# Safeguard Lost FNMA (REO GRASS)



## IPS

So i get an email today that SG is transitioning out of servicing Fannie Mae in REO GRASS only in the follow states CT, DC, DE, MA, ME, NH, NJ, RI and VT. That is a hell of a kicker:sad: for me since 85% of my REo grass is FNMA. Any others feeling this? Anyone actually contract for FNMA on the grass side? Looking to see how hard it is to become a vendor for them...thanks!


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## Ohnojim

*Well, that didn't last too long. It seems no one will work*

for them these days. Huh!


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## njreo

*grass cuts*

safeguard lost the contract with fannie one of my clients informed me he was at a conference last week in texas with fannie from my understanding fannie will hire their own contractors now to do property preservation and not use a national


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## BRADSConst

njreo said:


> safeguard lost the contract with fannie one of my clients informed me he was at a conference last week in texas with fannie from my understanding fannie will hire their own contractors now to do property preservation and not use a national


Any more details on this? I find this a tad bit hard to believe. Is this for a one state trial run? REO or PPO? What is the brokers involvement? I just don't see FNMA taking on the burden of adding lots and lots of contractors.

I've been working on a few rehabs for the FNMA broker in my area. He never once mentioned anything like this


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## njreo

*safeguard*

he mention this to me on Sunday and now I am reading this post so I cant personally speak because I never worked for safeguard but from what he said it was just flat out fannie and safeguard are no longer going to be working together so I don't know if stopping grass cuts is the first step but to me it seems what my client told me is correct at least to some extent.


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## JenkinsHB

njreo said:


> he mention this to me on Sunday and now I am reading this post so I cant personally speak because I never worked for safeguard but from what he said it was just flat out fannie and safeguard are no longer going to be working together so I don't know if stopping grass cuts is the first step but to me it seems what my client told me is correct at least to some extent.


Not accurate.


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## IPS

BRADSConst said:


> Any more details on this? I find this a tad bit hard to believe. Is this for a one state trial run? REO or PPO? What is the brokers involvement? I just don't see FNMA taking on the burden of adding lots and lots of contractors.
> 
> I've been working on a few rehabs for the FNMA broker in my area. He never once mentioned anything like this


All i know is that the REO GRASS contracts are gone. SG will still do P&P Grass with Fannie. I DO NOT know anything more about other services we preform on houses. My big question is how can FNMA take on so many more contractors...or will they move to someone else to grass coverage? Any one have any info on this?:thumbup:


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## BRADSConst

My guess is someone else, Cypricks, The siblings, MCS, etc. underbid and over promised FNMA that they could do better than Screwguard. The P&P musical chairs starts up again......


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## All Island Handy

bradsconst said:


> my guess is someone else, cypricks, the siblings, mcs, etc. Underbid and over promised fnma that they could do better than screwguard. The p&p musical chairs starts up again......


and round and round we go...........


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## JDRM

BRADSConst said:


> My guess is someone else, Cypricks, The siblings, MCS, etc. underbid and over promised FNMA that they could do better than Screwguard. The P&P musical chairs starts up again......


assreo


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## safeguard dropout

Assero? Is that solid? I woulda figured Lee Mertins had burned that bridge with Fannie when he was at AMS.


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## njreo

*fannie*

I am 100 percent sure safeguard no longer has the contract and I can 100 percent confirm that First Allegiance has gotten the contract with fannie


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## njreo

well let me at least speak for nj as I can confirm for this state


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## IPS

*Confirmed for Vermont*

Is CitySide Management out of Manchester, NH. So i assume they cover NH, ME and maybe NY? I know for sure Vermont is covered by them. :thumbsup:


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## JDRM

All sates are different. First allegiance, assero, sentinel, GTJ, etc


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## idaho

Well I would like to take about my experience with First allegiance...

There one of the reason I started with my access fee, so they have volume but need one order done right away. I verify I am sign up with them have code everything etc ...

Its just a grass cut, fine do the initial submit no problems, 2 weeks later get recurring cut complete submit no issues, 2 weeks later another recurring cut complete submit no issues.

Get another recurring wife says, there on hold for non payment (they have made no payment). send email stating the issues... 2 weeks later after that email was sent get the response below. My experience may differ from yours but they seem in no hurry to send me a check, its not the amount but its what they have in place to pay in a timely manner that pissed me off, no i am not interested in doing a lien .. I got the word out to most doing this work that home will have a hard time getting another cut not say it won't who knows.


Good afternoon, please confirm if/when the grass cut is complete. Please be advised, a generous amount of before, during, and after photos need to be provided to verify the progression of the grass cut. Photos must be submitted and date stamped 24 hours after the grass cut to create a recurring work order. It is imperative that the photos are date stamped, if you cannot date stamp your photos please notify me so the issue can be assessed. I had looked into your billing issue. Your check has been printed we are just waiting for a signature and approval to send it out I will keep you posted. If there are any issues please contact me at


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## GTX63

idaho said:


> Good afternoon, please confirm if/when the grass cut is complete
> 
> Your check has been printed we are just waiting for a signature and approval to send it out I will keep you posted.


LOL, "Tell me when the yard is mowed and I'll tell you when you get a check."


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## ezdayman

*Good..*

Cant wait tell they lose the midwest.. the vendors in my area are a joke.. I dont blame Fannie getting rid of nationals.. to much fraud and no one really does the work. been to homes where only half the yard is mowed and the neighbor comes over says they mowed the small side took a bunch of photos and left, but the rear and other front side are 3 feet tall. lol. .i blame the crappy field qc people for this.. they become best friends with the vendors and then give them slack... Oh man.. let me know when safeguard turns the keys in for there office  :thumbsup:


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## safeguard dropout

Not bad everywhere...here's one in my area I checked on today. Immaculate.


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## cfm

IPS said:


> Is CitySide Management out of Manchester, NH. So i assume they cover NH, ME and maybe NY? I know for sure Vermont is covered by them. :thumbsup:


I can tell you for sure that cityside does CT now too.


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## reoPROS

Funny morning I had,

so safeguard emails me this morning asking me if i will take over any if not all the areas they have open, or as i like to call it, openings because they screwed over vendors in these areas of need. They want me to change my insurance company,get workman comp,get 1mill of errors and omissions REAL ESTATE AGENTS DON'T COVER THAT MUCH, not to mention a slew of other overboard request! how are they in business still?


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## safeguard dropout

From what I hear SG is desperately trying to hang on to what they've got left of FNMA. They are doing whatever they can, short of treating people decently and paying reasonable prices.


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## ezdayman

*35%*

i know a guy that just got into this and safeguard is taking 35% from him.. no thanks... Hey Palmer.. I hope you and your gold medal wife enjoyed all the people you screwed over.. D-baG:thumbsup:


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## AaronMcKeehan

njreo said:


> safeguard lost the contract with fannie one of my clients informed me he was at a conference last week in texas with fannie from my understanding fannie will hire their own contractors now to do property preservation and not use a national


Did anyone verify if this was true? Is Fannie Mae going to try subbing, or are they finding a large subbing company?


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## GAMG

who is taking fannie mae reo work since they are no longer with safeguard on the east coast?, anyone have any idea


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## GTX63

GAMG said:


> who is taking fannie mae reo work since they are no longer with safeguard on the east coast?, anyone have any idea


Good Morning GMAG,

Welcome aboard. Please feel free to post an introduction in the new member thread. We deleted a similar post or yours in another topic. Just a quick reminder that you can avoid duplicate posting by simply starting a new thread or you can PM a member. Thanks.


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## Yeah

FWIW safeguard recently picked up the fannie mae contract in Nebraska.


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## Ohnojim

*They recently picked it up in PA too.*



Yeah said:


> FWIW safeguard recently picked up the fannie mae contract in Nebraska.


Then they very quickly lost it.


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## Wannabe

They recently picked up Iowa too. Realtors are all upset. The subpar work is already showing.


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## Joey2Sites

Assero has Fannie now.. as of about a week ago. I don't know exactly which states, but PA, MD, VA for sure.


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## IPS

*FNMA Contracts went to*



GAMG said:


> who is taking fannie mae reo work since they are no longer with safeguard on the east coast?, anyone have any idea


Cityside Property Preservation in Manchester, NH. They won the contracts in 7 states. I am guessing- ME, NH, VT, NY, MA, RI, and CT. If you want to know about them PM me...:whistling2:


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## MemphisREOVendor

*FNMA-Southern States*

Any word on FNMA and southern states?


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## deputy138

*Fannie Mae, Freddie Mac*



njreo said:


> safeguard lost the contract with fannie one of my clients informed me he was at a conference last week in texas with fannie from my understanding fannie will hire their own contractors now to do property preservation and not use a national


It is in fact true the HUD, Fannie and all other Government backed or sponsored companies will began hiring their own contractors. This is due to so much fraud and embezzlement on behalf of the scam companies. Many NAMFS clients have knowledge of fraud and fail to pass this own to the Inspector General who has pacifically asked that if theres any doubt or suspicious with any contractor to notify them and many have failed just pass on to another co. Common practice in this industry is, a company contractor will be suspended, create another co. different name and continue their fraud. So this is great for many of the honest contractors/subs. So many individual/sub-contractors have been scammed by out of state companys. Also NAMFS is under , well I better leave that for the proper persons. I was scammed on 2 jobs at my P&P startup in an effort to create something for my son and other young familys to make a living at, and with a Law enforcement background began my own investigation and it has been overwhelming to say the least.


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## PropPresPro

deputy138 said:


> It is in fact true. . .


Besides 'someone told me' or 'I read it on the interweb" do you have any proof to offer in support of this fact?


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## HM&T

*SafeGuard FNMA REO Grass*

PA is also included in the lost of REO work. I was wondering who is doing their work now.


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## madxtreme01

Who cares, is there any iddiots that are actually willing to work for Safeguard. I gave them up after 3 days 5 years ago. They are garbage


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## Ohnojim

*That's three more days than I gave'm*



madxtreme01 said:


> Who cares, is there any iddiots that are actually willing to work for Safeguard. I gave them up after 3 days 5 years ago. They are garbage


I think the illegal insurance "approved carriers" was the final straw. A company willing to so blatantly disregard such a wide range of statutes. on so many levels right there in writing would have no issue squashing me like a bug, just for kicks. That was my thinking.


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## madxtreme01

Ohnojim said:


> I think the illegal insurance "approved carriers" was the final straw. A company willing to so blatantly disregard such a wide range of statutes. on so many levels right there in writing would have no issue squashing me like a bug, just for kicks. That was my thinking.



MCS is pulling the same garbage now with their insurance. My policy went from $800/yr to $2500/yr


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## Wannabe

What I find amazing is why any insurance carrier would even offer a policy to the P&P contractor?


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## newreo

Wannabe said:


> What I find amazing is why any insurance carrier would even offer a policy to the P&P contractor?


This is what I was thinking today. 
I don't know if any of you had this issue, but we struggle with getting gen liability now due to the fact that we do mold. Apparently it's a big no-no for the carriers. P&P would be considered extremely risky comparing to mold.


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## GAMG

Is there anyone on this site successful at p and p or reo work? If so how to you hire crews and make payroll Waiting for invoices to process every 30-45 days?


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## Ohnojim

*With all the stories you post about being sued*



Wannabe said:


> What I find amazing is why any insurance carrier would even offer a policy to the P&P contractor?


I find it utterly amazing any company would insure you.


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## madxtreme01

They specifically ask you on the application if you treat mold, if you select yes, they most likely will deny you. I just make sure that on all mold jobs we complete, since they are most likely just painting over the surface instead of just removing it, I always put in my bid and completion notes that this is not the correct way of removing mold, mold still may exist in the house, and this process does not stop the spreading of mold as it may be on the back side of all surfaces treated. I haven't heard anything and I've been doing this for 8 years.


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## TheFNG

What are people getting for their FNMA REO recuts these days? I've got a national trying to get me to do hundreds of them for $40 each. Absolutely no way to complete their required scope and make any money...


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## deputy138

*do your homework*



PropPresPro said:


> Besides 'someone told me' or 'I read it on the interweb" do you have any proof to offer in support of this fact?


If ALL contractors/subs/vendors will start filing the complaints/issues with the mortgage holder, where it be HUD/FHA/VA/Wells Fargo,ect; you will see slow but forsure results. The follow up with the OIG and each complaint you file you will be issued an case #. keep asking questions. If a mortgage holder ask for your invoices as proof of what the regional/nationals are paying you, send them a copy, their seeing true the "low pay, low quality of work". I got scammed the first Contractor I worked for, I did not stop until i got results and just today recieved OFFICIAL notice that Contractor had been suspended from all goverment sponsored/financed properties and the letter I received was also a notice to the national to decease any and all work with the same. My claim with many others have been forward to the fraud division for further investigation and or charges. It is time consuming "so is my labor" but you can not write it off as a loss and move on, thats what the companys are in the mind set of the little man doing. If its 1$ and I worked for it then I'm going to fight for it.


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## madxtreme01

TheFNG said:


> What are people getting for their FNMA REO recuts these days? I've got a national trying to get me to do hundreds of them for $40 each. Absolutely no way to complete their required scope and make any money...



What is the scope of work they are requesting? I'll do $40 5k lots all day long, but not if they say up to 2ft and up to 1 acre


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## Ohnojim

*$40 FMNA re-cuts have been very good to me*



madxtreme01 said:


> What is the scope of work they are requesting? I'll do $40 5k lots all day long, but not if they say up to 2ft and up to 1 acre


It really depends on your area. For AMS when you could do them every 5-7 days,they were cupcakes,damn near free money. That's 40 after discount? The scope was up to an acre, but most were under 5K and many were weed eater jobs. Yes,I ate a few big ones here and there. Your have to know your area.


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## madxtreme01

Ohnojim said:


> It really depends on your area. For AMS when you could do them every 5-7 days,they were cupcakes,damn near free money. That's 40 after discount? The scope was up to an acre, but most were under 5K and many were weed eater jobs. Yes,I ate a few big ones here and there. Your have to know your area.



that sounds like a dream, but around here there is a good mix of property sizes and $40/acre is way too low to consider even taking my equipment off the trailer. Like you said if most were 5k and you get a few random acres, you bite your tongue just to get the volume, you have to give some and take some in this industry.


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## TheFNG

madxtreme01 said:


> What is the scope of work they are requesting? I'll do $40 5k lots all day long, but not if they say up to 2ft and up to 1 acre


It's pretty extensive: mow, edge, trim all trees/shrubs/etc, weed removal and treatment in flower beds, driveways, walkways, etc, clear window wells of debris. They're telling me the $40 price is for up to an acre and that they'll barely be making anything on it. Sounds like a line or they're one step too far down the totem pole. 

I want the work cuz the volume is appealing but I'd rather sit at home not making money than go sweat my a$$ off to lose it.


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## Ohnojim

*Only you can answer the question.*



TheFNG said:


> It's pretty extensive: mow, edge, trim all trees/shrubs/etc, weed removal and treatment in flower beds, driveways, walkways, etc, clear window wells of debris. They're telling me the $40 price is for up to an acre and that they'll barely be making anything on it. Sounds like a line or they're one step too far down the totem pole.
> 
> I want the work cuz the volume is appealing but I'd rather sit at home not making money than go sweat my a$$ off to lose it.


There is no easy answer that someone on the internet can give you. Get the list do the leg work and run the numbers, or don't.


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## madxtreme01

TheFNG said:


> It's pretty extensive: mow, edge, trim all trees/shrubs/etc, weed removal and treatment in flower beds, driveways, walkways, etc, clear window wells of debris. They're telling me the $40 price is for up to an acre and that they'll barely be making anything on it. Sounds like a line or they're one step too far down the totem pole.
> 
> I want the work cuz the volume is appealing but I'd rather sit at home not making money than go sweat my a$$ off to lose it.



I would say every company is different. Personally when I do grass cuts, I'll only trim every 2-3 cuts, I don't edge, flower beds are never included. It also depends on your area, if most of the properties are 5k lots, then there is money to be made, but if most of your properties are 1/2 acre then you will most likely be loosing money. I would have to say it also depends on your equipment. Are you running a dump truck pulling a 20ft enclosed trailer with 4 commercial mowers and a 3 man crew? or are you pulling a small trailer with a 42" mower being pulled by a 4cyl ford ranger and you are alone? There are a lot of scenarios where this could be profitable, but in most cases not. Most important part for me would be volume since the lower the volume the further apart your properties will be and time is money.


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## safeguard dropout

madxtreme01 said:


> I would say every company is different. Personally when I do grass cuts, I'll only trim every 2-3 cuts, I don't edge, flower beds are never included.


You've told the entire planet what state you work in, what counties you work in and some cities. Now you're telling us all exactly how you do a half a$$ job. If I lived in Jersey (never!!!) I would be thinking opportunity to clean up some messes at a great price.


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## madxtreme01

safeguard dropout said:


> You've told the entire planet what state you work in, what counties you work in and some cities. Now you're telling us all exactly how you do a half a$$ job. If I lived in Jersey (never!!!) I would be thinking opportunity to clean up some messes at a great price.



The properties I maintain look beautiful, flower beds are NOT included in a grass cut, edging is not done by any of the properties I have ever been to, I am not referring to what has been done by myself, and you would never know. The banks aren't even approving bush trimming, you think that edging matters when a property hasn't been trimmed or a leaf cleanup has been done in 5 years? Maybe things are different in your area, but they barely approve anything exterior or interior unless there is a pending violation or a property is going to be in worse condition if the issue isn't addressed. I do P&P, not reo, and REO work prices here are worse than P&P so I have been turning that work down for years. 


So you would have no opportunity to clean anything up as all of these properties are handled by nationals with no room for negotiation as the state is so highly populated that if you don't want to work for the prices they are willing to pay, they will find someone else. So we are at the mercy of the nationals around here. There are very few other opportunities.


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## safeguard dropout

madxtreme01 said:


> REO work prices here are worse than P&P so I have been turning that work down for years.
> 
> I know of a company, IN JERSEY, with tons of REO and looking for contractors offering way more than what you're getting. Once again, if a might quote Mr Hack, you're not looking in the right place.


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## madxtreme01

safeguard dropout said:


> madxtreme01 said:
> 
> 
> 
> REO work prices here are worse than P&P so I have been turning that work down for years.
> 
> I know of a company, IN JERSEY, with tons of REO and looking for contractors offering way more than what you're getting. Once again, if a might quote Mr Hack, you're not looking in the right place.
> 
> 
> 
> 
> Well, share that info, it would be greatly appreciated. I have been unsuccessful in finding anything. At the same time you don't really know what I'm getting, but I've been in this business for several years and your average 15k lot recut I have not seen for more than about $50-60 unless the requirements were so crazy that it wasn't worth doing. IE 60 pics or PCR with every cut
Click to expand...


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## safeguard dropout

madxtreme01 said:


> I have been unsuccessful in finding anything. At the same time you don't really know what I'm getting


You have posted 158 times and 1/2 of those tell us who what when where and why. MCS is your best, and some regional stuff down to $25 recut...bout right?


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## madxtreme01

safeguard dropout said:


> You have posted 158 times and 1/2 of those tell us who what when where and why. MCS is your best, and some regional stuff down to $25 recut...bout right?



I have given up on regional garbage. Currently I am working as a sub for LPS through a local company getting decent rates, MCS direct, and MCS through another local company that is only taking 10% which on most work equates to nothing. I have worked with Safeguard, assurant, NFR, the old BOA before Safeguard, spectrum, five brothers, AIM, etc, and I have NOTHING good to say about 90% of them. They all lie, steal, cheat, and will do anything to screw you so they keep more money in their pocket. I have had some good reps at these companies that will bend over backwards to get you the good bid approvals, but they don't last or they are reassigned and the gravy train that you love is gone in an instant.


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## GAMG

Has anyone ever heard of First Allegiance The say they are a national but the pay like a regional that is when they decide to pay


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## JDRM

GAMG said:


> Has anyone ever heard of First Allegiance The say they are a national but the pay like a regional that is when they decide to pay


Yes , Ive heard of them. Never worked with them


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## cover2

GAMG said:


> Has anyone ever heard of First Allegiance The say they are a national but the pay like a regional that is when they decide to pay


Stay away you're right when you say when they decide to pay. They used to call me with one property every six months wanting a 35 initial grass cut which I would tell them no way. They would then agree to my bid but 3 emails and 4 phone calls on the day it was due then waiting 60 days told them not to call me anymore.


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## GAMG

We should organize and come to gather at these vendor conferences and fight for better wages and faster turn around on invoices submitted. If you interested let me know we can change this industry and instead of being at the bottom we can be equal partners because we are the most important key to maintaining these homes not the nationals or regional but you and I with our boots on the ground. Contact me let's build our own national


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## Ohnojim

*We will not and can not "organize"*



GAMG said:


> We should organize and come to gather at these vendor conferences and fight for better wages and faster turn around on invoices submitted. If you interested let me know we can change this industry and instead of being at the bottom we can be equal partners because we are the most important key to maintaining these homes not the nationals or regional but you and I with our boots on the ground. Contact me let's build our own national


We are contractors. The only way to control pricing and terms is to "Just Say No" Any "organizing" would in fact be price fixing and illegal in most cases. 

As long as people are completing $20 lawn cuts and $15 debris removal, there will always be the cesspool of bottom feeders. 

The "organizing" mindset is the very antithesis of/to contracting, and those who spout this nonsense shouldn't be contracting in the first place, and are most likely the ones completing under-priced and substandard work.

Just my $.02, which by the way is the price of a line cap for Joe $h!t the Ragman Preservation.


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