VRM VA Broker Guide
Confidential Information - Property of VRM Mortgage Services 1
REV 2 Q3.2013
VRM VA Broker Guide Q3.2013
VRM VA Broker Guide
Confidential Information - Property of VRM Mortgage Services 2
REV 2 Q3.2013
Table of Contents
Welcome Message …………… 3
The AMS System ……………. 4
Assignment Acceptance …… 4
Asset Reassignments ……… 4
Property Services Selection .. 5
Pre-List Process………………… 5
Occupancy ………………….. 5
Personal Property ………….. 5
Abandoned Animals ……….. 6
Personal Military Items …….. 6
Evictions ……………………. 7
Cash for Keys ……………… 10
Initial Broker Inspection ….. 11
HOA ………………………… 11
Tax Payment Options……… 12
Property Services ……………… 13
Initial Services ………….. 13
Re-Key…………………… 13
Recurring Services………. 18
Repairs …………………………. 19
Repairs v. Preservation …….. 19
Repair Bids ………………… 19
Approval of Repairs ………… 19
Bills Paid Affidavit & Release.. 19
Emergency Repairs ……. 20
Listing ………………………….. 21
Initial BPO ………………. 21
Create Listing Agreement .. 21
Holding for Offers ………… 21
Sales Negotiations………………. 22
Submitting Offers ………… 22
Conflict of Interest ……….. 22
Multiple Offers ………….. 23
Renegotiation …………… 23
Closing ………………………… 24
Closing on Schedule ………. 24
Closing Not on Schedule …. 24
Close Date Extension .. 25
Sale Fall-Through ………. 25
Vendor Invoicing ……………….. 28
General Notes …………. 28
LPS Categories ……….. 28
Contacts & Glossary …………. 31
Resources ……………….……. 32
Vendor: Who Does What? . … 32
Winterization Schedule ……. 33
Abandoned Animals ……….. 34
Initial Service Checklist ….. 35
Bi-Weekly Checklist ………… 36
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Cheryl Travis-Johnson
Welcome Valued Partner,
VRM understands the value of effective partnerships. Choosing the right people, sharing a
common mission, and being in communication with one another are vital to the success of
our work together and our service to the Department of Veterans Affairs. We value you!
Our mission is excellence. Simple but not always easy! In addition to the client-specific
training and resources available to you, this practical, portable tool, the VA Vendor Resource
Guide, is designed to give you a high level view of the asset management processes
required by VA. The step-by-step format will also assist in your communication with our In-
House team, as we work together to resolve issues efficiently and effectively.
We thank you for your commitment to the VRM Vendor Partner Network and to our client, the
Department of Veterans Affairs.
With best regards,
Cheryl Travis-Johnson
Executive Vice President & Chief Operating Officer
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The AMS System
AMS is VRM’s proprietary system designed to
interface with and manage both its Vendor partners
and Assets. You have access to AMS and both its
subsystems: the Vendor Management (VMS) and
Asset Management (AMS) systems.
In fact, all VRM Vendors are required to log into
AMS’s AMS daily, https://AMS.vrmco.com, to
check for new assignments, tasks, and messaging.
PLEASE NOTE: In this document, AMS and AMS
are used interchangeably, to refer to the VA asset
management process and the tasks involved.
Accepting / Declining Assignments
Asset assignments are made to Vendors through
AMS.
Initial Accept/Decline Timelines:
Brokers have two (2) calendar days to Accept or
Decline an Asset assignment within AMS.
If the Asset is ‘Declined’ by the assigned
Broker/Agent, it will be reassigned to the next
closest Broker/Agent that is Active and eligible.
If the Broker/Agent fails to Accept the asset
within two (2) calendar days of assignment, the
asset will automatically be reassigned to the next
closest Broker/Agent that is Active and eligible.
Asset Reassignments:
VRM reserves the right to reassign any and all
assets, with written notice to the assigned
Broker/Owner/Agent, for reasons including, but
not limited to:
Performance of Broker/Agent
Non-Responsiveness of Broker/Agent, defined
as failure to respond to VRM by email, phone,
or messaging within 1-2 business days.
Extended Days on Market (DOM), typically
exceeding 90 days.
Reassignment Process:
Previously Assigned Broker/Agent must:
1. Cease and desist all marketing efforts.
2. Remove property from MLS, if applicable.
3. Coordinate key exchange with newly
assigned Broker/Agent.
4. Provide all relevant information and/or
documents to the newly assigned Broker.
Newly Assigned Broker/Agent must:
1. Coordinate key exchange.
2. Obtain all relevant information and/or
documents for the asset.
3. Enter asset into MLS as soon as possible, if
applicable.
https://vrms.vrmco.com/
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Selection of Local Property Services
Vendor
The Broker/ Agent will be provided a list of current,
local Property Preservation Services Vendors by
AMS. The Broker/ Agent has 24 hours to make his
or her selection of a Property Preservation Service
Vendor with whom to work or the selection will be
handled internally by VRM Vendor Management.
To do this, the Broker/ Agent should select a
Property Services Vendor from those available in
AMS, then:
1. Contact them to confirm they are available to
work on the asset.
2. Go to AMS and ACCEPT the asset “on
behalf of Property Services Vendor.”
Pre-List Process (Broker/Agent)
Occupancy Check
The Broker/Agent has one business day to visit the
property and attempt to determine if the property is
vacant or occupied and, if occupied, determine the
military status of the occupants.
If the Broker /Agent cannot determine occupancy,
then it should be assumed that the property is
occupied by a tenant.
Vacant Properties
If the property appears to be vacant and without
evidence of personal property, the Broker/Agent
will post the ‘No Trespassing’ sign (see AMS
Library) in the front window, place a lock box on
the front door (the lock box code is the last four
(4) digits of the REO ID #), take interior and
exterior photos, have the Property Services
Vendor rekey the entire property, and complete
the ‘Enter Occupancy’ Task in AMS.
Occupied Properties
If the property appears to be occupied, the Broker
/Agent will attempt to make contact with the
Occupant(s) during the first visit. The Broker
/Agent will also post the VA-approved ‘Notice to
All Occupants’ (see AMS Library) flier on the
main door.
Service Members Civil Relief Act (SCRA)
If the property is occupied, the Occupant may be
protected under the Service Members Civil
Relief Act (SCRA).
When a property is occupied, the process is
paused for the Broker/Agent until an Eviction
Attorney has completed an SCRA-verification
search, indicating if the former Mortgagor or
Tenant is Active Military, in which case they are
protected under SCRA.
The Eviction Attorney must complete the SCRA
search before the Eviction and/or Relocation
Assistance can commence.
Tenant
When a Tenant informs the Broker/Agent or
Eviction Attorney that their existing lease is
protected under Protecting Tenants at
Foreclosure Act (PROTAFA), the Broker/Agent
will request a copy of the lease agreement or
other evidence that a lease was entered into,
between the Occupant and the former Owner
prior to the date of foreclosure.
Personal Property
If the property has personal property of any
value, the Broker/Agent will determine the
resale value of the property, make a complete
list, take complete, date-stamped photos, and
then indicate the presence of personal
property and its resale value in AMS, via the
‘Enter Occupancy Info’ Task.
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Military Items
Any personal belongings that may be
construed as ‘Military items’ must be stored
off-site for a period of 180 days. If such items
are present in a property, please alert the
Eviction Specialist and forward a detailed
description, along with photographs.
Abandoned Animals
The Occupancy Inspection may reveal animals
abandoned by former occupants. Please see
Page 34, Figure 3, for recommendations.
List of Personal Military Items
The following is a list of general items that could be considered personal military belongings. This list should NOT be considered complete. Please err on the side of discretion, storing any and all articles thought to be military in nature.
Writing materials (pens, pencils, stationary, etc.) generally embossed with a DOD or branch seal.
Books, Study Guides or ‘Knowledge’ of a military nature.
Back packs, duffle bags, ‘Sea Bags’, and/ or Foot lockers.
Jewelry, including but not limited to watches bearing a branch seal, Military Academy class rings, religious medallions, etc.
Cigarette lighters bearing Branch or Unit Seal or insignia.
‘Dog tags.’
Certificates of Merit or Unit Citations.
Medals and/or ‘Campaign’ ribbons (commonly referred to as ‘Fruit Salad).
Uniform Devices, such as marksmanship badges, uniform breast devices, para/jump wings, aviator wings, scuba diver device, rank devices, etc.
Flags (American flags, American Flags incased, Branch Flags, etc.)
Papers, documents, orders. Generally, these documents will have a branch or DOD seal. Other documents will have a ‘DD’ number affixed at the bottom of the page. Additionally, please look for SSN’s, financial or personal information, as well.
Pictures, both formal photographs and informal photos in ‘theater,’ deployment, etc.
Swords and knives, including Commissioned- and Non-Commissioned Officer swords for ceremonial purposes, Ka-Bar/combat-styled knives, etc.
Non-functioning Arms. (Generally, non-operating sidearm used for decoration or given as an award.)
Dress Uniforms and/or articles of the Uniform of the Day, including belts, shoes, socks, covers, etc.
Camouflage articles of a Battle Dress Uniform or Cammies, including boots, socks, belts, boot bands, undershirts, cammie trousers, cammie blouse and/or covers, etc.
Additional gear, including gas masks, canteens, scuba equipment, holsters, helmets, toiletries, First aid kits, POW- MIA stainless steel wrist bands, issued sunglasses and/or goggles, etc.
If you have any questions or concerns about
items not listed above that might be considered
‘military,’ please contact your VRM Asset
Manager. Thank you.
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Evictions
Determining Occupancy Status
Before an Eviction process can be initiated, the Broker/Agent will have one business day to visit the property and determine if it is occupied, vacant, or vacant with personal property.
Occupied
IF THEN
The property appears to be occupied
The Broker will attempt to make
contact with the occupants on
his/her first visit and will post the
VA-approved ‘Notice to All
Occupants’ flier on the main door
of the property.
NOTE: The ‘Notice to All Occupants’ flier informs the Occupant(s) that the property has been foreclosed and provides contact information for the Occupant(s) to discuss their options.
IF THEN
The Listing Broker/Agent is able to make contact with the Occupant(s)
The Broker/Agent will attempt to obtain the following information:
Occupancy Status
Current lease terms (if applicable)
Determine Occupant’s intention with the home
There are three (3) , as follow: Occupant types
- Former Mortgagor (includes relatives of former Mortgagor)
- Tenant (with or without a bona-fide lease)
- Personal Property
It is possible to have multiple Occupants and Occupant types within a home.
Note: Any information obtained regarding tenancy
status must be reported to VRM or military
immediately upon notification, to ensure compliance
with . SCRA and PROTAFA
Occupied - Active Military Status
IF THEN
The property appears to be occupied and in Active Duty military status
The Broker must immediately notify VRM via phone/email, so VRM can verify compliance with the Service members Civil Relief Act (SCRA).
SCRA Verification
IF THEN
There are any Occupant(s) and/or their dependents in Active Duty military status
Contact VRM Asset Manager. No eviction action may be initiated unless approved by the VA.
Before an asset enters the Pre-List phase, an SCRA Verification must be completed.
IF THEN
The asset is deemed completely vacant, with no personal property
The asset will move to Pre-list without SCRA Verification, per Section 501, SCRA Act.
The asset is deemed vacant with personal property
An ‘SCRA Verification’ Task will be triggered in AMS, to either the Eviction Specialist or Eviction Attorney, dependent upon dollar threshold of personal property.
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Must Evict States:
The States and Territories listed below follow the ‘Must Evict’ process for any personal property that is left behind, after an Occupant has vacated.
Regardless of the value of the remaining personal property, the asset is required to go through the Eviction process, in the following States:
State Abbreviation
Alaska AK
Colorado CO
Connecticut CT
Florida FL
Georgia GA
Hawaii HI
Iowa IA
Kansas KS
Louisiana LA
Massachusetts MA
Maryland MD
Michigan MI
Minnesota MN
Missouri MO
North Carolina NC
New Jersey NJ
New Mexico NM
New York NY
Puerto Rico PR
Virgin Islands VI
Guam GU
N. Mariana Islands MP
Rhode Island RI
South Carolina SC
Tennessee TN
Texas TX
Utah UT
Virginia VA
Wisconsin WI
Wyoming WY
Vacant With Personal Property
IF THEN
The property appears to be vacant with personal property items
The Broker/Agent will take
Inventory of the personal property
Interior and exterior photos of the contents
Secure the property
Indicate the existence of the personal property via ‘Enter Occupancy Info’ Task in AMS.
Military articles are present in the property
The Agent will contact VRM Eviction Specialist for further instructions regarding the ‘Military Post & Store’ Notice and off-site storage.
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Post & Store State Matrix:
State Requirements
AL >$300 post and store 30 days
AZ >$100 post and store 30 days
AR >$300 post and store 30 days
CA >$700 post and store 18 days
DE >$500 post and store 14 days
ID >$300 post and store 30 days
IN >$300 post and store 30 days
KY >$300 post and store 30 days *Except Jefferson & Henderson county
ME >$750 post and store 14 days
MS >$300 post and store 30 days
MT >$300 post and store 30 days
NV >$300 post and store 30 days
NH >$300 post and store 7 days
ND >$500 post and store 15 days
OH >$300 post and store 30 days
OK >$300 post and store 30 days
OR >$500 post and store 18 days
PA >$300 post and store 30 days
SD >$100 post and store 30 days
VT >$300 post and store 60 days
WA >$50 post and store 45 days
WV >$300 post and store 30 days
Personal Property will be removed from the property as part of the trash-out process, which is performed by a VRM-approved Preservation Services Vendor.
Post and Store States:
The States listed here follow the ‘Post and Store’ process for any personal property left behind, after an Occupant has vacated.
Personal property in these States must be posted and stored; the timelines and value requirements vary by State.
The ‘Complete Post/Store’ Task will remain open until the “Unit Is Vacant and Has No Personal Property” Option is selected.
When the asset has been verified as vacant and there are no personal items remaining, the Broker will indicate that the “Unit Is Vacant and Has No Personal Property”.
This will close the Post and Store process and the Listing Broker/Agent will be tasked to ‘Enter Initial Broker Inspection.’
* In the state of Kentucky, Jefferson and Henderson Counties follow the Eviction State process, and do not observe ‘Post and Store’.
Exception States:
The following States do not observe “Must Evict” or “Post & Store” requirements.
If the property appears to be vacant with evidence of personal property in excess of $800 resale/thrift value, the Eviction process will be started.
State
Illinois (IL) Nebraska (NE)
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Relocation Assistance / Cash For Keys
If the Tenant or former Owner cooperates, the Eviction process can be shortened or stopped using the Relocation Assistance / Cash for Keys Options.
IF THEN
Non-SCRA Tenant- or Owner-occupied
Cash for Keys will be offered in
the amount of $2,000.
SCRA-occupied by Owner or Tenant
Cash for Keys will be offered in the amount of $3,500.
Vacant
IF THEN
The property appears to be vacant with no evidence of personal property
The Listing Broker will take
Interior and exterior photos of the contents
Secure the property
Complete the ‘Enter Occupancy Info’ Task in AMS, as ‘Vacant’.
Note: Upon Broker’s acceptance of assignment, the task to select a Property Preservation Services Vendor is opened for the Broker to complete. Once occupancy information is provided, preservation services will begin, following the protocol for the specific occupancy type.
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Initial Broker Inspection
The Broker/Agent performs the Initial Inspection
to establish the property condition, accessing the
property and completing the ‘Enter Initial Broker
Inspection’ Task, in AMS.
Environmental Condition
During the Initial Inspection, the Broker/Agent will
also identify any environmental conditions that
exist, such as mold, defective drywall, and dead
animals. Additionally, the Broker /Agent will
complete a visual inspection of the interior and
exterior of the property for deteriorated paint.
Transfer of Utilities
It is the responsibility of the Broker/Agent to
transfer all utilities into his or her name within
three (3) business days of accepting the
assignment or upon vacancy of the asset, if the
property is initially occupied by personal property
and/or occupants. Once utilities have been
transferred, the Broker/Agent will upload utility
account information to AMS.
Title
Upon accepting the assignment, the Broker/Agent
is responsible for obtaining the Foreclosure
Attorney’s name and phone number, and the
foreclosure Sale Date. Once obtained, that
information must be entered into AMS, in the Title
Tab of the Foreclosure Information section.
If the property is a mobile home, the Broker/Agent
is responsible for obtaining the VIN # and
entering it into AMS, in the General Tab of the
Property Information section.
If there has been a ‘No Opinion’ of Title issued by
the VA Regional Counsel, an Asset may close
with a Quit Claim Deed (QCD).
If Title has been ‘Disapproved’ by the VA
Regional Counsel, an Asset may not close. If
there is a Sale Pending, VRM will bust the sale.
HOA Information
As part of the Initial Inspection, the Broker/Agent
will determine if there is an active HOA and will
report the information in AMS.
If there is no active HOA, the Broker / Agent will
indicate that by checking the ‘HOA Does Not
Apply’ box in the HOA section of AMS.
HOA Task Requirement Steps
1. Complete the ‘Enter HOA Information’ Task in
AMS, thoroughly completing all the information
required. This must be completed within 14
calendar days of accepting the assignment.
2. All communications and payment
authorizations must be made through AMS
messaging. Emails and phone calls should
also be documented in AMS Messaging.
3. If an HOA exists, the Broker/Agent must
contact the HOA and get a copy of a current
itemized statement of account or estoppel, and
a copy of the W-9. The itemized statement
must include the date, amount, and description
of all fees charged. The itemized statement
and W-9 must be uploaded into the
Documents section of AMS by clicking the
“Add HOA Information” link in the upper right-
hand corner of the HOA Task page.
4. If you have difficulty with the HOA, please
contact the VRM HOA Coordinator
immediately for assistance and guidance.
The Broker/Agent is preapproved to pay
recurring cycle payments for HOA dues,
however, VRM must approve initial payment
for reimbursement authorization. HOA
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Coordinator will review all payoffs with past
due assessments and provide reimbursement
authorization. Any initial payoff with current
assessments only, will be approved by your
assigned Asset Manager. Recurring cycle
payments will be automatically approved and
tasked through AMS, although it will be
Broker/Agent responsibility to maintain
account.
5. It is the responsibility of the Broker to ensure
HOA assessments are brought current and
maintained. The HOA must be brought current
prior to a new listing going on the Market.
6. If there are Past Due or delinquent HOA dues,
an itemized statement of them MUST be
submitted to the VRM HOA Coordinator for
review via the AMS HOA Module. Payment
authorization of delinquent HOA accounts
must occur prior to any payment being made
by the Broker/Agent.
7. Once all delinquent assessments are reviewed
and approved by VRM, payment authorization
is sent back to Broker/Agent through AMS. It is
the responsibility of the Broker/Agent to follow-
up on payment authorizations and make
appropriate payments to the Association.
8. Once all delinquent amounts have been
satisfied and the HOA account is current, the
Broker/Agent is responsible for making sure all
subsequent assessments that are invoiced
and due are paid in a timely manner. (Pre-
authorization of the current dues is not
required.)
Any penalties, interest and/or fees incurred
after 30 days of receiving the assignment
or, as a result of Broker/Agent inaction, will
be the responsibility of the Broker/Agent
and will not be reimbursed by VRM.
9. If you have any questions, please contact your
HOA/Tax Specialist.
Tax Payment Options
Taxes will be paid only by VRM or VRM’s Tax
Vendor. VRM will not reimburse Broker/Agent for
any taxes paid from their own funds. Do NOT make
any payment of taxes to expedite closing.
If taxes are current, they can be paid on the HUD-1.
(This is immediate option, at Closing.)
To assist with avoiding closing delays, it is
recommended you research property taxes prior to
listing property to determine if there are any taxes
due.
If taxes are due or delinquent, please notify Tax
Coordinator listed in AMS Contacts so payment
arrangements can be made prior to the sale of the
property.
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VRM Property Services Guidelines
Initial Services
The Broker/ Agent selects a local Property Services
Vendor from the list provided by AMS. The Broker/
Agent has 24 hours to make his or her selection
of a Property Service Vendor or the selection will be
handled internally by VRM Vendor Management.
The Broker/ Agent selects a Property Services
Vendor from those available by:
1. Contacting them to confirm they are available to
work on the asset.
2. Scheduling a date and time to meet at the asset,
to initiate the Rekey process.
3. Going back into AMS to ACCEPT the asset “on
behalf of Property Services Vendor.”
For an overview of what tasks are the responsibility
of Broker/Agent, Property Services, or Repair
Vendor, please refer to the Vendor: Who Does What
Chart on page 32.
Rekey In preparation for the Rekey Meeting, the Broker
/Agent needs to:
Print a copy of the ‘VA Initial Services Checklist’
(from the AMS Library) for the Vendor. (See also
page 35.)
Supply all Lockboxes necessary for asset.
Contact Asset Manager for current Lockbox
code. NOTE: the Property Services Vendor is
authorized by VRM to rekey up to six (6) doors.
Inspect the asset to determine if any out-of-
scope work is required.
- If yes, have the Vendor provide a bid for
those services, which Broker / Agent will
submit to VRM. VRM’s approval is
required prior to initiating any out-of-
scope services.
Advise the Property Services Vendor to alert
Broker immediately if, during the course of
servicing the asset, a health or safety hazard is
discovered.
Once the re-key has been completed, Broker inputs
the date of the re-key in AMS.
Once the property has been re-keyed, the Property
Services Vendor has five (5) business days to
complete Initial Services.
REMINDER: Property Services Vendors do not
have access to AMS, thus the Broker / Agent is
responsible for updating the AMS with all initial
and recurring services information.
In advance of the initial Property Services, the
Broker/Agent will leave a ‘VA Initial Service
Checklist’ on the kitchen counter at the asset for
the Property Services Vendor. The Initial Checklist
specifies all in-scope services required, in
conjunction with the Statement of Work (SOW), and
provides the Broker/Agent with a description of the
work to be completed.
The Property Services Vendor is to leave a
completed Checklist for Broker/Agent (on kitchen
counter) after each service. Broker/Agent is to
upload the completed form, with photograph(s)
and/or other documents.
Facilitation of Field Eviction and Moving
Services
Provide eviction and/or moving services as requested and in accordance with local, state and federal laws. Services include labor, materials, storage, and/or dumping fees.
For properties in Redemption or Personal Property Eviction and, in accordance with local law, a ‘Secondary Rekey’ will be requested. Secondary Rekey or Secondary Rekeying refers to the act of changing the lock/rekeying a secondary, not primary, entry point of the asset;
NOTE: Lockboxes are not to be removed or
reinstalled without Asset Manager’s approval.
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generally a backdoor. A lockbox will NOT be placed on the secondary door but, rather, the primary door at a later time.
Personal Property Eviction, Post & Store
and Redemption
Assets that are either listed as Vacant Personal Property Eviction, Post & Store, or Vacant Redemption should have the exterior services done immediately in order to avoid potential City or HOA Violations.
Rekey secondary door, if available. o Do not place a lockbox on properties in
”Must Evict” states with the exception of the following:
- Minnesota
- Iowa (except Polk County) - Connecticut
- Rhode Island
- Wyoming
o Place a lockbox on secondary door in all “Post & Store” states and the 5 states listed above (CT, IA, MN, RI and WY).
Only EXTERIOR services are required. Do not proceed with interior services at this time.
o Exceptions would be to Winterize an asset, to board/secure any openings, or secure personal items from the elements.
o Do not place any winterization signage in the property when it is in one of the above-mentioned statuses (i.e. Post & Store, Redemption, Personal Property Eviction).
Any debris or personal property located on the exterior of the asset should be collected, bagged, and stored in back yard or garage.
Please contact the Property Service Company to reiterate these instructions.
Occupied Assets should not be serviced until vacant.
Initial Inspection.
The Broker/Agent will perform an Initial property inspection, document findings on an Inspection
Report, take supporting date-stamped photos, and upload.
Timeframe: Complete task within two (2) business days of task assignment.
Visual Lead-based Paint (LBP)
Inspections on pre-1978 Houses
The Listing Broker/Agent will conduct a visual inspection of the interior and exterior of the home providing photographic evidence notating peeling and/or chipping paint indicating the possibility of LBP being present.
Timeframe: Complete task within five (5) business days of task assignment.
Winterization, including posting
signs/stickers
The Property Services Vendor will perform all necessary steps to prevent system damage from cold temperatures, including shutting off water supply, draining all pipes, pressure test application of non-toxic antifreeze to plumbing system, noting the date of winterization, and posting the Warning signs. All winterizations will be performed as seasonally and geographically appropriate, typically from October 1st through April 15th. All winterizations will be completed in accordance with local, state and or federal regulations.
Timeframe: Complete within five (5) business days of task assignment.
VRM will NOT winterize boiler, radiant heat, and/or well systems. In Fall and Winter months, starting Oct 1, set thermostat 65 degrees; in Spring and Summer months, starting Apr 15, set thermostat at 85 degrees.
Winterization of sprinkler systems, pools, and/or underground heating systems are out-of-scope. Repairs needed to make these systems operational are also out-of-scope. For more information, see Figure 2, on page 33.
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Subsequent de-winterization for
Inspection and re-winterization after
Inspection.
De-winterization and system check, in preparation of Homebuyer’s Inspection, includes standard de-winterization, noting the date of de-winterization and posting the Warning notice.
Upon completion of the Inspection, the property will be re-winterized within 48 hours. Completion date is to be noted and the Warning sign posted.
Timeframe: De-winterization and system check within three (3) business days of Inspection task assignment. Re-winterization within 48 hours of Inspection completion.
Eliminate health and safety hazards within twenty-four (24) hours of discovery.
Identify all health and safety hazards that exist at the subject property.
A health and safety hazard is defined as any condition that poses an immediate threat to safety and/or well-being, or constitutes a liability risk.
Examples include unsecured pool area, missing handrails, steps, and decking, broken glass / windows, raw garbage, infestations, etc.
A health / safety hazard must be reported
to VRM within 24 hours of discovery.
Timeframe: Complete repair / elimination within twenty-four (24) hours of task notification.
Install handrails.
Installation, per local building code, of missing and/or substandard handrails, where three (3) or more risers and a landing are present.
Existing handrails, however, will not be modified unless the modification is to tighten or stabilize current handrail system.
Timeframe: Within two (2) business days of task assignment.
Secure swimming pools, spas, water
features, and areas, as per local code.
Secure swimming pool, spa, water feature, and associated areas, as per local code, ensuring area fencing is secure, padlocks are installed on up to two (2) gates, and by posting No Trespassing signs supplied by Broker/Agent
Timeframe: Within twenty-four (24) hours of discovery.
Securing, boarding, and/or re-glazing windows, when necessary.
Ensure all windows are secure, replacing lock mechanism or installing slider locks, if necessary.
Boarding is defined as securing any unsecured opening that cannot be secured by normal means.
Boarding prevents unlawful access, exposure to the elements, and to be in compliance with local, state, or federal laws.
Window ‘glazing’ is the actual glass part of a
window. The act of replacing glass is known as
“re-glazing”. Reglazing (replacement of glass) will
only be completed if it is the required method of
local ordinance. In-Scope re-glazing is on one
pane of glass measuring 16’’x 12’’ in overall size.
Timeframe: Within two (2) business days of task assignment.
Interior and Exterior Debris Removal, up
to forty (40) cubic yards.
Removal of interior and exterior debris, up to forty
(40) cubic yards, including debris in all sheds and
out buildings. For more information, refer to the
Cubic Yard Dimensions Chart.
NOTE: If a health/or safety hazard exists, a
Release and Hold Harmless Agreement may
be deemed necessary by the Asset Manager.
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Special Disposal of Interior and Exterior
Debris.
Any items that require special disposal, as
required by applicable law, will be considered an
out-of-scope service (i.e., paint cans, oil, tires,
methamphetamine labs, drug paraphernalia,
weapons and/or explosives, etc.).
Fees for Out-of-Scope Work: Fees for debris
removal in excess of forty (40) cubic yards will be
bid at a rate of $35.00 per cubic yard.
For instances where subsequent debris is
dumped on-site, an additional fee of $35.00 per
cubic yard will apply.
VRM review and approval will be required for any
other special disposals, prior to initiating disposal.
Trash-Out for Scheduled Lock-Out.
An exception for the bid submission requirement
can be applied on all excessive debris removal
associated with a scheduled Lock-Out. The
Preservation Services Company will need to
provide the Eviction Specialist and the
Preservation Repair Specialist with photographs
and documentation supporting the excessive
debris invoice. Payment of the submitted invoice
is contingent on supplying supporting
photographic documentation of the debris
removed and approval from the Preservation
Repair Department.
Removal of One Vehicle.
The extraction of one standard, abandoned vehicle is limited to a car, truck, ATV, or personal water craft.
All removal(s) will be completed in compliance with local, state and/or federal law.
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Graffiti Abatement.
Prime, paint or chemically remove graffiti - writings, drawings, painting from all interior and/or exterior walls, ceilings, floor, or concrete.
Every effort will be made to match existing color to enhance the overall aesthetics of the asset.
If a chemical removal system is required, VRM will make every effort to ensure a uniform appearance.
Smoke Detectors and all detection devices required by law.
Verify that all smoke and carbon monoxide
detectors are present and in working order, in
accordance with local laws. Replace, as needed,
and ensure in working order, including installation
of batteries, if needed.
Pest Control (not to include termite or
wood-destroying organism treatment).
Pest control is described as a one-time or on-going chemical application to treat and cure infestation risk, such as cockroaches, ants, spiders, rodents, snakes, or other commonly-known insects or pests.
Ready-to-Show Services.
Ready-to-Show services include removal of all
interior and exterior debris; and, cleaning to
include: appliances, cabinets inside and out,
sinks, tubs, showers, toilets, sweep and mop
floors, and carpets; clean all rain gutters and
downspouts; clean windows (interior and exterior)
and mirrors, and deodorize by installing air
fresheners, and vacuum, steam clean/shampoo
carpet.
All light fixtures and ceiling fans will be cleaned
and have operational light bulbs, plate covers and
wires capped.
Exterior cleaning includes sheds and
outbuildings.
Initial Lawn Service up to 15,000 sq. ft.,
Shrub Trimming, and Grounds
Maintenance.
Initial lawn maintenance, described as the initial lawn cut, includes cutting, weeding, edging, trimming, blowing, removal of clippings and yard waste.
Standard bi-weekly services include a lawn up to an area of 15,000 square feet, including front, back, and side yards.
Prevention of further Moisture Damage.
Assess property for moisture content and damage, provide a bid to correct and eliminate damage, and install a dehumidifier, in accordance with the amount of moisture content, size of area, and other mitigating factors.
Sump Pumps and Pump-Outs.
Identify if there is a sump pump and if the sump pump is operational. If the cause of a water issue is a non-operational sump pump, replacement of up to one sump pump will be performed, in conjunction with a pump-out.
Roof Repairs (Patching and Tarping only).
Resolve roof leaks either by patching or tarping, as a temporary measure, to help mitigate damage until a permanent, corrective maintenance plan can be formulated by the Asset Manager.
Cover Electrical Service Panel and Outlet
Covers.
Electric service panel and outlet covers that warrant immediate repairs by a licensed electrician will be assessed and estimates for necessary electrical repairs submitted.
All plate covers are to be replaced and exposed wires capped.
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Asset Temperature Settings.
Because of the nature of boilers, radiant heating systems, etc., temperature settings are especially important. For this reason, the thermostat of each asset should be set as follows:
Fall & Winter months, starting Oct 1: Set thermostat at 65 degrees
Spring & Summer months, starting Apr 15: Set thermostat at 85 degrees
Recurring Services
Routine Inspections and Property Services.
On-going maintenance is completed by the
Property Preservation Vendor on a Bi-Weekly /
every 14 calendar day basis using the blank Bi-
Weekly Checklist left on the kitchen counter by
the Broker/Agent. The Checklist provides the
Broker / Agent and Property Services Vendor with
a description of each service that must be
performed every 14 calendar days.
Copies of the Bi-Weekly Checklist can be found
in the AMS Library and a copy is on page 36 of
this Guide.
The on-going maintenance work is verified by the
Broker/Agent during his or her routine, monthly
property inspections of both the interior and
exterior, which confirm the property is secure,
identify its condition, and any issues that might
need to be addressed.
Once the Broker /Agent verifies completion of
Initial and Bi-Weekly property services, he or she
leaves a blank copy of the Checklist on the
kitchen counter for the next bi-weekly service.
Re-Inspections, Habitability Inspections,
Repair Inspections, as needed.
Re-inspection, Habitability Inspections and Repair
Inspection, as requested, and in accordance with
Investor compliance and/or city, state, or other
federal regulation. All forms and data collection
points will be submitted to Asset Manager for
approval.
Recurring Janitorial Maid Refresh.
Recurring cleaning service shall include: clean
appliances and cabinets inside and out, clean
toilets, mop floors, vacuum floors and carpets,
and clean windows, as needed. All light fixtures,
interior and exterior, and ceiling fans shall be
cleaned and have non-operational light bulbs
replaced. Smoke and carbon monoxide detectors
shall have operational batteries installed, and
detectors must be inspected to ensure they are in
working condition.
Securing and Boarding, as a result of
vandalism.
Boarding is defined as securing any opening that
is unsecured and cannot be secured by normal
means. Boarding will be completed to prevent
unlawful access, exposure to the elements, and
in accordance with local, state, or federal laws.
Reglazing (replacement of glass) will only be
completed if it is the required method of local
ordinance.
Bi-Weekly Lawn Cut, up to 15,000 sq feet.
Bi-weekly lawn maintenance, as seasonally and
geographically appropriate. Lawn maintenance
shall include: cutting, weeding, shrubs trimmed,
clippings and incidental debris removed from the
property.
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Snow/Ice Removal, in compliance with
local laws.
As seasonally and geographically appropriate,
snow/ice removal services will be completed by
shoveling and/or removing snow/ice from
sidewalks, steps to main point of access, and
driveways, to help prevent fall/ injury while
remaining in compliance with local, state, or other
guidelines. Snow removal from roof is considered
out-of-scope.
Salting for Ice Storms.
The application of salt/sand, to help prevent
fall/injury, while remaining in compliance with
local, state, or other guidelines.
Repairs, as needed, based on the results
of Routine Inspections.
As necessary, secure pool area, replace missing
hand rails, steps, and decking, repair/secure
broken glass/windows, remove raw garbage,
abate infestation risks, and eliminate or identify
any other health and safety concerns not
previously mentioned.
Repairs
Repairs vs. Preservation
Repairs are defined as work done to the property
that will add to market value, as opposed to
maintenance work, such as removing trash or
providing lawn service.
Repair Bids
Repair bids are obtained through the
Broker/Agent’s Contractor(s) and must be
uploaded in AMS, for review by the Asset
Manager.
All repair bids, regardless of dollar amount,
MUST be uploaded into the Repairs tab within
AMS.
Repair Bid Threshold Requirements
1 Bid < = $2,500
2 Bids > $2,500 < = $10,000
3 Bids > $10,000
Approval of Repairs
If repairs are approved in conjunction with the
Initial Market Strategy, oversight of completion of
the repairs is coordinated by the Listing Broker /
Agent, Asset Manager and/or Associate Asset
Manager. Once the Listing Broker/Agent reports
completed repairs, asset proceeds to List.
Photographs are required prior to bid approval.
Upload those photos in either the bid or the
Documents tab within AMS. Photos may be
uploaded in ‘.jpg’ format.
All Bills Paid Affidavit & Release Requirement
All capital repair bids require an All Bills Paid
Affidavit & Release (AMS Library) executed
by the Contractor performing trades, prior to VRM
approval. Repairs cannot begin or be approved
until a copy of the signed Affidavit has been
uploaded into the Document section of AMS.
Repairs needed based on the results of
routine inspections
Repairs discovered during Inspections may
include mold abatement /removal, repair of
structurally unsound assets, fire, smoke, and/or
water damage, risks caused by natural disaster,
vandalism, underground storage containers,
hazardous spills, and/or environmental issues.
Any out-of-scope repairs require a bid.
Timeframe: Within 24 hours of discovery or
notification.
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Sale-Contingent Repairs
Sale-Contingent Repairs are repairs required by the
lender or requested by the buyer prior to final loan
approval and funding the loan. Sale-Contingent
Repairs could include Lender-Required Repairs and
Buyer-Contingent repairs.
Lender-Required repairs could result from the
appraisal, inspection, or BPO, revealing inadequacies
in the condition of the home. Examples of such
inadequacies could include health and safety issues,
structural problems, zoning violations, or anything
affecting the functional use of the home that could
prevent loan approval.
Buyer-Contingent Repairs could include In-Scope or
Out of Scope repairs that were originally not
approved by VRM but are expressly requested by the
buyer. The costs for Buyer Contingent Repairs will
be negotiated into the final sales price of the property.
All Sale-Contingent Repairs will be uploaded into the
Buyer-Contingent Repairs tab, which will house both
a sub-tab for the lender-required repairs and buyer-
contingent repairs.
The Broker/Agent will provide the following for all
Sale-Contingent Repairs:
1. The required number of bids entered into
AMS for review.
2. A copy of the Contractor’s License & General
Liability Insurance.
3. ‘Before’ photos of the area(s) of work to be
addressed.
4. The appraisal and/or the Underwriter
Condition Report showing lender required
repairs.
5. Additional lending institution documents and
industry standard documents.
6. An executed VRM All Bills Paid and Release
of Liens Affidavit signed by the Contractor.
Once the repairs are completed, the Broker/Agent is
responsible for providing ‘After’ photos and
uploading them into AMS. The photos will be kept in
the Documents tab in AMS.
The Broker/Agent will complete the Lender-Required
Repair task, in order to move the asset to closing.
Emergency Repairs
Definition of Emergency Repairs
In the event a property is in imminent risk of
further damage, due to vandalism or natural
causes, the Broker may be authorized to perform
preventive services, to mitigate further
damage. Such repairs are to abate the damage
only and are NOT to include any of the actual
repairs that may be necessary. Supporting
photographic documentation of the damage and
mitigation is required prior to invoice
reimbursement.
Type of Emergency Repairs
Emergency Repairs are applicable only on
expense line items:
3.1.17 - (Boarding and/or re-glazing windows)
3.1.25 - (Prevent further moisture damage)
3.1.27 - (Roof Repairs - Patching/Tarping only)
Emergency Repair Reimbursement
As with all invoicing, emergency repair invoices
are to be submitted through LPS.
Escalation Issues
If the services being provided are not up to VRM
standards or, if you are having issues with the
work, please contact your Asset Manager so
VRM can assist.
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Listing Property
Broker Price Opinion
Order Initial Broker BPO
AMS will task the Listing Broker/Agent to ‘Complete
an Initial BPO’ after Initial Services have been
completed. The Listing Broker/Agent has five (5)
business days to complete the BPO.
The BPO will include three (3) Comps and ten (10)
photographs, one photo each of the front of each
asset, the remainder of the photos of the rear,
street, address verification, each room, and any
repairs needed.
Upon completion of the BPO, the Broker will
complete the ‘Enter Listing Broker BPO’ Task in
AMS.
Developing the Marketing Strategy
Once the Estimated Market Value is established by
the Asset Manager, he or she prepares a property-
specific Marketing Strategy based on information
provided in the appraisals, BPO, and comparison of
the estimated recovery if selling the property “As-Is”
versus Repaired.
Create Listing Agreement (Broker/Agent)
Completion of the’ Market Strategy’ Task triggers
the Broker/Agent to ‘Accept Listing Agreement’
Task, entering Asset information, photos, and the
following VA-mandated wording in the MLS Private
Remarks:
“VA does not pay customary closing costs,
including title, escrow fees, survey, or transfer
fees unless otherwise negotiated in Offer”
The Broker/Agent shall also include in the MLS
Private Remarks any health and safety restrictions
to viewing the property.
Upon Listing, the following resources will be utilized
by the Listing Agent to market VA REO properties to
potential buyers:
Local MLS (where available)
Listing Broker/Agent-specific sites
Other sites, such as Realtor.com, Yahoo, Trulia,
etc.
Confirming MLS (Asset Manager)
Once Broker/Agent submits MLS Listing and photos
thru AMS, the Asset Manager is tasked with ‘Confirm
MLS.’ If the Marketing description and/or Marketing
photos are not acceptable, the Asset Manager rejects
the MLS and the task is fired again for the Broker /
Agent to complete.
If Broker/Agent is unsure about any marketing
information to be uploaded to the MLS, please
contact the Asset Manager to discuss.
Holding For Offers
The VA requires a 48 hour HOLD on each listed
asset before offers can be presented. Upon
acceptance of the MLS by the Asset Manager, the
Asset status automatically changes to HOLDING
FOR OFFERS in AMS and no offers can be entered
for 48 hours.
Monthly Marketing Report
The Listing Broker/Agent provides a Monthly
Marketing Report (MMR) every 30 calendar days
through AMS. The MMR includes a summary of
showings and offer activity, relevant developments
in the local market, and reaction to the property and
pricing from other agents and potential buyers.
Additionally, the MMR must contain a minimum of
two (2) recent, listed and sold comparables, to
support the suggest market value.
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Updating BPO and Appraisal
An updated BPO will be completed by the Broker /
Agent every 90 days on the market. Updated
BPOs must use recent listed and sold comparables
and include updated interior and exterior photos of
the subject.
An updated Appraisal is required at 180 days on
market for properties listed at $100,000 or
greater.
Reassigned assets require an updated BPO from
the new Broker/Agent, regardless of days on
market.
List Price Reductions
The Asset Manager’s objective is to update the
Market Strategy as conditions change with respect
to the property’s marketability.
Adjusting to the most current information available
provides a competitive advantage in the Market.
Price reductions received by the Broker/Agent must
be updated within 24 hours in the MLS and other
referenced sites.
Sales Negotiations
NOTE: The choice of Title and/or Escrow
Office(s) is entirely up to the Buyer.
ALSO NOTE: The Seller does not pay Title
policy, Title fee, and/or any Escrow fees.
Submitting Offers
With the exception of the initial, mandatory, 48-
hour hold, it is the duty and responsibility of the
Broker/Agent to present all complete offers
received to the Asset Manager within one (1)
business day of receipt.
Offers must be submitted through AMS for
eligibility and consideration. Offers submitted
outside of AMS will automatically be rejected by
the Asset Manager.
The Broker/Agent is responsible for ensuring all
offers are supported by a valid and complete,
executed contract, defined as follows:
Buyer signed purchase contract with sales
price, close date, and special provisions.
Verification of Funds/Pre-Approval Letter.
Submitted thru AMS.
In the ‘Offers’ tab:
The Broker/Agent will be tasked to ‘Submit Offer’.
Enter the number of offers to be input. If more
than one*, you will be prompted to enter the
additional offers once the first is completed.
* When submitting multiple offers, refer to the
Multiple Offers section below.
Conflict of Interest
The following sales require approval of a VRM
Senior Operations Manager and the VA:
Sales to previous Mortgagors, as well as their
family members or relatives.
Sales to VA Employees.
Sales to the following individuals are NOT
allowed:
Buyers who are affiliated with the VRM Listing
Broker/Agent or other VRM REO Vendor.
Buyers who are VRM Employees or their
spouse or relatives.
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Multiple Offer Process
When multiple offers are received by the Listing
Broker/Agent, he or she will immediately initiate
the Multiple Offer process. All prospective
Buyers must be notified of a multiple offer
situation and encouraged to present their Highest
and Best offer for the Seller’s consideration.
The Broker/Agent must supply all Buyers with
the Multiple Offer Form (AMS Library) for
signature.
All Buyers are given a two (2) business day
expiration period, in which to present their
highest and best offer to the Listing Broker
/Agent, including a valid and complete
executed contract.
Additional offers received during an existing
multiple offer process must be a highest and
best offer and are subject to the in-process
expiration period.
Upon input of all responses to the request for
highest and best offer, the Asset Manager will
review all offers and proceed accordingly.
The Asset Manager may request another round
of multiple offers, accept an offer, or negotiate a
single offer.
Evaluating Offers
The Asset Manager is tasked to ‘Respond to
Offer’ within one (1) business day of
submission. He or she must counter, decline, or
accept an offer.
Acceptance of Offer and Disclosure
Upon acceptance of an offer, the Broker/Agent is
tasked through AMS to ‘Submit Contract
Package’. The Contract package must include the
following:
Buyer-signed State Contract with sales price,
close date, and special provisions.
All applicable Disclosures and VA Addendum.
Buyer-signed VA Addendum, Sellers
Disclosure, and Mold/Radon Disclosure (AMS
Library).
Proof of Funds/Pre-Approval Letter.
Copy of Earnest Money Deposit.
Incomplete or inaccurate contract package will be
rejected. To prevent delays in processing
and/or closing, Broker/Agent is encouraged to
carefully check the entire set of documents,
disclaimers, etc.
Renegotiation of Offers
Renegotiation of an Offer, based upon Buyer
inspections and/or Lender requirements, is
subject to Asset Manager-approval and must be
submitted by the Listing Broker/Agent through
AMS.
Lender-required repair requests submitted to the
Asset Manager for consideration must include the
following:
Lender verification of the repair requirement.
Copy of Appraisal section indicating the required repair(s).
Bids to complete the repair(s). (Please refer to Repair Bids, for details.)
Photos (Before Photos)
Buyers requesting Lender-required repairs should
be ready and willing to increase the sales price by
the amount of the requested repairs.
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Closing
PLEASE NOTE: Buyer is free to use the
same Closing Agent as Seller, which may
expedite Closing.
Closing On Schedule (Broker/Agent)
1. Submit Earnest Money
A. Once the executed contract has been
received, the Broker/Agent must submit the
Earnest Money to the Buyer’s Closing Agent.
Once Earnest Money has been submitted,
the Broker/Agent must complete the ‘Submit
Earnest Money’ Task in the Closing Module
of AMS Contract Package tab, entering the
date the money was submitted to the
Buyer’s Closing Agent.
2. All of the following Tasks are in the
Closing Module, Execution tab
A. Complete Inspection Contingency
In the Inspection tab, the Broker/Agent must
complete the Task by using the dropdown,
answering ‘Yes’ or ‘Waived’ for Inspection
Completed.
If ‘Yes’, the Broker/Agent must enter the
date inspection was completed.
B. Confirm Appraisal
In the Appraisal tab, the Broker/Agent must
complete the Task by using the dropdown,
answering ‘Yes’ or ‘Waived’ for Appraisal
Completed.
If ‘Yes’, the Broker/Agent must enter the
date appraisal was completed.
C. Confirm Loan Approval
In the Loan Approval tab, the Broker/Agent
must complete the Task by using the drop
down menu for Finance type. For all
financing types except Cash, complete the
fields including: Loan Approval Confirmed,
Loan Amount, Loan Interest Rate.
Closing Not On Schedule (Broker/Agent)
1. Submit Earnest Money
A. Once the executed contract has been
received, the Broker/Agent must submit the
Earnest Money to the Buyer’s Closing Agent.
Once Earnest Money has been submitted,
the Broker/Agent must complete the ‘Submit
Earnest Money’ Task in the Closing module,
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Contract Package tab by entering the date
the money was submitted to the Buyer’s
Closing Agent.
2. All of the following tasks are in the
Closing Module, Execution Tab
A. Complete Inspection Contingency
In the Inspection tab, the Broker/Agent must
complete the Task by using the dropdown,
answering ‘Yes’ or ‘Waived’ for Inspection
completed.
If ‘Yes’, the Broker/Agent must enter the
date the inspection was completed.
B. Confirm Appraisal
In the Appraisal tab, the Broker/Agent must
complete the Task by using the dropdown,
answering ‘Yes’ or ‘Waived’ for ‘Appraisal
Completed.’
If ‘Yes’, the Broker/Agent must enter the
date the Appraisal was completed.
C. Confirm Loan Approval
In the Loan Approval tab, the Broker / Agent
must complete the Task by using the drop
down for Finance Type.
For all financing types except Cash, the
remaining fields must be completed,
including; Loan Approval Confirmed, Loan
Amount, Loan Interest Rate.
3. Amending the Offer
Any and all amendments must go through the
Asset Manager. The VA-Amendment Form is
located in the AMS Library.
Close Date Extensions
Once the Broker/Agent has the Buyer’s signature(s),
the Broker/Agent must complete the following steps
in AMS, to complete the Task.
Enter revised Close date.
Use dropdown to enter Reason: if reason is
‘Other’, the Comment Section must be
completed.
Upload the completed VA-Amendment form to
AMS.
Sale Fall-Through (Broker/Agent)
1. The Broker/Agent must message the
Asset Manager to alert him/her the Buyer
wishes to cancel the sale.
A. The Broker/Agent must get Buyer to complete
and sign the Termination and Release form,
located in the AMS Library.
B. Once form has been signed, the Broker/Agent
must upload the Termination and Release form
to AMS.
Closing On Schedule (Closing Agent)
1. Confirm Earnest Money for Closing
Vendor
A. Once the Contract is accepted, the Closing
Agent completes the ‘Submit Contract to
Closing’ Task.
Once the Earnest Money has been
submitted by the Broker/Agent, the Closing
Agent will complete the ‘Confirm Earnest
Money’ Task. The Closing Agent will
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confirm that the Earnest Money Deposit has
been deposited with the Buyer’s Closing
Office and enter the date confirmed, to
complete the ‘Submit Earnest Money’ task.
B. Once the ‘Submit Earnest Money’ Task is
completed by the Broker, the ‘Submit HUD
Form’ Task will become available.
2. Submit HUD and Deed
The ‘Deed’ Task opens when Contract is
‘Accepted’.
A. Once the Closing Specialist reviews and signs
the Deed, he or she uploads the Deed and
overnights it to the Closing Agent.
Once the Deed is received by the Closing
Agent, he or she overnights the Deed to
have it recorded.
B. The Closing Agent enters the HUD data and
sends the HUD to the Closing Specialist for
approval and signature, through Messaging.
Once the Closing Specialist receives the
HUD, he or she reviews, approves, and
signs the HUD, then uploads it into both
Documents and Messages. (A copy of the
HUD is overnighted when applicable, based
on territory.)
C. Closing Agent sends signed HUD and Deed to
Buyer’s Closing Agent for Closing.
Closing Agent should monitor and follow-up
on Closing, to ensure a copy of the Seller
and Buyer HUD and wire confirmation are
received.
3. Submit Final Closing Package
A. Once the Asset has closed and proceeds have
been submitted, the Closing Agent completes
‘Submit Final Closing Package’ Task and
uploads Closing Package documents.
Closing Agent monitors that the asset is
listed as ‘Closed,’ in AMS.
Closing Agent will receive a Closing Report
from VRM. Closing Agent will follow-up with
Buyer’s Closing Agent on all assets listed as
‘HUD Approved but Wire Not Received by
VA’ on Wire Status, and update VRM
Closing Specialist.
Closing Agent should monitor and follow-up
on assets the VA is NOT reporting wires
received within three (3) business days of
Closing.
Closing Not On Schedule (Closing Agent)
1. Confirm Earnest Money for Closing
Vendor
A. Once the Contract is accepted, the Closing
Agent completes the ‘Submit Contract to
Closing’ Task.
Once the Earnest Money has been
submitted by the Broker/Agent, the Closing
Agent will complete the ‘Confirm Earnest
Money’ Task. The Closing Agent will
confirm the Earnest Money Deposit has
been deposited with the Buyer’s Closing
Office and enter the date confirmed, to
complete the ‘Submit Earnest Money’ Task.
B. Once the ‘Submit Earnest Money’ Task is
completed by the Broker, the ‘Submit HUD
Form’ Task will become available.
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2. Submit HUD and Submit Deed
A. Once the Closing Specialist reviews and signs
the Deed, he or she uploads the Deed and
overnight it to the Closing Agent.
Once the Deed is received by the Closing
Agent, they overnight the Deed to have it
recorded.
B. Broker manages Asset Extension process
The Closing Agent and Closing Specialist
should monitor and follow-up with the
Broker/Agent when a Contract expires.
See” Amendment” Section under Closing
not on Schedule (Broker/Agent).
C. The Closing Agent enters the HUD data and
sends the HUD to the Closing Specialist for
approval and signature, through Messaging.
Once the Closing Specialist receives the
HUD, he or she reviews, approves, and
signs the HUD, then uploads into both
Documents and Messages. (A copy of the
HUD is overnighted, when applicable based
on territory).
D. Closing Agent sends signed HUD and deed to
Buyer’s Closing Agent for Closing.
Closing Agent should monitor and follow-up
on Closing when necessary to insure a copy
of the Seller and Buyer HUD and wire
confirmation are received.
3. Submit Final Closing Package
A. Once Asset has closed and proceeds have
been submitted, the Closing Agent completes
‘Submit Final Closing Package’ Task and
uploads Closing Package documents.
Closing Agent monitors that the Asset is
listed as ‘Closed’ in AMS.
Closing Agent will receive a Closing Report
from VRM. Closing Agent will follow-up with
Buyer’s Closing Agent on all assets listed
as, ‘HUD Approved but Wire Not Received
by VA’ on wire status and update VRM
Closing Specialist.
Closing Agent should monitor and follow-up
on assets VA is not reporting wires received
within three (3) business days of Closing.
Sale Fall Through (Closing Agent)
1. Termination and Release
a. Once the Broker/Agent gets the Buyer to
complete and sign the Termination and
Release form, the document is submitted to
the Asset Manager to complete the ‘Complete
Release of Earnest Money’ Task. The Asset
Manager then executes the Termination.
The Closing Agent verifies that all funds
have been released to the respective party
and completes the ‘Release Earnest Money’
Task. The Date Released is entered and
submitted and the task goes back to
‘Awaiting Offer’ Task status.
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Vendor Invoicing
Expedite reimbursement payments and avoid
invoice returns for correction by following these
Guidelines. Please don’t hesitate to contact VRM
Accounting if you have any problems.
VRM only processes Broker/Agent reimbursements
through LPS Invoice Management.
VRM is listed as a Servicer on the dropdown menu
in LPS Invoice Management. In the Servicer drop-
down, select Vendor Resource Management - GOV.
In the event you are reimbursed for an expense that
is ultimately deemed non-reimbursable by our client,
VRM will deduct the non-reimbursable amount from
a future reimbursement.
For security and speed of processing, ACH Direct
Deposit is the preferred method of payment.
General Notes
To improve the security around reimbursement, all
reimbursements will be made payable to the
Brokerage firm and mailed to the mailing address on
record in the Vendor Management database (VMS).
For any information regarding the VMS database,
please contact the Vendor Management Team.
IT IS IMPORTANT THAT YOUR E-MAIL
ADDRESS IS CORRECT IN LPS, as that is the
address used to contact you regarding any
problems with your invoices.
All attachments must be sent in PDF format.
No more than seven (7) line items per invoice
and each line should have only the supporting
documentation attached for that line item.
VRM Accounting will contact you through LPS
with any issues regarding invoice submission.
Be advised that any Resolution sent to you must
be resolved within one (1) business day unless
otherwise stated, or the invoice will be denied.
Denied invoices can be resubmitted once the
correct information has been acquired, as long
as it is not past 30 days after the disposition
date.
Please ensure you use the correct Submission
Categories in LPS. For example, Electric bills
need to be placed in the Electric Bill subcategory
and not “Utilities Other”. Please refer to the LPS
Expense Category Mapping document for
Category / Subcategory requirements.
Please do not submit duplicate entries as these
delay future reimbursements.
Proof of payment is required for reimbursement.
All line items must have Completion date.
Unit number MUST be on all bills for multi-unit
assets.
For VA assets, Vacant Property Registrations
(VPR) are NOT reimbursable. Please do not pay
for a Vacant Property Registration. Contact your
Asset Manager for more information on this.
LPS Submission Categories
To expedite your reimbursement, use an LPS
Subcategory that matches your expense type.
For example, a GAS bill needs to be coded to
the ‘Utility – GAS subcategory.’
Submissions coded incorrectly will be
returned to you for correction.
CITY INSPECTIONS need to be coded to
subcategory ‘CITY INSPECTION’.
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LPS Submission Categories (Cont.)
WATER and SEWER bills are both coded to
subcategory ‘WATER;’ they do not need to be
broken out on separate lines.
If the Utility Bill is for more than one type of
service, all service types must be listed as
separate line items in LPS.
Bill Submission Dates
Invoices should be submitted on a regular basis,
not accumulated until the asset closes. The final
deadline for any invoice submission is 30
days after the closing of a property.
Invoices submitted after this deadline will be
denied in LPS Invoice Management. In some
instances, there may be some Utility Final Bills
that have not been received by this deadline.
Final Utility bills are due within seven (7) days
from the date of the invoice. To expedite
reimbursement for Utility Final Bills only, email
VRM Accounting at [email protected]
with the REO # and submitted invoice number so
Accounting may review and process your invoice
timely.
No tolerance will be given, however, for
submission of Repair and Non-Final Utility
bills beyond 30 days after closing a
property.
VRM recommends you submit your bills as you
pay them.
‘Date’ must be the date actual service was
performed, not the date ordered.
Make sure actual service dates are noted on bills
from vendor before attaching them to your
invoices.
Re-Key Submission Notes (Broker/Agent)
Secondary rekeys (i.e. greater than 6 rekeys done
by Property Preservation Services Vendor) require
approval documented in AMS prior to rekey(s) being
done. Rekey invoices should be noted with the
same actual service date you entered into AMS for
the rekey date.
Subsequent lock changes will be billed at the rate of
$40 each if the maximum number of locks has been
used. (See the VRM-VA Property Preservation
Expense Delegation Matrix for approval levels.)
A ‘Subsequent Rekey’ refers to the process of
rekeying all locks on an asset again. This will
generally be done when the original key has been
stolen or misplaced.
Repairs
All repair invoices require an approval,
documented in AMS, prior to initiating.
Capital Repairs need to be listed on an approved Market Strategy prior to the initiation of the service.
Notes on VRM Approvals
Bids will be submitted for approval prior to
initiating.
Approvals need to be for exact amount of each
line item or invoice if only one line item. (Sales
tax needs to be included in any approval.)
All approvals must be obtained and documented
in AMS prior to work being done.
Approvals needed in AMS for:
Evictions, including Moving and Storage.
Repairs, including capital repairs.
Emergency Repairs need to have before and
after photos uploaded to AMS.
mailto:[email protected]
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Late Utility bill and late fees on Utilities bills need
to be approved by Asset Manager.
Property Preservation Expenses (i.e. board-up,
carpet removal, sump pump, winterize, yard
maintenance, discoloration removal, etc.) need
approval from Asset Manager.
NOTE: For In-Scope Property Preservation Services
work, justification is required that VRM Property
Preservation Services vendor could not complete
work within 24 hours and work needed is emergency
in nature, in order to prevent further damage to
property.
Repairs and Capital Improvements In Excess of
VA Guidelines ($10,000):
All repairs over $10,000 per bid are submitted for
approval before work is authorized by the Asset
Manager. That approval must be documented in
AMS.
The invoice must be for the exact amount of the
approval.
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CONTACT INFORMATION:
VRM Accounting: [email protected]
Vendor Management: [email protected]
Vendor Management System Support:
LPS Invoice Management Customer Support:
(904) 854-5462
VRM Title: [email protected]
Property Preservation Services & Repairs:
Mr. Chris Gary - [email protected],
(972) 232-3494.
Veterans Crisis Line: (800) 273-8255 (Press 1)
GLOSSARY:
AAM I - Associate Asset Manager I
AAM II - Associate Asset Manager II
ABP - All Bills Paid Affidavit
AM - Asset Manager
AMS - Asset Management Systems (AMS)
BPO - Broker Price Opinion
CFK - Cash for Keys
DOD - Department of Defense
DOM - Days on Market
KYO - Know Your Options
LPS - Invoice System
LRP - Learning Resource Portal
MMR - Monthly Marketing Report
PP - Personal Property
PROTAFA - Protecting Tenants at Foreclosure Act
PTSD - Post-Traumatic Stress Disorder
QCD - Quit Claim Deed
REO - Real Estate Owned
SCRA - Service Members’ Civil Relief Act
VA - Veterans Affairs
VMS - Vendor Management System (AMS)
AMS - Vendor Resource Management System
(combines VMS and AMS Systems)
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
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VENDOR: Who Does What?
Vendor Occupied Vacant with
Personal Property Vacant
Broker/ Agent Weekly Occupancy
Inspection
Weekly Inspection
Weekly Inspection
Provide lockbox and code
Utilities (Electricity, Water, etc.)
Personal Property: Hazard value determination
Assessment & Eviction Provide blank PSC Service Checklists (kitchen counter)
BPO
Property Preservation Instructions
Listing
Marketing
Property Services Company (PSC)
N/A
Rekey Secondary Door Rekey asset
Lawn service Trash-Out (40 cubic yards of debris)
Snow removal Winterization, De-winterization, Re-winterization
Ice treatment Lawn Service
Snow removal
Winterization (Vacant Redemption only)
Ice treatment
On-going Maintenance
3rd Party Repair Vendor
N/A N/A Repairs
Figure 1 – Vendor: Who Does What?
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VRM Winterization Schedule
States Winterization Timeline
AL, AZ, CA*, FL*, GA, LA, MS, MO,NM, NC, OK, SC, TX* Winterize October 1-April 15
AK, AR, CO, CT, DC, DE, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MT, NE, NV, NH, NJ, NY, ND, OH, OR, PA, RI, SD, TN, UT, VT, VA, WA, WV, WI, WY
Year round Winterization. Winterize immediately upon determining asset is vacant regardless of time of year.
Caribbean, Guam, Hawaii, N. Mariana Islands., Puerto Rico, Virgin Islands
No Winterization in the these locations
*Select counties in CA (Los Angeles, Orange, Riverside, San Diego, Imperial) *Select counties in FL (Orange, Pinellas, Hillsborough, Polk, Osceola, Brevard, Indian River, Manatee, Hardee, Desoto, Sarasota, Highlands, Okeechobee, St. Lucie, Martin, Charlotte, Glades, Lee, Hendry, Palm Beach, Collier, Broward, Monroe, Miami-Dade), *Select counties in TX (Kinney, Real, Uvalde, Medina, Bandera, Maverick, Zavala, Frio, Dimmit, LaSalle, Webb, Zapata, Bexar, Comal, Guadalupe, Wilson, Waller, Harris, Jefferson, Karnes, Fayette, Austin, Colorado, Gonzales, Lavaca, Wharton, De Witt, Jackson, Fort Bend, Brazoria, Galveston, Chambers, Matagorda, Calhoun, Victoria, Goliad, Bee, Refugio, Aransas, San Patricio, Nueces, Jim Wells, Atascosa, McMullen, Duval, Live Oak, Kleberg, Jim Hogg, Brooks, Kennedy, Kleberg, Starr, Hidalgo, Willacy, Cameron)
No Winterization in the these counties listed and highlighted on the maps below
Figure 2 – Winterization Schedule
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Figure 2 - Winterization Schedule
Figure 2 – Winterization Schedule
Figure 2 – Winterization
Figure 3 – Animal Abandonment
Animals Abandoned in Foreclosure
Animals are sometimes abandoned in difficult times. Foreclosures are no exception. VRM strongly
encourages its Vendor Partners to anticipate and plan for such possibilities by developing a strategy
acceptable to local Animal Control Offices, to assist with the successful rescue of abandoned animals
inside a home or outside, on the property.
At Occupancy and subsequent Inspections, you are asked to check for animals.
If entry into the house is not legally allowed, check for the sight or sound of animals, inside and
out. Animals may have been left lose, tethered, or kenneled.
o Be attuned to the comments of neighbors regarding any pets or livestock not taken by the
vacating family. It may be several days before animals begin to make themselves known.
If a period of time must elapse before you can legally enter the house, be aware abandoned pets
may have suffered from neglect.
The following procedures to locate and protect abandoned animals may be suitable in your jurisdiction:
When conducting an inspection of the house and property, be alert to animal sounds, look in
windows for pets, check the backyard, and consult with neighbors regarding the presence of pets
and/or livestock.
• If pets are known or suspected to be on the property, immediately call the local animal control
agency or animal shelter and ask that an officer come to the home for suspicion of animal
abandonment and/or neglect. All 50 states have animal neglect laws that require pet owners to
provide sufficient food, water and shelter for pets. If a homeowner vacated the home and failed to
provide sufficient food, water or shelter, animal control has the authority to investigate.
• If pets are known or suspected to be on the property, immediately call the local Animal Control
agency or Animal Shelter and ask that an Officer come to the home for suspicion of animal
abandonment and/or neglect. All 50 states have animal neglect laws that require pet owners to
provide sufficient food, water and shelter for pets. If a homeowner vacated the home and failed to
provide sufficient food, water or shelter, Animal Control has the authority to investigate.
• If a search warrant is obtained and the Officer enters the home and finds pets without sufficient
food and water, the Officer may seize the animals and place them at the animal shelter while an
investigation is pursued. If animals have been left outside without sufficient provisions, the search
warrant will generally allow the Officer to seize the pets for safekeeping. If this seizure occurs
within a time period in which the Client is waiting to legally possess the asset, the animals will be
kept safe.
• If the previous Owner does not return to reclaim animals, the Animal Shelter can deem the pets
abandoned and place them for adoption and/or institute criminal animal-cruelty charges against
the previous homeowner.
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Figure 4 – VA Initial Service Checklist (see also AMS Library)
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