HUD GUIDELINES

Property Preservation HUD Guidelines

A cubic yard is a unit of volume. It tells you how much space something occupies. Picture in your head a box that measures three feet on each edge. The space inside that box measures one cubic yard.

A cubic yard is equal to 27 cubic feet. One cubic foot holds about 7.5 gallons – so, one cubic yard is about 200 gallons of liquid. Picture in your head 200 one gallon milk jugs. Regardless of how you arrange them, as long as they are tightly grouped, they will occupy approximately one cubic yard.

Other visuals that may help:

  • A kitchen built-in dishwasher is about one cubic yard.
  • A regular 1/2 ton pickup truck bed filled level to the top of the bed is about 2 cubic yards.
  • A living room couch is about 2 cubic yards.
  • A kitchen free-standing stove is about one cubic yard.
  • One twin-size mattress is about 1/2 cubic yard.
  • One small filing cabinet (the small cheap kind) is about 1/4 cubic yard.

Contractors can very easily lose money when bidding debris removal by the cubic yard. Unfortunately HUD Regulations require bidding in cubic yards and pays for debris removal by the cubic yard. Although no allowance is made in the regulations and most companies have no provisions for “real world” circumstances, rather than loose money on debris removal explain in narrative form why your bid is above the authorized HUD fee. Do not bump up the cubic yard measurement as that does not explain the circumstances and warrants a possible charge back.

Editor’s Note: We have some simple rules at our property preservation business – if there is no profit in it, we’re not going to move it. We will move one cubic yard of gold bullion for free. One cubic yard of crushed stone in the front yard of a vacant home is going to cost considerably more than the allowable.

This is in no way official – it just came out one day in conversation and it seems to answer the question: Safety hazards are those things that can hurt you. Health hazards are those things that can make you sick. Some items, situations, environments, etc. can fall into both categories. Both health hazards and [...]

Boarding service requirements are located in Attachment 4 of the HUD “General Requirements For Preservation And Protection Of Properties Securing FHA Insured Mortgages“.  Although there is some ambiguity in Attachment 4, it really is one of the better detailed attachments.  Specific instructions are given for what should be boarded and when and what materials should [...]

HUD regulations do not state the need for a license of any type.  The General Requirements  portion of the regulations states, under paragraph title: Mortgagee Responsibility: ” A Mortgagee may use any individual or firm to perform preservation and protection services on properties securing FHA-insured mortgages, however, the Mortgagee remains fully responsible to HUD for its [...]

Some companies require: Bids for the fee to be charged on property re-cuts throughout the grass cutting season must be submitted when bidding the initial cut.  If a re-cut bid is not received with the initial cut bid, then all re-cuts during the season must be done for the HUD allowable. HUD Regulations do not [...]

For some reason we have been failing to add our outgoing links to CubicYard but they are now on the front page. Look in the far right hand column and you will see four new categories of links: jobs and stuff other places real estate auction companies tax sites If you want to see what [...]

States that require property winterization year round: Alaska Illinois Indiana States that require property winterization September 1st through April 30th: Florida (Jacksonville north to the Georgia line) Iowa Kansas North Dakota Oklahoma Missouri Minnesota Montana Wisconsin Wyoming States that require property winterization September 15th through April 15th: Nevada (Reno) Washington States that require property winterization [...]

Attachment 5, paragraph III. Hazardous Waste Removal, states:”Materials considered unhealthy or hazardous that should be removed prior to conveyance include but are not limited to: Decaying food or other organic matter; Dead animals and animal feces; Pest infestations (see below); Broken glass or other sharp objects; Large containers of liquids; Large quantities of paint or [...]

There are many methods to determine vacancy and the HUD regulations specifically state these four in Attachment 2, paragraph I, sub-paragraph C: (i) checking utility meters to determine if they are on (ii) contacting the listing broker if there is a for sale or rent sign on the property (iii) observing general maintenance and (iv) [...]

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