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The Different Type of Work Orders that are Issued

May 16, 2017

Certain type of orders are issued for certain reasons, each of them carry certain instructions specific to the work order type that the contractor as well as us must follow. An Eviction is where a contractor goes to the property to evict the owners, while a bid request order is where a processor provides bids for curing a certain condition in the property. In this post, I provide brief explanations of each work order types to give you an idea on how to process them.

 

 

 

 

 

Video Transcription

 

Hello, this is Zayed Ahmed, Founder and CEO of ASL BPO, on another edition of property preservation training. On this video I will start with a basic explanation of what a work order is, and give brief explanations of each work order types.

 

Work Orders are issued when a bank asks the contractor to visit a property owned by the bank for a particular reason. This can be to either complete a work, to report the condition of the property or to provide bids to repair damages. Some type of work orders, such as lawn maintenance, are recurring, as in they will be continuously issued after a certain period to be completed again. Below are some examples of certain type of work order types and what in general, the order is to be completed for:

 

Grass Cut Orders: They are issued in the Grass Season, which for most states starts from April 1st and ends at October 31st. In some states such as Texas the season will start from March 1st while in others like in Florida it is all year around. Grass cut orders are recurring, as they are issued twice each month, the first time it is issued in the start of the season it is called “Initial Grass Cut” where except for completing work all bids regarding the exterior of the property has to be also submitted. Additional work may also be completed in this order such as “Shrub Trimming” and “Debris Removal”. All other orders issued after that are “re cuts” whereby the contractor will only the cut the grass to keep it maintained and no other bids will have to be provided given that no new issues arise in the vacant property.

 

Snow Removals: Snow Removal Work orders only come in the winter season for certain states, as the name implies the order is to remove the snow that accumulates in the Driveway, Walkway and the Sidewalks of these vacant properties as well as to spread salt over these areas so as to prevent formation of ice.

 

Maid Service: Maid Service orders are also a type of recurring orders issued only on REO properties (we will get back to what REO is on a later video). Similarly to grass cuts, the first time a maid service is issued for a property is the “Initial Maid Service” and while all those that follow the initial are called “Recurring Maid Service” or just “Maid Service”. Some alternative names for Maid Service can be, “Janitorial” or “Broom Sweeping”. Again, as the name implies, the order is to complete the cleaning of the interior of the property. The crew visiting the property will: broom sweep and mop the floors, clean the toilets and kitchen appliances, clean all cabinets, counter tops, doors and windows, dust the ceiling, and place three air fresheners, with dates of the day they placed it, in the property.  

 

Winterizations: These orders are issued mostly from October 1st to April 31st. They are a type of work order whereby the contractor is asked to turn off the water supply of the property and drain all water and pour liquid antifreeze on all toilets and drains to prevent the plumbing from getting freeze damage in winter. A detailed guide will follow regarding Winterization on a later video.

 

Initial Secures: Initial Secures are issued after the property becomes vacant, for the most part, it will be the first time that the crew visits the property. A full property condition report with detailed reports on the damages and bids needed will have to be submitted in this work order. All Initial Secures will ask the contractor to change knob lock and deadbolt on the side or back door of the property and install padlocks to secure shed, garage or fence gates as well as to install a lockbox for keeping the keys in. Depending upon the season, contractors will also be asked to winterize the property and complete a grass cut. In REO properties additional work may also be completed such as maid service, trash out (complete debris removal), and installing CO and smoke detectors, etc.

 

Re-secure: If a property becomes unsecured, which may happen due to various reasons, such as someone entering and damaging the locks, or keeping the doors and windows open, a re-secure order is issued to secure the property again. Work that maybe completed in such orders are to change locks, if they are no longer operable, securing with existing locks if someone simply kept the door or window open, or to board doors or windows if they have been broken.

 

Bid Requests: Bid Requests and Estimates are where a contractor is asked to provide bid to repair a particular damage only. The contractor will visit the property, note down about the particular damage present and we will submit bid accordingly about it.

 

Bid Approvals: For the bids that we submit, if they are approved a bid approval/estimate approval order is issued stating that the bid has been approved and that contractor may proceed with the repair work. It is to be noted however, that sometimes, the approval may come at a reduced price than what was originally submitted at or the damage may worsen so that the repair may no longer be done at the approved price. In such cases, we provide reason as to why the work could not be completed and rebid on the item.

 

At own cost or no charge orders: As the name implies, this are orders where work has to be completed at the own cost of the contractor, these are issued when work completed on a previous order was not done correctly and thus the contractor has to return to fix it.

 

Evictions: Evictions are where the contractor arrives with a police to forcefully evict the owners from the property under the direction of the bank. If a successful eviction occurs, the owners will be thrown out of the property and their personals will also be moved to the exterior. Evictions are invoiced at a fixed rate by man hours, that is, the number of crews of the contractor present times the number of hours they were in the property.

 

Cash for Keys: When a mortgagor (one who took loan from the bank) fails to keep paying for their loans, a bank proceeds with foreclosure, meaning that it takes legal action of possessing the mortgaged property. Sometimes though, instead of taking such a costly action, the bank can offer monetary payment to the owners to vacate property, this is what cash for keys are called and in such orders the contractor goes to the property on behalf of the bank to complete the transaction with the owner.

 

Deed-in-Leu: If the owner of the property, voluntarily gives up the ownership of the property to the bank to satisfy the default loan that he no longer is able to pay and to avoid foreclosure, it is called a Deed-in-Leu. Such work order is when the contractor arrives on behalf of the bank to complete the deed-in-Leu.

 

Eviction, Cash-for-keys and Deed-in-Leu are a types of work order where the mortgagor (owner of the property who is also the loan defaulter) gives up the ownership of the property to the bank via different means, and thus the property is vacated. Since this is the time of visit for the contractor when the property is being vacated, a complete and detailed property condition report, damage and bids for repair are to be provided in all such orders.

 

Hazards EOB: Sometimes, banks will insure the property against certain types of damages, such as theft and vandalism. If damages occur due to such reasons, the insurance company will pay a certain amount to repair such damage. Hazard EOB (Explanation of Benefits) are when the contractor is sent out by the bank to visit the property to see if the repairs can be done with the amount the insurance company is paying, if so, the contractor will let the bank know that they can proceed with the repair work and if not they will let the bank know, that repair work cannot be completed for the stated amount and will provide bid for repair.

 

Re-conveyance: If a property fails conveyance check, (that is to check to see if no damages exist in the property and it is in saleable condition), the property is turned back to the bank to repair all damages. Contractor is sent out to provide a final report providing detailed bids on all repairs needed for damages.

 

That is all for this video, remember, it is important to know all these work order types, as  each of them will have different instructions that we must follow. Hope you enjoyed the video and learned what was told, until next time.

 

 

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