Property conditions are generally contingent on several factors. Of course occupancy status is the primary factor but there are several others including usage and who resides in the property (i.e. owner occupant vs. rental/tenant).

However, the key underlying issue is who “owns” the property and is “responsible” for it.
With all the concerns with “zombie foreclosures” a bank holding a traditional mortgage has a vested financial interest in the maintenance and upkeep of the property serving as the collateral.

Following one entry in 2018, now a new player has entered the playing field. In what appears to be an updated rent-to-own program, they seek to offer a new generation of homebuyers a different option than the traditional mortgage.

What will the impact be on communities? In regards to property condition the new entity advertises;

“Improvements are Encouraged – Investing in home improvements will enhance your daily living experience and may increase your home’s value. As your partner in homeownership, for any approved home improvements, Fleq will either reimburse you for its pro-rata share of the costs or issue you new equity in the partnership equivalent to the increase in value of the home.”

To view a recent article from Housing Wire on Fleq, please click here.

To view an article from Housing Wire on Divvy, please click here.

Please click on the following links to access the respective company websites.