The foreclosure crisis is causing economic pain 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 a major contributing factor to a property’s value. With the foreclosure market on the rise, 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’ disregard for the property.
Lenders, investors and mortgage institutions are doing everything they can to preserve property values. They usually enlist the help of companies or contractors who routinely preserve and maintain 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 requirements regulated by the US Department of Housing and Urban Development (HUD). These guidelines assure the buyer of the marketability and value of the conveyance condition of the property.
HUD requirements related to the conveyance status of the property include: title clearance, free occupancy property, property properly secured with proper lock codes and boarding, all secured security grounds including pools, spas and more, the property is properly 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 property values. Therefore, it may not be in your best interest to keep a property in good condition if you are no longer living in it. However, as part of a society that contributes to the well-being of that society through taxes and other efforts, the small attempts of a pair of hands can contribute a significant amount of good.
