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20 | Th e M Rep o RT Feature what is considered "vacant" has been established by the industry or government regulators. And, even if those indicators were set by the industry or government entities, there are always exceptions to every rule as every property and homeowner situation is unique. Some struggling homeowners may not maintain their properties at the same level that they once did. Recently, the Akron Beacon Journal, a newspaper in Akron, Ohio, published an article featuring the work of surveyors cataloguing homes in that city. The article highlights some of the challenges they faced while trying to determine if a property was occupied or vacant. "Determining if a house is indeed vacant or just not being kept up well is among the chal- lenges faced by the surveyors who are inputting data on the 98,000 parcels in Akron. They look for obvious signs like boarded-up doors and windows, a lack of an electric meter, and notices on the door, and more subtle hints such as recent mail, an absence of blinds or window coverings, and the presence of seasonal items like a kiddie pool or flowers in bloom. Sometimes a neighbor will offer information about how long a house has been unoccupied or how vermin have taken over." While checking one of the properties that the surveyors had determined was vacant and marked accordingly on a city-issued iPad, a woman and two children walked up the street and entered the home. In the article, the surveyors said they were shocked that anyone would occupy that property in its current condition. Field service companies doing the ground work for the mort- gage servicing industry face those same challenges when determin- ing the occupancy of defaulted properties across the country. To help reduce any confusion, field services companies must set best practices for determining occupancy and provide tools for their inspector and contractor networks out in the field. Best Practices F ield services companies must manage different scenarios for determining occupancy for areas across the country. By using business intelligence of the data collected in the field, they can identify property trends in the industry and establish best practices that can be reviewed regularly. For each order, inspectors are tasked with using their best judgment based on the training and previous data collected in the field. For properties on orders where contact with homeowners is permitted, not only should the attempt be made, but inspectors need to look for the visual clues for vacancy. Some of the clues that indicate a property is vacant include: • No personals/empty through the windows • Tall grass or yard not maintained • Overflowing or excess mail • Notices or citations posted • Build-up of fliers or phone books • Previously-posted vacancy notices • Disconnected or removed util- ity meters • Property damage or vandalism • Snow not shoveled (where applicable) • Abandoned vehicles • Confirmation from neighbors Field service companies need to equip their inspector and contractor networks with a detailed script to follow to more accurately determine the occu- pancy of a property. The vacancy indicators listed above should be included in the questions on that script. Inspectors must also submit multiple photos to prove that determination. The increased use of mobile applications in the field also helps play a role in determining occupancy. Those apps should function so that the script ques- tions can be answered in a way that will prompt the inspector to review their determinations. If a question is answered a certain way, then a secondary question will need to be answered, and so on. The apps also should allow only the proper photos to be uploaded with the order. This helps to streamline the inspec- tions process and deliver a more accurate determination. Multiple quality control check- points at the internal field services company level also help to ensure the occupancy of a property. Those updating the orders and verifying the work completed serve as a quality checkpoint. The orders also are subjected to qual- ity checks from the company's internal quality control depart- ment to ensure work is done to the highest standard. Another best practice comes from the feedback of mortgage servicers. As regulation increases, so too do the audits performed by servicers on their field ser- vices partners as an intensive look into the company's business practices, processes, and proce- dures. This can provide another look at whether or not properties are being identified properly. Having these multiple levels of quality checks, from the begin- ning of the work order process to ensuring the proper proce- dures are in place, is important in aiding in the verification of occupancy at a property. Piecing the Clues Together I n today's housing industry, piecing the clues together to determine the occupancy of a defaulted property is not as easy as deciding it was Col. Mustard, in the ballroom, with the lead pipe in the game of Clue. All of the key indicators may be there, but as the industry recovers from the financial crisis of a few years ago, these are not always cut-and-dry. Having a hard-and-fast rule or definition of occupancy is something the industry should consider for the near future, but establishing best practices based on the property data the inspec- tor and contractor networks collect every day is something the field services companies need to do now. That, coupled with multiple quality control checks, can help the mortgage servicing industry solve the occupancy mystery and protect properties and neighborhood from blight. "Determining if a house is indeed vacant or just not being kept up well is among the challenges faced by the surveyors —Jen Jozity, Safeguard Jen Jozity is the assistant vice president of inspections operations at Safeguard Properties, the largest field services company in the U.S. 3MReport.indd