was not leaking.

Completing minor repairs, such as patching or using roof tar or cement will protect the property more efficiently than tarping, reduce bids and requests for second bids, and enable the servicer to convey the property to HUD faster. Photos to support roof and ceiling condition and the work completed will reduce your liability and ensure payment for services rendered.

If you have any questions regarding this memo, please contact High Risk Manager Steve Meyer at steve.meyer@safeguardproperties.com or 800-852-8306 ext. 1179.

Thank you for your continued cooperation.