Foreclosure Inspections: Trust Your Gut.

[Nick Gromicko]

Foreclosure Inspections

[Gary Farnsworth]

I have been getting the drift recently, and never in the past, that banks and lenders are not trusting any inspection performed on a home that they want to lend the money on, that was hired/suggested by a real estate agent. Banks and lenders are only the ones in the middle. Investors, foreign and in the U.S., are the ones that are putting up the money for loans, and want to know everything they can about the property they are investing in.

I do not blame them.

I have been hearing war stories about appraisers, agents, banks, all trying to make money on properties being sold in "as is" condition, and "trotting" around new laws. Some of these homes already have liens on them, and the buyers are not being totally informed of title issues until the last minute. Lenders are even starting not to trust seller disclosures, if there even is one.

Nick and InterNACHI have an opportunity here for these lenders and investors. The integrity of our profession is at a crossroads. Our inspection reports must be detailed and as comprehensive and complete to the best of our abilities, especially on foreclosed homes. Other people, besides buyers and lenders, are watching.