The mortgage crisis is causing economic damage nationwide. Foreclosures are at an all time high causing property values to decline and the collapse of Fannie Mae and Freddie Mac to run its course. Government agencies and institutions are collaborating to find a solution to this highly volatile situation. However, it is difficult to forecast the future of the market with other facets contributing to the slope of market conditions.
The condition of a property can be an important factor that contributes to the value of a property. With the rise of the foreclosure market, more homeowners are neglecting their properties with the attitude that they have nothing left to invest in the property. Therefore, keeping the property in good condition is no longer worth it. When this happens, the home is usually worth less, due to damage or mishaps that may have resulted in the previous owners disregarding the property.
Lenders, investors, and institutions that hold mortgages are doing everything they can to preserve property values. They usually enlist the help of companies or contractors who routinely preserve and maintain the properties until they are sold.
Property preservation is increasing with business. The idea is to rehabilitate the properties to prepare them for future sales. The guidelines are established based on the requirements regulated by the US Department of Housing and Urban Development (HUD). These guidelines assure the buyer of the marketability and value of the property’s conveyed condition.
HUD requirements related to property conveyance status include: title clearance, property free of occupancy, property properly secured with proper lock codes and planks, all secure grounds secured including pools, spas, etc., property is adequately winterized, lawn meets city code requirements, debris and all personal property removed, property is free of any citations or code violations, and property is free of major damage such as fire , earthquakes, tornadoes, etc.
The cost of repairing and/or maintaining the properties is added to the cost of diminishing the value of the properties. Therefore, it may not be of much benefit to keep a property in good condition, if you are no longer going to live in it. However, as part of a society that contributes to the welfare of that society through taxes and other efforts, the small efforts of a pair of hands can contribute a significant amount of good.