Stop the Losses!

Tustin & Company can help you minimize your losses. For the same fees you are paying now - we provide true preservation services.

In recent years, the property preservation industry has seen an influx of untrained, unknowledgeable, new business start-ups. These new businesses think they can earn thousands of dollars each day by "securing" foreclosed and REO properties. The services they offer are a detriment to the lender and result in additional loss over and above the failed loan.

On this page you will find what we have found - poor craftsmanship that is bleeding:  the lender with reduced property value;  government entities that guaranty these loans;  the American Taxpayer who suffers ever increasing interest,  ever increasing taxes, and declines in property values of their neighborhood; and the cities that must deal with not only neglected but willfully abused properties at the hands of those who are to preserve and secure them from further damage.

This tarp is not stopping any leaks!! The roof is brand new and was just replaced!! The tarp is completely unnecessary. Rather than report to the client that the roof no longer needed tarping, it is obvious the contractor needed to make a buck at the lender or taxpayers expense. Additionally, had the roof required a tarp - this job still would not stop a leak because it is not installed properly. It should be batted down to avoid wind lift and reach over the roof peak to avoid water running under the tarp as it drains from the upper reaches of the roof. Approximate loss - $500 for the tarp and possibly another $5000 for damage to the new roof.

By not batting a tarp that is oversized, the wind will find a way to lift the tarp up and eventually tear it from it's place (as depicted below). Without the tarp - water will enter - purpose defeated, property damaged. Water damage repair for this property? Your additional loss - Approximately $25,000.

Tarping is not the only shortcoming of these new businesses seeking their fortune in the field servicing arena. These folks damage the properties just by trying to secure them! Below is a steel door dented and scraped at the knoblock area; proof that an untrained and unskilled preservation mechanic has entered and changed locks on this property. The below lock does not even fit properly - leaving the property technically unsecure! New door cost? Your additional loss - Approximately $250 installed.

A skilled preservation mechanic can enter a property without causing damage. Locks will be either "picked" or drilled out. Often, the prior occupant even leaves a window or door unlocked - providing easy access for the preservation mechanic that knows to look for one. Our mechanics know how to and do enter without causing damage.

A long time habit of preservation mechanics is to "cheap out" on securing a property. They remove a $45 deadbolt (usually to use on another property and CHARGE YOU for it) and leave a hole in the door covered with a free securing notice provided to them by their client. Look for photos with a securing notice directly above the new lock installation - that contractor has probably just made an additional $45 or more by taking your deadbolt. Your loss - Approximately $90 ($45 to replace and the $45 you'll pay on the next property.).

Duct Tape is another way contractors cheap-out and rob the lender! They remove the deadbolt and cover the hole over with duct tape. An experienced person knows that it takes only seconds to by-pass the duct tape and have entry into the house - to damage or vandalize it. Minimum loss to the lender - Approximately $90 - maximum loss $???? Don't forget, teenagers and drug addicts seek out the vacant properties to have a sleeping quarters or party pad!

This connected water meter was found in a property that was clearly posted as being winterized. Water meters typically are to be disconnected, capped with a service plug to prevent accidental re-entry of water, and tagged as being winterized. It will be no accident when the water is inadvertently restored to this property in the middle of winter - causing severe freeze damage and high losses. Approximate lender loss - $80,000 or more!

Improper winterization is a source of major loss to lenders. If the property has not been properly prepared for the winter months, the plumbing system will freeze and burst. A new plumbing system can cost thousands of dollars. If the damage is not discovered until Spring or later, the moisture from the frozen and burst supply pipes can lead to mold within a property. Not only can the plumbing lines freeze, but the hot water tank can also freeze and burst if not properly drained. Below, we found a contractor had attempted to drain the hot water tank by running a hose to the kitchen sink. Do you really believe the contractor was able to defy the laws of gravity? Can water flow up hill? Of course not.

Contractor's Nightmare - Mortgage Field Services - Industry Problems #1
The validity of reports from fee inspectors for property inspections has come into question in recent months as fees have dropped to $3.00 or less to the inspector that is actually visiting your asset. With infusion of fee inspectors from the ranks of the unemployed using $29.95 manuals boasting untold riches to be gained from fee inspection services - your asset is at risk.
Why pay these fees on a $250.000+ property? This property has been vacant for over 3 months and neighbors report they have never seen an inspector. HUD published monthly inspection rates are $25.00 for the Initial Inspection and $15.00 for the subsequent inspections. Do you believe anyone has visited this rural property for $3 to $6.00? How have you saved money?
Now, the taxpayer, Insurance company and you have lost, if this vacant property has been undetected due to your inspection request being completed from a table top.
The basement is flooded. There is Black Mold growing up the basement stairway and into to the rest of the property. The costs to repair and remediate this property by a qualified water damage restoration service will cost $50,000 or more - is that bargain inspection fee worth this? As Tustin & Company offers only preservation services, there is nothing we can do to help you with this loss other than to let you know failure to inspect is a frequent industry occurrence which devalues your asset.

This is a FHA Guaranteed property - some day it will be conveyed to HUD. It has been vacant over a year. According to HUD specification, the lawn should be mowed every two weeks during the growth season and it should be inspected every 25 to 35 days since found vacant. The front lawn does not look like it is being mowed every two weeks and the back lawn has definitely not been mowed every two weeks. Windows are consistently being broken out - your loss could be the insurance you anticipate from HUD!

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