Before you submit a reo reimbursement to the reo bank or asset management company, there are five items you need to double check.
1. Vendor Correct Contact Information. The vendor contact information must be correct at all times. Make sure you have accurate information such as the full and correct vendor name, complete address, phone number, and business license number.
2. W-9 Forms - A completed and accurate W-9 form is very important. It doesn't matter if you are paying the vendor or if the bank/asset management company is paying the vendor. Inaccurate social security numbers or tax ID will often delay and/or result in payment rejection in invalid 1099s at the end of the year.
3. Certificate of Insurance - All vendors that perform repairs, install gas, electric, HVAC, pool, and plumbing systems should have a Certificate of Liability. These are high dollar items and if the work is not performed correctly; resulting in damage to the property, should be held accountable. Additionally, many of the asset management and reo banks are now requiring the certificate.
4. Certifications - When work is perform on wells, septic/sewer, hvac, foundation, roof, etc., the vendor is required to provide certification showing that the work has been completed and is working. If the vendor is unable to provide a certification, the vendor is not qualified.
5. Completed Invoice - All invoices should be complete and itemized. If not monitored correctly, vendors and agents will submit incomplete invoices to the asset management company and reo bank. All invoices must have the following items to justify payments and/or to help ensure reimbursements.
- Complete vendor contact information
- Full Property Address
- Invoice number for easy tracking
- Loan number or property ID listed on each page
- Service dates, from and to
- Itemized list of services provided with the price listed for each line item
- Before and After photos for ALL repairs
6. Invoice Submissions - All invoices should be submitted within 48 hours of work completion and must include the asset management company/reo bank required documentation and follow the correct process.
Following the correct procedures ensures that you will get paid and get paid on time. Trying to alter the required process will make it harder for you to get reimbursed in a timely manner.
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