DS News

58 STAYING ON THE SAME PAGE Another ongoing challenge on the property preservation front is working to ensure that all stakeholders in the property preservation chain are the same page. Jaffa noted that timeframe problems can often crop up, as not every vendor and service provider works exactly the same way. "Completion timeframes differ among investors, and local codes often require services beyond the scope of the work assigned to property preservation companies by clients," Jaffa said. "Another current challenge we have seen in the industry is the enhanced oversight of cities with vacant properties," Mosely said. Over 1.5 million U.S. single-family homes and condos are vacant, representing 1.6% of all homes, according to a new report from ATTOM Data Solutions. e report revealed that there are a total of 9,612 "zombie" homes or properties facing possible foreclosure which have been vacated by their owners nationwide, with the highest number of zombie properties in New York (2,428), followed by Florida (1,634), Illinois (985), Ohio (891), and New Jersey (463). When it comes to managing these properties, Mosely told DS News that communication is key. "As more and more cities establish new legislation to protect and preserve their communities, we are constantly evolving our property registration process to keep up with these updates," Mosely said. "is includes maintaining communication with code officials, reviewing ordinances, and updating our property registration matrix to determine the risk of properties." A DAUNTING FORECAST Of course, damaging natural disasters, ranging from storms to wildfires, earthquakes, and floods, all present an increasingly significant risk to the property preservation industry. Chad Mosely suggested that leveraging technology is the key to staying ahead of these dangers, and to responde to them properly when they do occur. "Advancing technology can allow servicers and vendors to track the paths of storms and identify the properties at the highest risk of damage," Mosley said. "is permits servicers to prioritize which properties need to be addressed first, and also enables them to prioritize customer outreach immediately." Costs, of course, can also be elevated following disasters, as Jaffa pointed out, thanks to factors such as debris disposal. Many of the challenges associated with disaster preparedness come down to the bottom line of money, both on the servicer and vendor front. Jane Mason, Founder and CEO of Clarifire, stressed how servicers are going to need to change their previous notions about natural disasters moving forward, at least in part to reduce the current high costs associated with disaster preparedness. "As any mortgage servicer will attest, managing through natural disaster events can wreak havoc on the cost of servicing," Mason said. "is is why today's technology needs to help reduce risk for servicers, as well as their borrowers and investors, when a disaster occurs. e goal is to minimize expenses and add controls during events that can quickly go in the other direction if planning and proactive strategies are not in place." In disaster areas, servicers are going to face competition among vendors and local resources, and cooperation is required. "Not only are we sharing vendors in the affected areas, but many times, the vendors are personally affected by the disasters and may either not be able to perform the work or be limited in the amount of work that they can accept," Mosely said. Jaffa concurred, stating, "Property preservation companies need to assess the capabilities of their inspector and contractor networks in the affected area. Often, because those inspectors and contractors in the area of the disasters have been impacted themselves, preservation companies need to reallocate resources for periods of time and adjust as needed." According to Alan Jaffa, "time is of the essence" when it comes to these events. is means vendors and serviers must prioritize ahead of time by establishing allowables so affected properties can be preserved on the property preservation provider's first visit. "With the volume of properties affected and the potential for serious damages heightened, property preservation vendors cannot get delayed by lengthy bid cycles with the client or investor," Jaffa said. He also recommended prioritizing damage repairs in a descending manner from most critical to least critical. "For example, vendors need to address any leaks before they begin cleanup services, like removing water-soaked items and debris," Jaffa said. e U.S. has experienced 36 major disasters so far in 2019, according to data from Fannie Mae, and for those homes in disaster-areas, preparation begins at the building process. Mike Hernandez, VP for Housing Access and " e seller wants to keep costs down, and the vendor needs their costs to cover their profit margin. If they don't meet in a good place, you risk having the vendor compromise to remain sustainable." —Cheryl Travis-Johnson, COO, VRM Mortgage Services

• Cover