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Who Is Responsible for the Inspections on a Foreclosed Property?
When someone who has borrowed money to mortgage a property fails to make payments to the lender and is delinquent on that loan, the default mortgage process begins. If repayment does not resume or arrangements are not made with the mortgage servicer, the property moves through the foreclosure process.
These foreclosed properties are assets of the banks and need to be regularly checked and maintained to ensure the property is not damaged or vandalized.
What is a Foreclosure Inspection?
Now, irrespective of the foreclosed property being residential or commercial, it needs to be inspected. Generally, this inspection is done to ensure the property is intact. Any kind of damage caused to the property, any vandalism, any kind of pest problem and overgrowing of trees, and deposition of the debris are the things that need to be checked.
At SGPNow, the property inspectors check every nook and corner of the house, internally and externally, and provide a detailed report. You can read in detail about the complete procedure of property assessment.
Importance of Foreclosure Inspection
After it is confirmed that the borrower will not repay the loan, foreclosed properties are generally put up for auction, sold to investors who will rent them out, or sold to residents planning to call them home. But before the property is brought into use, it needs to be checked and inspected thoroughly. Since the property would have been vacant for a long time, there are chances that there could have been a roof leak. The leak might have led to mold. The property could be infested with raccoons, rats, insects, or any other kind of pests.
Squatters may have taken shelter in those properties or they could be vandalized, as well. There may be furniture or a few of the things missing or damaged within. In worst cases, the waterline or electricity line would have been hampered and non-operative. Thus it becomes very important to inspect the foreclosed property.
What is the role of foreclosure inspection companies?
The job of the foreclosing company is to hire a property inspector to assess the foreclosed property thoroughly.
Next, the inspector goes out to the property and checks to confirm its occupancy status. Once it is clear that the property is vacant, the inspector must begin the duty of walking through the property and taking photos and, in some cases, video of the property to include in the comprehensive report.
The entire property needs to be assessed and relevant photos must be taken starting from the street view, front door, kitchen, living room, bedrooms, bathrooms, basement, garage and all outdoor spaces. The inspector must check for the plumbing, heating and the electrical connection as well ensuring if it is intact or not.
SGPNow is well experienced with property inspection services with the industry's experts as their inspectors.
Jun 16, 2021
One thing should be added to your article, make sure the water is turned off if in cold weather area. I worked for a management company managing 8000 units. Every winter I had to go to flooded out units due to frozen pipes.
Damage was never discovered until units on either side also flooded.