The Contribution to Property Preservation

1. The Contribution to Property Preservation

2. The mortgage crisis is causing economic grief nationwide. Foreclosures are at an all time high causing property values to decrease and the collapse of Fannie Mae and Freddie Mac to continue its course. Government agencies and institutions are collaborating to find a solution to this highly volatile situation. However, it is difficult to forecast the market's future with other facets contributing to the slope of the market's conditions.

3. A property's condition can be a major contributing factor to a property's value. With the foreclosure market increasing, 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 their efforts. When this happens, the home is generally worth less, due to any damages or mishaps that may have resulted in the previous homeowners' disregard for the property.

4. Lenders, investors, and institutions that hold mortgages are doing their best to preserve property values. They usually call upon the help of companies or contractors that routinely preserve and maintain the properties until they are sold. Property preservation is soaring with business. The idea is to rehabilitate the properties in order to prepare them for future sales. Guidelines are set based on the requirements regulated by the U.S. Department of Housing and Urban Development (HUD). These guidelines ensure the buyer of the marketability and value of the property's conveyance condition.

5. HUD requirements involving the property's conveyance condition include: title clearance, property cleared from occupancy, property is properly secured with proper lock codes and board-ups, all safety grounds secured including pools, spas, and such, property is properly winterized, lawn meets city code requirements, debris and all personal property removed, property is clear from any citations or code violations, and the property is clear from any major damages such as fire, earthquake, tornado, etc. The cost to repair and/or maintain properties are added to the cost of declining property values. Therefore, it may not be of any further 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 well-being of that society through taxes and other efforts, little attempts by a pair of hands can contribute to a significant amount of good.

6. My sources: http://www.foreclosurecash.net/ http://ezinearticles.com/?The-Contribution-to-Property-Preservation&id=1412219