New home buyers should be extremely careful regarding hidden character defects of a foreclosure real estate buy. Recent national real estate data reports that the majority of real estate transactions are now part of a foreclosure course of action. At the same time, a meaningful percentage of these buyers at forgoing the recommended specialized home inspection course of action. Buyers are skipping this prudent inspection course of action is some situations because they have been misinformed by the bank, and others, that the character will be only sold “as is” and no repairs will be completed. As an experience real estate inspector (involved in hundreds of foreclosure inspections), I can report that the “as is” rational to forgo a specialized home inspection will not only cost the buyer thousands of dollars in buy price and repair losses, but will also put the buyer’s family at risk from undiscovered safety and environmental hazards.
Having a foreclosure home inspected diligent specialized is as important as inspecting a home where the occupant homeowner is obtainable – maybe more so. Sellers and their representatives are required to disclose all known meaningful defects. But, if a foreclosure home is owned by a bank, the bank has never lived in the character, so it is not likely there will be very much information on any disclosure statements. In this situation, it is especially important to take the necessary steps to know the true condition of the character. Homes usually go into foreclosure because the owner can no longer provide the mortgage payments and has moved out. As a consequence, maintenance and repairs get neglected in addition. In many situations the owner or tenant is angry, and truly removes or destroys major systems in the home. It is basic that buyers know the condition of the structure and all the major systems. Only a Certified Real Estate Inspector will provide that information.
The “as is” statement, has been promoted as meaning the bank will not fix any defects found. My experience is just the opposite. My inspection clients have reported that edges are often responsive for expensive and or safety danger defects reported by a Certified inspector. already if the bank is unwilling to negotiate over any discovered defects, the information the buyer receives from a thorough home inspection is highly useful in making an informed buy decision. And already if there are plans to do meaningful remodeling, why risk discovering problems with the furnace, foundation or structure after you close escrow and begin work? Better to eliminate any big financial, environmental and safety danger surprises by knowing up front about problems by getting a detailed home inspection. The inspection course of action is really the only way to find out if the foreclosure character is really a good financial deal or not.
Homebuyers, edges and or sellers should retain the sets of qualified inspectors trained and experienced in home inspection. It is also critically important that the inspector be a certified member of a well-established specialized association such as ASHI (American Society of Home Inspectors). ASHI is the largest and oldest inspection association in the country. Certified ASHI inspectors must to pay attention to CREIA’s Code of Ethics and follow the Standards of Practice developed and maintained by the Association. Recognized by national consumer associations, these Standards of Practice are considered the source for Home Inspector Standard of Care by both the real estate and legal communities.