Module 1 – Documentation

Chapter 2: Property Condition

Property Condition

Clients generally request reports regarding the condition of the property that is being serviced, commonly referred to as a Property Condition Report.  The information contained in a property condition report is critical in determining the extent to which a property is damaged and can assist the client in filing insurance claims to rectify these issues.  Failure to report property condition information can lead to reconveyance from HUD and charge back issues from clients as a result of financial loss.

Typical property condition report fields include:

Damage & Violation Reporting

●  Damages that should be reported include:

∙  Health and /or Safety Concerns

∙  Water & mold damage

∙  Fire damage

∙  Wind damage

∙  Missing and/or damaged appliances, HVAC components, and water heaters

∙  Other exterior damage

∙  Other interior damage

∙  Vandalism

∙  General wear & tear or mortgagee neglect

∙  Property violations

Property Type

●  The number of units at a property and the type of property present (single family, condo, etc.) should be reported to verify prior inspection reports and ensure the correct property is being serviced

●  If the property being serviced is a manufactured or modular home, also referred to as a mobile home or trailer, it is a best practice to include the Vehicle Identification Number (VIN) or HUD number within the report.

∙  The Vehicle Identification Number (VIN) number can be located on the front end frame of the mobile home.  It is usually painted onto the frame and may be hidden by skirting or worn off from age.   It is also located on a label sheet affixed somewhere inside the mobile home – common locations include inside a kitchen cabinet, an electrical panel, or a bedroom closet.  On that label you can also find the manufacture date as well as the make and model of the mobile home.  Unfortunately, the sheet can also be missing if the occupant has removed it.

∙  The HUD number is a number that begins with three letters followed by six numbers and is engraved into a metal plate that is attached permanently on each section of the mobile home.  It may be on the back or the side of the section.  Each section will have a different number, but will be sequential (i.e. RAD 000001).

∙  Visit for more information regarding mobile home identification numbers

∙  Each state has different reporting standards regarding manufactured and modular homes so it is important to pay attention to local and state requirements regarding their management.  If your state requires additional reporting, your client may hold you responsible for completing the necessary forms.

Utility Status

●  The status of all utilities including gas, water, and electricity should be reported to including:

∙  Meter numbers

∙  Meter readings

∙  Meter locations

∙  Shut off locations

●  Documentation of meter readings and numbers can often be important to the Servicer to ensure that these services are maintained or disconnected depending on the status of the property

●  In the case that meters are grouped together for multiple properties, be sure to document the correct meter for the property being serviced

Maintenance Needs

●  Securing

∙  Indicate whether or not the property is secure

∙  If unsecure, the openings requiring securing should be reported

∙  If locks have already been changed which locks, what type of lock was used and which key codes are present

∙  Will aid in providing access when necessary

∙  Report the presence of any broken windows

∙  Report the presence of any swimming pools and indicate if fenced and secured

∙  Provide information regarding properties that are listed for sale including:

∙  Realtor Name

∙  Realtor Contact Information

∙  Report the presence of any garages and outbuildings as well as whether or not they are secured or require securing

●  Winterization

∙  Report the type of heating system present

∙  Report the presence of a sump pump and whether or not it is operational

∙  If it is not operable, provide a reason for this status

∙  If electricity requires restoration, provide utility company information with this report

∙  Indicate if a winterization has been completed

∙  If not completed by your company, provide any details available regarding company responsible and date of previous winterization

∙  Report if all fixtures and heating equipment (if applicable) has been drained and pipes blown out with compressed air

∙  Report if antifreeze is present in all traps and fixtures

∙  Report if system holds pressure

∙  Indicate if tags have been placed indicating the winterization completion date

∙  Provide details regarding and damages found to the plumbing system including possible cause (i.e. freeze)

●  Property Contents

∙  Cubic yards of interior debris, personals and hazards present (may all be classified as debris depending on client and Investor requirements)

∙  Cubic yards of exterior debris, personals and hazards present (may all be classified as debris depending on client and Investor requirements)

∙  Report the types and amounts of items removed from the property

∙  Report the types and amounts of items remaining in the property

∙  Indicate if the property has been cleaned and what type of cleaning was completed (i.e. sales or broom)

●  Yard Care

∙  Report the lot size (area requiring cutting) and height of grass

∙  Indicate type of yard care completed (if applicable)

●  Safety Concerns

          ∙  Health and safety issues including missing handrails, open pits/holes, broken glass, exposed electrical lines, broken and or gas lines, unstable structures, etc. that may pose a threat to anyone entering the property or its premises should be noted

     ●  General Condition

∙  The general condition of both the interior and exterior of the property should be assessed and noted including any items of interest that may impact the integrity or value of the property