The VA St. Paul Regional Loan Center has issued a new memorandum regarding property preservation services and cost allowables. There are several substantive changes to the guidelines under this new release, which rescinds Memorandum 04-05.

The new memorandum states that debris removal will be reimbursed at the rate of $25 per cubic yard, where the allowable had previously been $100 per ½-ton pickup truck load.  The memorandum also explains what information must be provided on the required receipt of disposal, and it goes on to clarify what materials servicers should consider health and safety hazards.

The memorandum establishes a $250 allowable for sump pump replacement, and it provides a reference for the maximum reimbursement for mileage for appraisal work as that fee is set annually by the GSA.

Finally, it instructs servicers that properties located in certain Chicago zip codes (identified as "hot zones") should be inspected more frequently to prevent demolition by the city, and that VA will reimburse for two (2) inspections per month in these zip code areas.

Please follow the link below to read the new memorandum in its entirety.

St. Paul Regional Loan Center Memorandum No. 05-03

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