What if my property has damage beyond normal wear and tear when I go to repay my Home Equity Investment?

If your property has sustained damage beyond what is considered normal wear and tear, it could have implications for your Home Equity Investment (HEI), particularly if you are requesting to repay the Home Equity Investment.

When determining the final payoff amount of your HEI, we may need to assess the property's value as if these damages were repaired. This is because the initial valuation of your HEI was based on the property's condition at that time, and significant damage can affect its current market value. However, you can always have the damage repaired in order for Point to re-evaluate the Final Home Value.

Examples of property conditions that are typically considered beyond normal wear and tear include, but are not limited to:

Structural Integrity Issues:

  • Significant cracks or shifting in the foundation.
  • Obvious signs of major structural damage such as bowing walls or a sagging roof.
  • Rotting or significantly weakened structural beams or supports.
  • Large holes in walls or ceilings.
  • Missing flooring.
  • Broken or cracked windows that compromise security or weatherproofing.

Safety Hazards:

  • Exposed and unsafe electrical wiring.
  • Major plumbing leaks that have caused structural damage or fostered mold growth.
  • The presence of hazardous materials like asbestos or lead-based paint in a dangerous condition.
  • Non-functional or severely damaged heating, ventilation, and air conditioning (HVAC) systems in regions where they are essential for habitability.

Severe Deferred Maintenance:

  • A roof with extensive damage or leaks that is nearing or has exceeded its expected lifespan.
  • Widespread water damage throughout the property.
  • Conditions that pose a health hazard, such as significant mold growth or pest infestations.
  • The condition of a pool, especially if it has been removed or is unusable due to disrepair.

Additionally, if any of the conditions listed above, or other significant property issues beyond normal wear and tear, were present at the time of your Point Application but were not disclosed, we would need to determine the value of the property as if these undisclosed damages beyond normal wear and tear were repaired, which could affect the final repayment amount.