By Linda Almlie,
In the “real estate bank owned” culture we are in now, the new buyer should be diligent in obtaining independent home inspections.
Banks and mortgage companies are not in the business of owning and maintaining properties. They are exempt from providing a Transfer Disclosure Statement disclosing problems with the property but not the Seller’s Statutory Disclosure. They also require the purchase to be “as is” with no recourse.
Usually a homeowner takes care in maintaining their home, but a delinquent homeowner who is being foreclosed upon does not care to spend more money on a disappearing asset.
Many times these foreclosed properties have missing appliances, plumbing, electrical and central heating /air conditioning units. I heard of a home last year that had all the plumbing pipes removed from under the home.
So, do your own home diligence. Check if the property is on septic or sewer. If it is on septic, have an inspector ascertain the condition of the holding tank, leach lines and if it needs to be pumped. Next, hire a certified home inspector. After receiving the report, check for noted items to be checked out further. For instance, the report may mention water intrusion in the attic or a cap off a vent. These reports are very extensive in their comments about the condition of the home.
If there is a pool on the property, have a pool inspection performed. This should include self-closing gates with an alarm system on each door that goes to the outside surrounding the pool area.
Once you have obtained and approved your reports for all items on the home, you are ready to release your contingency for the investigation time. Remember, the lender/owned property does have to notify you of any adverse problems on the property. They do have to tell you if it is in one of the natural hazard areas; they have to provide you with the condominium documents; the lead based paint hazards disclosure and a smoke detector compliance document. Other than the above, they are free of any further investigations.
We, as Realtors, will follow through with all the inspections that are necessary for you to make your final decision on the purchase. While you are at work, we can handle the daily work items to your satisfaction.
