NM Code Enforcement Summit Oct 13-14 Summary

November 11th, 2010

On Oct. 13-14, Safeguard Properties participated in the first annual Code Enforcement Summit in Belen, New Mexico.

Summit Overview     

On October 13th, state and local community leaders and elected officials, code enforcement officers, representatives from field services companies, and property preservation vendors gathered in Belen, New Mexico for the state’s first Code Enforcement Summit.  Safeguard Properties was pleased to be a “Builder Sponsor” for this inaugural event, and to be among the guests invited to share their perspectives and insights regarding the committed role that the industry is taking to both partner with the Code Enforcement community and to responsibly ensure that properties and neighborhoods are protected and preserved.  

The two-day Summit was opened by Mayor Rudy Jaramillo and a Keynote address was delivered by State Senator Michael Sanchez, D-29.   Both Mayor Jaramillo and Senator Sanchez attributed open and effective communication as being critical for addressing vacant blight issues; stressing that by working together, the problems facing our communities can be resolved.  

Attendees received a first hand perspective of the challenges facing and solutions underway in Belen.  A bus tour included visiting several vacant and distressed properties, as well as homes in various stages of rehabilitation through the efforts of local community groups.  Illustrating the diversity of housing stock affected by foreclosures and vacancy, the excursion concluded at a large apartment complex that had fallen into severe dilapidation and was being regenerated through funding from HUD.     

Safeguard Properties High Risk Department Director Steve Meyer was joined by a representative from LPS to present an overview of default servicing and an in-depth assessment regarding how property preservation companies are actively working one-on-one with code enforcement officials to secure and maintain vacant and abandoned properties on behalf of the mortgage servicing industry. The focus and objective of the session was to share the message of the common goals of servicers and municipalities, alike, to protect abandoned properties during and following the foreclosure process.  The discussion echoed the earlier sentiments of Mayor Jaramillo and State Senator Sanchez that open and direct communication has proven to be a successful tool in addressing vacant blight issues.

 Key issues discussed included:

•  Industry’s Best Practices During Pre and Post-sale – In accordance with the industry’s best practices, servicers begin investigating the status of a property at the 45th day of delinquency. The property is visually inspected utilizing several approaches to determine occupancy.  Once determined vacant, the property preservation process, which includes, but is not limited to, scheduled lawn maintenance, securing, monthly interior inspections, and the abatement of any health or safety hazards. The guidelines established by HUD, VA, Fannie Mae, and Freddie Mac further streamline this entire process, which contribute to effective and efficient preservation activities.      
• Communication and Collaboration with Code Enforcement – When an established partnership is not in place, communication between the servicing industry and the code enforcement community may be initiated with the placement of an “in case of emergency” stickers placed on or near the front entrance at the time the property preservation vendor performs an initial secure. Other forms of communication include the Good Neighbor Door Hanger, provided by Safeguard for occupants of those homes immediately surrounding the vacant property, or a code violation acknowledgement sticker left by a code enforcement official.      
• MERS Initiative – Originally designed to serve as an agent of title, the MERS electronic platform was recently enhanced to include within its database the direct point of contact information for property preservation, including both the assigned field services company and the servicer. More than 600 municipalities have taken advantage of free access to MERSLink and are using this resource on a daily basis.  As many in attendance were not familiar with the full capabilities of MERS, Safeguard conducted a demonstration, showing methods to best navigate the system, maximize hit rates, and provide the much needed contact information to resolve property maintenance issues.                                                                                                                               

A round table discussion including Code Enforcement officials, community leaders, realtors, and field services representatives concluded the session.  The facilitator of this discussion drew much attention to community relations, including the Code Enforcement official’s responsibility in finding balance between protecting neighborhoods and respecting the rights of each homeowner.   Mayor Jaramillo closed the session with the same message he delivered to open the Summit, stressing the importance of creating open lines of communication and building effective relationships among all parties involved.  

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.