HUD Property Inspection Reports

HUD Field Service Managers (FSMs) are required to report several items related to a property’s condition prior to sale or conveyance. These specific reporting requirements offer inspectors another avenue to diversify their skills and service offerings in an effort to improve or stabilize work volume. One of the most important of these reports is referred to as the HUD Property Inspection and is completed using the HUD Property Inspection Report (HPIR). This type of inspection is far more in depth than a typical interior inspection and requires the inspector to have a solid understanding of pre-sale property preservation and its requirements for a HUD property. Timeframes for completion are stringent for this service and are dictated by the FSM and HUD. The four-page HPIR form consists of basic property information followed by three major parts:

Part I – Conditions for Conveyance

Part II – Initial Inspection Report

Part III – Property Condition Report

Basic property information captured via this inspection consists of several fields including:

● Property Vacancy

● Property Type

● HOA/Condo/Subdivision Contact Information

● Lock Box Installation/Code

● Pre-Conveyance Activities by Mortgagee

Securing

Winterization

Lawn Maintenance

Broom Sweeping

The first major section, Part I – Conditions for Conveyance, requires inspectors to answer a series of questions related to the property. This part consists of four sub-sections capturing: conveyance conditions, items requiring repair or replacement, damages present and a report of post-conveyance activities carried out by the FSM.

Item Conveyance Condition Questionnaire

● Inspectors are required to report on the status of major systems at the property including:

∙ HVAC

∙ Electrical

∙ Major Appliances

∙ Water Supply

∙ Sanitary Facilities

∙ Roof

∙ Structure

Repair/Replace Estimate for Items

● Inspectors are asked to categorize property condition findings indicating if reported items are

∙ Damaged

∙ Missing

∙ N/A

● Repair/Replacement estimates are requested for each item listed

Additional Conveyance Condition Items (Damages)

● Inspector provides characterization of any damages present at the property resulting from:

∙ Mortgagee Neglect

∙ Fire, Flood, Hurricane, Tornado, Earthquake or Boiler Explosion

∙ Mold, Wetness or Standing Water

Post-Conveyance Activities Completed by the FSM

● The inspector is asked to report on the status of activities typically carried out by the FSM including:

∙ Lock Installation/Rekey

∙ Glass Pane Replacement

∙ Window Lock Replacement

∙ Yard Maintenance

∙ Exterior Clean Up

The second section, Part II – Initial Inspection Report, examines the property in more detail. Inspectors will be asked to answer a series of 16 questions intended to provide an accurate representation of the property and its current status including:

● Securing

● Boarding

● Debris Removal

● Interior & Exterior Walls

● Flooring

● Winterization

● Roof

● Sump Pumps & Flooding Concerns

● Yard Maintenance

● Lead-Based Paint (for homes built prior to 1978)

The third and final section of the HPIR, Part III – Property Condition Report, is intended for use when verifying the functionality of the major systems. Columns are provided to indicate whether or not the system was tested and/or functional and how this information was determined. Fields are also provided to include additional notes regarding conditions at the property that are not adequately explained or addressed previously within the report including:

● Unaddressed code violations/postings

● Pending litigation

● Standing demolition orders

● Any other legal concerns that may have bearing on the property

The information captured during this inspection is submitted to the HUD Asset Manager and is verified against their findings during their mandated inspections.