Why Would a Mortgage Company Send Someone to Take Pictures of My House?
When a mortgage company sends someone to take pictures of your house, this step is often performed to document the current condition of the property. This practice is crucial for the mortgage company, as it helps them maintain records and makes it easier to enforce the terms of the mortgage agreement. Here’s a breakdown of the reasons behind this:
Finding Security and Ensuring Compliance
When a mortgage company has a loan on a house, the house is often used as security for the loan. If the house is being neglected or damaged, the security of the loan itself is compromised. Taking pictures allows the mortgage company to record the state of the property at a specific point in time. If the house falls into foreclosure, these pictures can serve as evidence of its condition during the mortgage period.
Occupancy Inspections During Arrears
If you are 45 days past due on your mortgage payments and have not contacted the mortgage company, an occupancy inspection might be ordered. These inspections are a routine part of the process when there is a failure to keep in contact with the lending institution. Similarly, in disaster-prone areas, mortgage companies may send inspectors to assess the damage and understand the extent of the repair needs.
Enforcing Maintenance Clauses
In the mortgage documents you sign, there is a clause requiring you to keep the property in good repair. This clause is not just a formality; it’s a binding agreement. Failure to comply with this clause can result in foreclosure. Pictures taken by the mortgage company can serve as evidence if the property is found to be in poor condition. This can lead to legal action or foreclosure proceedings.
Key Areas of Concern
The photos taken by the mortgage company typically focus on several key areas:
Occupancy concerns: If the property is occupied but not maintained properly, the mortgage company could use this as grounds for action. Condition of the collateral: If the property is not in the agreed-upon state of repair, this can impact the security of the loan. Blatant health violations: If there are obvious health or safety issues, the mortgage company has the right to act to protect other stakeholders.Regular Documentation
Some individuals and small businesses take proactive steps to document the condition of their property even when there is no immediate issue. A regular photo shoot can provide them with valuable evidence of the property’s condition, which can be useful for insurance claims, tax purposes, or other reasons. This practice helps in maintaining transparency and accountability for the property.
Understanding the reasons behind why a mortgage company takes pictures of your house can help you stay informed and proactive in maintaining the property. Whether for security, compliance, or other reasons, these pictures can have a significant impact on the mortgage process and the future of the property.