What Is Property Preservation?
Property Preservation is the act of counteracting or eliminating undesirable conditions at a property. Any condition or circumstance that lessens the value of the property or increases its risk for damage is an undesirable situation.
Investors in real property and insurers of real property each have a set of guidelines from which they determine what they consider an undesirable condition and the action(s) that should be taken to rid the property of the undesirables.
The guidelines are influenced by HUD mandates but the influence is minimal because the HUD mandates (guidelines) become less specific with each update of the guidelines. This leaves the guidelines open to interpretation in a lot of circumstances.
Somewhere in one of my manuals I criticized other writers for filling their books with fluff. I’m just pointing that out to remind you since I am not going to do that even though this would be a good place for me to fluff it up with a hundred pages or so. How about, instead, I just give you a link to the HUD Mortgagee Letters – the official name for what we normally call the HUD Docs or HUD Regulations.
You do not need to read all of them, just the ones that mention stuff that effects us – like “conveyance”.
I’m pretty well convinced that if you read through these letters and take the time to understand what information they are supposed to transfer, you will know much more than the average servicing company employee responsible for sending your work orders.
Be forewarned though. Having a true understanding – if thats possible with any government document – of the HUD guidelines gives you no advantage. The real life Property Preservation guidelines in use today have become severely polluted with interpretation and competitive features “added” to the guidelines.