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Foreclosure Assessments

WHAT IS THE PURPOSE OF A FORECLOSURE ASSESSMENT?

Foreclosure Assessments are for both the private individual looking for an affordable home and for Banks / Mortgage holders. It has been our experience that many foreclosures have been damaged, sometimes this damage is hidden to the extent that the Lender nor the Real Estate Company (listing agency or buyers agency) do not realize that such damage can be very costly.

For the private individual to put a contact on a home, have an inspection done only to find out that 1.) there are damages and 2.) those damages exceed the value of the home can be costly. While we are in business to make money for providing inspections......... to see a client spend over $1000.00 in inspection fees over the course of trying to find a home they can afford is disheartening. It also sheds a bad light upon the Real Estate Agent who are often do not have the experience in recognizing a unprofitable foreclosure from one that is a good deal, it is for this reason that many agents to not like to show these type of homes.......and many home inspectors do not like to inspect such because of the time frame it takes to inspect a foreclosure plus the construction knowledge it takes to properly evaluate a foreclosure.

For the Lender who holds the deed to these type of homes they need to be able to properly evaluate these properties to determine a course of action prior to listing the home or simply putting it up for auction. We have seen foreclosure homes that would have gone for more money if the lender would have simply made a few minor repairs prior to listing the home or during a transaction.

CASE IN POINT

Recently we inspected a foreclosure home for a young couple just starting out. Upon arrival we found a leaky plumbing supply line which resulted in a small flood in the kitchen, living room and hallway area.. After turning off the water we notified the listing agency immediately to which they would advise the lender and take care of problem. The lender could have spent around $300 in having the water cleaned up and the problem fixed, instead what had transpired was that either the listing ag ency failed to pass the information onto the Lender or the Lender simply failed to act........in the end what would have been a simple fix ended up not only costing them the deal but resulted in over $5000.00 in additional need for repairs.

HOW THIS INSPECTION DIFFERS FROM A REGULAR INSPECTION

These inspections differ in that other than for the Lender who often has their own report format that we can utilize, we simply are using our contractor's knowledge in helping our client determine if the home is a good deal. There is no need to spend $130,000 on a foreclosure with a tax value of $150,000 when their are over $30,000 in repairs. The overwhelming majority of home inspectors can not give you an estimate for such homes because as we have indicated on our website that most home inspectors have very little working knowledge in the construction field.......in essence you are simply wasting your money on hiring them.

Lender failed to address water issue resulting in even more damage to home.

It is for this reason we simply offer our service from a "consulting" standpoint.  In such cases it is best to have us look at several properties in one day and then based upon our findings you can determine if you want us to do a full inspection on one of those properties that we feel would be better suited for you.  There is always the possibility of hidden damage that no one could anticipate however we make every attempt in finding such issues ahead of time.

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Contact Information

Inspector: Jeff Haynes

Phone: (704) 791-0318

Email: jhaynes417@gmail.com