Industry Reference
Property Preservation Glossary
32+ terms defined — from initial secures to conveyance conditions. The reference guide for servicers, asset managers, field crews, and property teams.
A
- Allowable (Cost Allowable)
- The maximum reimbursable amount a servicer or investor will pay for a specific preservation service. Allowables vary by investor (Fannie Mae, Freddie Mac, FHA) and are published in their servicing guides.
- Asset Manager
- A professional who manages a portfolio of REO or investment properties on behalf of an investor, bank, or government agency. Asset managers coordinate preservation, marketing, and sale of properties in their portfolio.
B
- Bid (Work Order Bid)
- A cost estimate submitted to a servicer or client for approval before preservation work begins. Bids include itemized services, quantities, unit costs, and photo documentation of the condition requiring work.
- Board-Up
- Installing plywood or polycarbonate panels over broken windows, doors, or other openings to secure a vacant property against unauthorized entry, weather damage, and animal intrusion.Learn more →
C
- Code Violation
- A citation issued by a municipality when a property fails to meet local maintenance, safety, or zoning standards. Common violations on vacant properties include overgrown vegetation, unsecured openings, and accumulated debris.
- Conveyance
- The legal transfer of property ownership, particularly from a mortgage servicer to a government agency (HUD, VA, USDA) or investor after foreclosure. Properties must meet specific condition standards before conveyance.Learn more →
- Conveyance Condition
- The required property condition standard set by HUD, VA, USDA, or the purchasing entity for property transfer. Properties must meet specific maintenance, safety, and documentation requirements before conveyance is approved.Learn more →
D
- De-Winterization
- Reversing the winterization process in spring: restoring water supply, flushing antifreeze, testing all plumbing fixtures for leaks, and verifying HVAC functionality. Typically required before property sale or occupancy.
E
- E&O Insurance
- Errors and Omissions insurance, a type of professional liability coverage required for property preservation vendors. Covers claims arising from mistakes, oversights, or negligence in preservation work.
F
- FHA Property Preservation
- Property maintenance and preservation work performed on properties insured by the Federal Housing Administration. FHA has specific timelines, documentation requirements, and allowable cost schedules for preservation activities.Learn more →
- Field Vendor
- A contractor or company that performs property preservation and maintenance work in the field. Field vendors are typically managed by national or regional preservation companies and must meet insurance, licensing, and quality requirements.Learn more →
G
- General Liability Insurance
- Insurance coverage that protects against claims of bodily injury, property damage, and personal injury. Most servicers require field vendors to carry $1 million or more in general liability coverage.
- Grass Cut
- Routine lawn maintenance on a vacant property, typically performed on a recurring schedule (bi-weekly or monthly). Includes mowing, edging, and sometimes weed treatment to maintain curb appeal and prevent municipal code violations.Learn more →
H
- Hazard Claim
- An insurance claim filed when a property sustains damage from a covered hazard (fire, storm, vandalism, flood). Property preservation companies may perform emergency securing and damage mitigation before the claim is processed.
- HUD Compliance
- Adherence to the U.S. Department of Housing and Urban Development's standards for property condition, maintenance timelines, photo documentation, and reporting. Non-compliance can result in penalties and claim denials.Learn more →
I
- Initial Secure
- The first property securing visit after a property enters preservation status. Includes changing locks, installing lockboxes, boarding broken windows, and securing all entry points. Required within 24-72 hours of assignment for most servicers.Learn more →
L
- Lockbox
- A secure combination or key-based lock container mounted on a property to provide authorized access. Standard in property preservation to allow inspectors, contractors, and agents entry without rekeying.Learn more →
M
- Make-Ready
- The process of preparing a property for sale, lease, or occupancy after vacancy. Includes repairs, cleaning, painting, flooring, appliance checks, and any work needed to bring the property to marketable condition.Learn more →
- Mortgage Servicer
- The company that manages a mortgage loan on behalf of the investor who owns it. Servicers are responsible for ordering and overseeing property preservation on defaulted and foreclosed properties in their portfolio.
O
- Occupancy Check
- A physical inspection to determine whether a property is vacant, occupied, or shows signs of recent activity. Includes checking utilities, mail, personal property, and talking to neighbors. Required before preservation work begins.
P
- Photo Documentation
- Timestamped photographs taken before, during, and after preservation work to verify completion and compliance. Most servicers require specific photo sequences with date/time stamps and GPS metadata.Learn more →
- Preservation Transfer
- When responsibility for a property's preservation moves from one vendor to another. Requires a detailed property condition report, key/lockbox transfer, and documentation of all pending work orders.
- Property Condition Report
- A documented assessment of a property's current condition, including photographs of all rooms, exterior areas, systems, and any damage or code violations. Used for compliance reporting and servicer communication.Learn more →
- Property Preservation Company
- A company that provides field services to maintain, secure, and protect vacant, foreclosed, and managed properties. Services include securing, lawn maintenance, cleanouts, repairs, winterization, inspections, and compliance documentation.Learn more →
R
- Re-Secure
- A follow-up securing visit to restore property security after a break-in, vandalism, or other breach. May include new lock changes, additional boarding, and updated photo documentation.Learn more →
- Recurring Service
- A preservation activity performed on a regular schedule — typically lawn maintenance (bi-weekly/monthly), property inspections (monthly), and seasonal maintenance. Recurring services continue until the property is conveyed or sold.
- REO (Real Estate Owned)
- Property owned by a lender, typically a bank or government agency, after an unsuccessful foreclosure auction. REO properties require ongoing preservation services until resold.
S
- Scope of Work
- A detailed description of all preservation or maintenance tasks to be completed on a property, including specific services, quantities, materials, timelines, and quality standards.
T
- Trash-Out
- Complete removal of debris, personal property, and trash from a vacant or foreclosed property. Often the first step in property rehabilitation. Volume is measured in cubic yards for pricing purposes.Learn more →
U
- Utility Activation
- Turning on utilities (water, electric, gas) at a vacant property, typically required before inspections, repairs, or winterization/de-winterization work can be performed.
V
- Vacant Property
- A property that is unoccupied and shows no signs of regular habitation. Vacant properties are vulnerable to deterioration, vandalism, code violations, and liability issues, requiring regular preservation and maintenance.
W
- Winterization
- The process of preparing a vacant property's plumbing and HVAC systems for cold weather. Includes draining water lines, adding antifreeze to traps and fixtures, shutting off water supply, and insulating exposed pipes to prevent freeze damage.Learn more →
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