Managing an REO

From walls to floors and cabinets to countertops, asset managers have to cover a lot of ground in order to make sure an REO property is clean and ready to sell.
It is a wise move for asset managers to give their real estate agents, brokers and service providers a guide to use when getting real estate-owned assets spic-and-span, according to CJ Gehlke, president and founder of REO Nationwide in Newport Beach, Calif.
Let's get down to specifics. Inside the home, Ms. Gehlke recommends to take a close look at the kitchen. Remove the refrigerator if it is inoperable and not repairable. If it is in working condition, remove the kick plate at the bottom front of the refrigerator and remove and clean the defrost pan. Defrost the fridge, remove and clean all shelves, racks and drawers. After cleaning, reassemble the refrigerator, and turn it on, setting the control at the warmest setting.
For drawers in the kitchen, empty and clean all stains and food particles by washing them with mild soap and warm water. Remove any worn paper lining. Wipe out drawers. It is important to clean the interior of the dishwasher and remove any food particles. Clean the soap holder, racks and trays. Clean the exterior by wiping with mild soap and warm water.
Next, move down the hallway of home to the washer and dryer. REO Nationwide says it's important to clean the interior thoroughly and include any filters. Remove all mineral and dried soap deposits from the top of the washer.
"For the furnace, remove and thoroughly clean or replace filter in the bottom of furnace. Clean all windows inside and out. Don't forget the screens. Vacuum Venetian blinds to remove dust and spots," says Ms. Gehlke. "Wipe the window sills to remove dust, spots or stains. The walls and ceilings take up a great deal of time. Brush out all corners to remove any dust. Clean the ceiling surrounding all vents."
There's more work to be done. Inside the bathroom, make sure to sanitize all tile and shower doors to remove lime deposits and mildew. Scrub the tub as well as the shower and sinks. "It is important to clean thoroughly any woodwork, including doors, door frames and baseboards."
Also, sweep and mop hardwood floors, title and linoleum. Don't forget to take care of the carpet. Remove stains and shampoo when this is requested. Empty and tidy up shelves, drawers and closets thoroughly. Remove, dust and replace the light fixtures. All fixtures should have an operable 60-watt bulb in each socket, says Ms. Gehlke. "If the house has a fireplace, go over it thoroughly to include the ash compartment. Sweep, clean and remove all trash and debris from the back porch."
Don't forget the garages and carports. Get rid of all trash and debris, and sweep clean these areas of the property. Remove the oil and grease from floor of carport/garage and driveways. Vacuum any vents in the property and haul off items from the storage sheds and make sure to sweep this area clean. And of course, remove all items of personal property.
If the amount of personal property exceeds a certain threshold (industry standards are $500), the personal property goes through an eviction process in accordance to state and local requirements. When it comes with dealing with the outside of the home, Cheryl Lang, president of the Houston-based Integrated Mortgage Solutions, says in the summer, contractors mow the lawn every two weeks and trim the bushes during April to October.
She says part of property preservation means ensuring that all hazardous materials have been removed from the property. This may include removing swing sets, tires, paint, boarding up in-ground pools or removing aboveground pools and draining ponds.
"The process of preserving property has been greatly improved by the use of digital imaging," describes Ms. Lang. "Because contractors may miss something or deem a property vacant when it is occupied, most vendors today require pictures to verify contractor's work. It is estimated that roughly 20% of contractor mistakes are caught using digital photos."
Some vendors today even provide phones with camera capabilities to contractors, so they may collect and share real-time photos in order to expedite the property preservation process. As more and more REO homes need to be monitored and preserved, technology ultimately allows more details to be presented on every property.
Photoinspection.com, a Buffalo, New York based company, provides property inspection services for the insurance and mortgage industries. The company, which was established in 1999, has focused on developing a robust and functional technology platform from the very beginning. The company has built a national network of inspectors, which was not an easy thing to do for a small company that was surviving on a bootstrap financing, says Ted Onyeji, president.
A network that includes several thousand appraisers located across the country has become the backbone of the company, he describes. Inspectors are monitored on their first 10 jobs to make sure they comply with industry standards. "We've noticed a lot of inspection companies are beginning to add inspectors across the country, especially in the areas of Florida and Michigan because of the glut of houses out there."
The biggest goal is to make sure the vacant property is not an eyesore.
Safeguard Properties, a privately held field services company located in Valley View, Ohio, makes sure the grass is cut, that there are no broken windows and if there is a gas or water leak inside the home, the company addresses those types of problems immediately.
Safeguard also offers maid services. Contractors are to follow the maid services checklist included in the work order and leave it at the property signed by the person who completed the services. This is a requirement when completing the initial services order. "You have no idea what we find in some of these properties. We will wash the counters down, clean the fridge, put in air fresheners so it doesn't smell like an REO," says Mr. Klein.
Bleach and household cleaners are used to rid a property of a smell, along with a powder scent put down on the carpet before vacuuming. Contractors bring a hot water supply with them to perform the cleaning. If carpet is in deplorable condition, the contractor will notify Safeguard to have it removed. "The lender wants to sell the REO as soon as possible to a homeowner who will live in the property. You want to make it as attractive as possible. You have to make it look and smell good. We try to do the best we can. We do as much as we can so the neighbors don't have a rundown home with 50 tires in the front yard," he adds.
Properties are becoming more seriously damaged as well. Some homeowners in foreclosure are so frustrated they will do serious damage to the property. They take out appliances, put holes in the walls and holes in the floor, he says. "There is no rhyme or reason. They are taking their frustration out on the system or the process. We are seeing that more and more."
By the time the mortgage company gets a hold of one of these properties, it is sometimes problematic. Safeguard hire various contractors they have built relationships with to do repairs such as re-roof a home. In today's market the industry is seeing an increase in the amount of repairs being done to vacant REOs.
"The goal of the mortgage company is to sell this property as quickly as possible. Every day they hold on to it is costing them money, in addition to the foreclosure process. It's a bigger financial loss. We want to make the house inviting and attractive to the possible homeowner."

Full Article: http://www.managingreo.com/feature/?story_id=89

Sacramento Define Swine Flu?

Swine Flu
Inquire about the availability of documents in alternate formats.
Swine Flu is a respiratory disease typically found in pigs. However, human Swine Flu cases can and do happen. Swine Flu has been detected in the United States, and locally in Sacramento County.
Use the following information to learn the symptoms, treatment and prevention of Swine Flu, as well as news about it’s occurrence locally and nationally.
Swine Flu and You – Description of the Swine Flu symptoms, treatment, and prevention from the Center for Disease Control
Swine Flu Information – Comprehensive resource from the State of California about Swine Flu.
Swine Flu in Sacramento County – Update from the Public Health Division
Swine Flu Investigation – National and international information from the Center for Disease Control
The County and City of Sacramento recommend you call 2-1-1 for general information about the swine flu. If you believe you have flu symptoms, please call your doctor, or 9-1-1 for a life threatening emergency. By calling 2-1-1 (or 1-800-550-4931) your questions will be answered by a representative who will have the latest public health information.

Click on the following link to gather more information on the highlighted links above:
http://www.sacramentoready.org/SAC_Sacready_DF_SwineFlu

Reissuance of the Introduction of the Home Affordable Modification

This Announcement (09-05R) is a reissuance of Announcement 09-05, which was originally
issued on March 4, 2009. This Announcement provides additional policy clarification and
instruction and supersedes Announcement 09-05 in its entirety. Policy clarifications and
new instructions that are incorporated into this Announcement are identified by bold type.
(Other minor editorial changes are included in this document but not identified in bold.)
Background
On February 18, 2009, President Obama announced the Homeowner Affordability and Stability
Plan to help up to 7 to 9 million families restructure or refinance their mortgage loans to avoid
foreclosure. As part of this plan, the Treasury Department (Treasury) announced a national
modification program aimed at helping 3 to 4 million at-risk homeowners – both those who are
in default and those who are at imminent risk of default – by reducing monthly payments to
sustainable levels. Treasury issued uniform guidance for loan modifications across the mortgage
industry in Supplemental Directive 09-01 on April 6, 2009. This Announcement provides
guidance to Fannie Mae servicers for adoption and implementation of the Home Affordable
Modification Program (HMP) for Fannie Mae loans.
Under the HMP, servicers will use a uniform loan modification process to provide eligible
borrowers with sustainable monthly payments. The HMP implementation guidelines set forth in
this Announcement apply to all eligible one- to four-unit owner-occupied properties securing
Fannie Mae portfolio mortgage loans and MBS pool mortgage loans guaranteed by Fannie Mae.
The HMP will replace the Streamlined Modification Program introduced in Announcement 08-
33 and the Early Workout™ program announced in Announcement 08-31. The HMP will expire
on December 31, 2012.
All Fannie Mae-approved servicers must participate in the program for all eligible Fannie Mae
portfolio mortgage loans and MBS pool mortgage loans guaranteed by Fannie Mae.
Announcement 09-05R Page 2
Servicers may also elect to participate in the HMP for other qualifying mortgage loans that:
 are not subject to Fannie Mae’s credit loss guarantee, and
 are held by servicers in their own portfolios or are serviced for other portfolios or
securitization trusts or investors.
These other qualifying mortgage loans are referred to as Non-GSE Mortgages in this
Announcement.
As announced in Supplemental Directive 09-01, in order for a servicer to participate in the HMP
with respect to Non-GSE Mortgages, the servicer must execute a servicer participation
agreement and related documents with Fannie Mae in its capacity as financial agent for the
United States (as designated by Treasury).
This Announcement also introduces a new HomeSaver Forbearance™ foreclosure prevention
option and a new Fannie Mae loan workout hierarchy. The HomeSaver Forbearance provides an
additional foreclosure prevention option for borrowers who are NOT eligible for the HMP.
This Announcement covers the following topics:
 HMP Eligibility
 Underwriting
 Modification Process
 Servicer Delegation, Duties and Responsibilities
 Reporting Requirements
 Fees and Compensation
 FHA HOPE for Homeowners
 Compliance
 HomeSaver Forbearance
 New Workout Hierarchy
 Retirement of the Streamlined Modification Program (SMP) and the Early Workout Program

To read the entire document with detailed information please visit the link below:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf

Buying Time Against Foreclosure

Buying “T I M E”Never before has the expression “If I could just buy some time” meant so much to people. When you are facing foreclosure you need time to discover your options, analyze your situation and implement an action plan. Your most precious commodity is time…And it’s running out. When your money is running out… You don’t have time to wait for the trickle down effect of the stimulus package to make a difference in your personal situation. While the package will make a significant difference over the long haul for thousands of Americans, anyone who thinks it is going to quickly make a difference for EVERY American is kidding themselves. Facing reality is hard, but necessary. As a country, we have ignored hard truths with disastrous consequences for too long. Nothing will be gained by continuing to point fingers. However, we must immediately recognize that each of us has a role to play in correcting the serious housing problem we face as a country. (Even if your home is paid off, FREE and CLEAR). The housing market holds the key to stabilizing our country, so anything we can do to keep people in their homes is a step in the right direction.First thing’s first...DO NOT ABANDON YOUR HOME. Even when you are behind on your mortgage, no matter how far behind you are, DO NOT abandon your home until the entire legal process has been played out. You can stay in YOUR house until your right to possession has ended. Exactly when that time is will be determined by three (3) factors:1. Type of foreclosure in your state: judicial or non-judicial2. Whether you have a mortgage or a deed of trust3. State statutes regarding sheriff or trustee sale and possession timeframesFind out the answers to items 1, 2 and 3, and then abide by them. Make sure your lender abides by them as well. Things could improve while you are holding out. Hold on.Things are changing radically and very quickly because of the magnitude of the housing problem. Your local courts could dramatically change the way they process pending foreclosures so that you have a chance to work things out with the lender. Stay in our home and fight for the chance to work things out. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If you can present a viable plan, your chances of retaining home ownership are pretty good.Second thing’s second… I know you know that, but I needed to get your attention. Probably the second most valuable thing anyone will ever tell you to do to save your home from foreclosure is to:1. Demand the lender or servicer who is threatening to sue you for foreclosure produce the original note/deed of trust which says you owe them. In legal terms you are asking them to demonstrate that they are the “real party of interest.” In common language that means, prove I owe you. Prove you have the right to demand payments from me. (This has been discussed on our blog, which can be found at homeownershipmatters.blogspot.com).2. The most effective way to demand this documentation is with a “qualified written request”. You are entitled to request that and any other information you want which is related to servicing on your loan (any mortgage loan in the United States) under federal RESPA regulations.What Choices do I have?Let’s consider the answer to that question. It is critical that you start with an honest inventory of your situation. How far behind are you? Do you have the resources to resume payments? If not now, when will you be able to do so? What do you want to do? What are you ABLE to do? Why should the bank consider your proposal? You’ll need to able to defend it as being reasonable, based on your current circumstances.Space in this article will not allow me to go into detail but I will provide you with the options you can consider. Do further research on each of them, online, in the library, on websites such as HomeOwnershipMatters.com Or at the blog: HomeOwnershipMatters.blogspot.com.a. Options to keep the house—special forbearance, loan modification or a partial claim. You need to learn what each of these means and how it worksb. Options to let the house go—short sale, assumption or deed-in-lieu. All of these options are better than foreclosure but you need to know exactly how they work to avoid creating yet another problem for yourself down the road.c. Reverse mortgage could be considered, it could be your solution. Be sure to use a government backed reverse mortgage if you decide to use this option.d. Receiving disability payments (if you have a claim pending) could make the difference. Hold on until you know what you will be receivinge. Acquiring a roommate could change your finances—get started working on it (I mean a roommate who will PAY—not one who will add to your expenses)f. Selling unnecessary items in order to cover the gap until you get a permanent solution. Ebay or Craigslist could bring in some immediate cash. (Stop crying—we are trying to save your home and Buy “T I M E”).g. Some other solution which has not even occurred to me“Answer” the summonsThe summons is your official notification that the lender has moved to legal action. The court notifies you via the “summons”. Your response should be to the clerk of the courts, the lender/servicer and their attorney. It is critical that your answer be received within the legally stipulated timeframe in your state. It is strongly recommended that the answer be sent by certified mail, with a signature required. This is a task which you can handle on your own, with a little coaching.Basically, an answer should acknowledge that you are aware of your situation and that you are working with the lender on a plan. Specify what that plan entails. If you are challenging whether or not the lender has the legal right to foreclose (due to failure to produce the original note or demonstrate that they are the “real party of interest”) this is your time to say so. The foreclosure is likely to be stalled based on the quality of a timely, well prepared “answer”.Local initiative is neededWe all have high expectations of the new administration but our President has said repeatedly, and has demonstrated with his grassroots campaign, that the masses can make a difference, when they choose to become involved. If every person who reads this article would share it with the people in your personal database, you would help several people to avoid foreclosure.If the leaders of organizations would share the articles and the link to the blog with your entire company, you might save not only their home but the home of some of their family members or friends. Driving people to the blog and website so that they can get practical, easy to understand information to help them with their personal choices could make a big difference. Anyone reading this who has the connections to have a workshop in your city or a program aired on Public Access or Government Access television or local radio show could reach thousands of folks with some concrete/self help which could make all the difference in your community. I am a teacher and a writer. I know the role I am to play. I ask each of you to find your role in helping our country get back on its feet. We must find some resolution to our housing problems. Mildred Wilkins, founder and president of Home Ownership Matters, LLC.