FHA Winterization Alert
January 20th, 2004
To: FHA servicers:
With winterization season starting this month in some states, we
would like to recommend certain preventative measures for FHA
properties requiring wet winterization.
As you may be aware, it is often the case
that a wet winterization per Mortgagee Letters 2002-10 and 2003-05
cannot be completed within the allowables set forth in those
letters. In such cases, when a bid must be submitted
for winterization approval, the property is left without any
protection and may sustain freeze damage while bid approval is
pending.
We would like to recommend that, when a bid
is required, the property be winterized immediately per guidelines
(shut down of system, pressure testing, and blowing of lines) to
protect the property while we await for bid approval for the
remainder of the wet winterization per the 2002-10/2003-05
guidelines.
Although the "shutdown" partial winterization per ML 97-31
guidelines is a non-claimable cost, we believe the risk of freeze
damage while awaiting bid approval more than outweighs the
out-of-pocket costs (approximately $120 per property). Freeze
damage to one property alone can easily exceed the total cost you
would incur to protect all of your properties requiring wet
winterizations.
We followed this process for a number of our clients last year
and realized a drastic reduction in freeze-damaged
properties. Many of our clients have already instructed us to
perform these "shutdowns" per ML 97-31.
Should you desire that we follow this procedure for your files,
please respond to this e-mail or call/contact Customer Service
Manager Kathryn Harris at 1-800-852-8306, ext. 1383 or email her at
kathryn.harris@safeguardproperties.com
.
Wishing us all a damage free winter season.
Robert