HUD And REO Property Preservation

brianruehl

Well got my name changed seems theres another mr services in ohio. Question?i got my million to 2 million coverage on my company i got my ein number is there any other insurance i must have, and this sirs certification is it for real?i am starting out on my own here in ohio and i want to be prepared thank you for any help on this

FremontREO

Get your E&O Insurance, get work comp, get commercial auto and trailer coverage. If you remove hazards get commercial pollution liability and then you are well on your way to the poor farm!

OK Had to share this with everyone: bank wants this sheeted and tarped for $300....ANY TAKERS? I about swallowed my tongue on this and said "nope not this nut" and they said I have to do it at approved HUD rates for this and I said "nope not this nut" "not getting on that roof without another zero behind that number....
Anyone want some work

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BPWY

Hell no.

I might need the work, but I don't need the hospital bill.

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somewherein815

Good call Fremont. By looking at the photo, one step on the roof may be a quick trip to the basement. That's ridiculous that they told you "you have to do it at HUD rates". The picture shows an obvious risk by getting on the roof. I'm glad you told them no. This profession needs more people like you.

Did you bid to demo the house?

FremontREO

Nope no demo. They want to rebuild after the insurance company approves the repairs. No 3rd party fire damage firms allowed so they want a P&P crew to rebuild. Cost of rebuild vs cost of demo and new modular is a "no brainer" but.......its a funny business.

sossecureda

I had a 100 year old apartment building that had major structural problems and the bank kept insisting on a repair bid. I thought about bidding 500,000 but was afraid it still wouldn't be enough as I have never handled that large of a job before. A year later and it's still sitting, I think the city finally condemned it.

Also what is average $ for workman's comp? Mine seemed pretty high.

FremontREO

We do a lot of the rehabs but only "waste" our time when we know the repairs won't exceed the values since obviously they won't fix.
Work Comp will be different for everyone since it is based off YOUR gross volume/receipts and your State of residence. Ours is very high also. Be sure to have your agent use the right job classification in case you have to "use" your policy.

XanadooLTD

Ya they will want a repair bid, but probably will not happen.

george keel

good call

sossecureda

I didn't want to bid the repairs but the property manager kept insisting on a bid even after I told him it would easily cost more than the building was worth. I was going to bid real high just to give him a bid but was afraid of the slight chance it might get approved. I ended up telling him it was just too large a project for me. I usually repair the newer subdivision houses around here, not the full gut rehabs the old city houses need.
I probably should look for a new agent more familiar with the type of work I do when my policies are due for renewal, she doesn't seem too knowledgeable about the coverage I need. Every time I ask a question I get "uhhhhm I'll call you back". I just about fell out of the chair when I got work comp though, it was 8 times my gen liability.

FremontREO

Work comp only 8x the GL sounds pretty low to me--at least on my end of the checkbook On the big jobs we normally get paid to get a 3rd party estimate from the "pros"...plenty of very good guys on this forum that would love that work and pay for them for the estimate in case its a waste of time. Keeps everyone happy that way. I've been researching our insurance package lately (in fact today included) since our renewal is within 60 days and I found another one that I had thought about but didn't realize the impact......Terrorism coverage. Due to the Patriot Act if a "ex homeowner" comes back and destroys a house after a P&P contractor secures it then you can be held partially responsible for the damage for a bad secure job since it is considered an act of terror? When the underwriter and I was talking I said "there is absolutely no house that I couldn't get into even after a lockchange" and they agreed BUT even if you fought it and won you still have to bear the cost of your legal fees yourself...so purchase terrorism coverage (I always had but thought about dropping it)....NOT now.

sossecureda

I feel better about the work comp now, but I was told I didn't need the terrorism coverage. Time for another call to the agent
Thanks for the tip.

BPWY

Same here.




How long until we pay 100% of our income to protect us in the case of a lawsuit?

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GTK

We're here in Central Florida too

FremontREO

Exactly! I have owned several businesses over the years but I have never ever ever seen a business such as Prop Preservation evolve to where it has over the past 13 years.

a1propertyclean

The industry has grown out of control and the rules keep changing due to new scams popping up and new classes of people needing protection.

Then, of course, the government has thrown money at a lot of lost causes over the past year or so and unemployment is so bad that people are working for any dollar amount they can get, including PP vendors and contractors.

I owned my bookkeeping business from 1999 to 2008 and the only rules that changed each year were tax rules. The rules in this industry change every time someone gets sued.

We detail every little thing and require that our vendors do, too, in order to minimize our risks.

We've had our share of issues but none that were too tough to handle. But every day those risks increase. Just CYA the best you can and make sure you've got an insurance carrier that doesn't close up shop when you need them the most.

Linda

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Linda @ All REO Preservation
http://allreopreservation.com
allreo.vendor.review@gmail.com [experienced vendors only - please list state and counties if you're looking for work]

FremontREO

Linda,
So true. But, how do you cya when a company does a rule change in Feb 2010 and start their "recoups" on work you already done and paid out from 2008 because it isn't done/bid per the new rule change? My magicball is busted right now but trying to find someone that can fix the bugger. Nice when new contracts state "all company recoups (ie the magic word) are non-negotiable". I don't know to many companies contracts that don't read the same language. They need to change their contracts to meet State Laws that are something like this "buyer/signer beware"

deckman8887

GTK
What part of Central Florida are you in ? Maybe we can hook-up and network together.We cover from Sebring north to Clermont and from St. Cloud west to Plant City.We do approx.400 re-cuts a month and anticipate that number to grow as we reach grass cutting season here in Florida.Check out my profile on linkedin.com just type in Mike Wilson-my company will show up as Wilson Enviromental and Construction Services.Along with this forum its a great place to join groups and network with people

BPWY

Earlier this week I was contacted by the following company.

Mortgage Specialist International
6616 Davis Blvd, Fort Worth, Texas 76180
800-346-2432 817-428-0000 Fax 817-428-1100
https://www.msionline.com






Asking for all the usual info you've come to expect from a potential new vendor. Before I replied to them with all of my personal info they requested for a background check I ran them by a much more experienced contractor.
FremontREO. To see if he has heard of them.
He advised me to verify the company before sending personal info. 2 days ago I sent them an email asking for info to verify their company as a non spammer before I sent them my info that could be used to steal my ID.
NOT a word back from them.
I'll let him tell you about his friend.

Now I'm not saying they are a spammer, but just throwing the info out there to be careful. If any of our members here are working with them and can vouch for them I'll retract my post.

If its not one thing is another in this biz.

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BPWY

"Seizing the Wrong Home: Rare, But a PR Nightmare"



This is an impossibility in 99% of the rural areas many of operate.
There is no way I'm driving up to 3 or 4 hrs one way to post a message that a property will be preserved in 3 days. Then drive back home, and then drive back out when the 3 day window closes. If the banks think its costly now to get P&P work done. Just wait until they start this nonsense.

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