Foreclosure Home Inspection

1. 1.Invest in a home inspection. For about $300-$400 dollars, a home inspector can provide a complete report on the structure, mechanical and major components of the home and property, adding that a home inspection by a properly credentialed home inspector will give you a better picture of what you are buying and provide you with the framework to prioritize your repairs—or to walk away if it’s too much to handle.” 2.Seek out information on the house’s history. Many states require sellers of real property to complete a Seller’s Property Disclosure Statement (SPDS) as a part of any transaction. The SPDS typically reveals any known material defects related to the property and provides the buyer with a historical perspective of the home, its maintenance, as well as any repairs or additions performed under the previous ownership, Often, however, these statements have certain exclusions, such as when a home is transferred between a husband and wife or between siblings. Another common exclusion is when a third-party seller, such as a bank or lending institution, owns the property as a result of a foreclosure. When you purchase a foreclosure property from a bank that’s never been in the home, you lose the historical perspective as a buyer, a home inspection can help you learn about changes that may have occurred over the life of the property. 3.De-winterize the home. If you plan to purchase a home that’s been unoccupied for several months, the first thing you should ask is, ‘Are the utilities turned on?’” In foreclosed homes in many parts of the country, the water is off, traps are filled with environmentally friendly anti-freeze, and water lines may be pressurized with air or blown out and fully drained, to keep pipes from freezing and breaking, Prior to a home inspection, the lines will need to be pressure-checked and energized. And, you may need a licensed electrician to conduct a safety check on the property’selectricity before power is restored. Each municipality has its own rules, “and out-of-town buyers may be required to pay a fee to turn on power and things can get complicated if there are three or four utilities to call before you can get everything operating. A good real estate agent should be able to provide you with referrals.

2. 4.Check for plumbing problems. The most catastrophic problems in abandoned or foreclosed homes are often caused by broken plumbing pipes or leaks. Sometimes when you dig beneath the surface of a leaky toilet bowl that’s been shoddily repaired you’ll find that you not only have to replace the lead bend, but also whole floors, floor joists, and drywall that’s rotted or contains mold, controlling a mold problem can cost anywhere from a couple of hundred dollars to $20,000- $30,000 or more to repair and replace whole floors and walls made of plaster or drywall. 5.Investigate mechanical, water-heating, and electrical systems. In abandoned houses with forced-air systems, dirt and debris and even small animals accumulate in the duct work, and if humidity has been around boilers or furnaces for long periods of time, the heat exchangers can corrode and you’ll need to replace them altogether. This can cost between $3,000- $5,000, depending on the type of system you’ll need. Some utilities won’t light the pilot light of gas systems if the filters are dirty for fire safety. This means you’ll need to assume the cleaning expense to test whether they’re operable. 6.Look for signs of deferred maintenance. When owners simply give up and stop taking care of their home, there will be lots of maintenance issues, like the need to clean the gutters, clear debris off the roof, cut back overgrown vegetation, and caulk/seal tile in showers and tubs, who adds that in certain distressed areas it isn’t uncommon to find that appliances, condensing units, and ceiling fixtures have been removed altogether. cheap repairs, like using duct tape or plumber’s putty over a leaking pipe or unprofessional wiring of a fan can also lead to deeper problems, like mold or fire hazards, which may require costly fixes down the line. 7.Check for foundation cracks, roof, leaks and other exterior damage. We tend to see it all—bad roofs, structural issues, water damage, and other big- ticket repair items, In arid climates, like Texas, the foundations of houses need to be watered or they can crack and ruin the house, For a home with a pool, its recommended to contacting a pool service to be sure the underground piping and equipment isn’t cracked or clogged. A normal house inspection will cover the general condition of the pumping and

3. filtering, the patio area, coping stones, and skimmers, but a pool service can try to get the system up and running to see if there’s any significant equipment damage, If there’s a problem, the owner may give you credit to get it running properly again. 8.Conduct a sewer scope. Especially for homes more than 20 years old, its suggested investing in a sewer inspection. Lines can be broken by tree roots, or they may not be properly connected to public systems. The lines may also be rotted, clogged, or damaged. A plumbing company can snake a video camera through the line to determine its condition. 9.Resolve any liens. Many municipalities have regulations regarding the maintenance of properties, If a bank owns a property, it will generally keep a lawn cutting schedule, but if it fails to do so, the municipality can place a lien on the property if it has to come in and maintain the lawn itself. Any number of other liens may have been placed on the property by unpaid contractors, utilities, homeowners associations, and the like. Prior to closing on a property, you’ll need to make sure all liens are thoroughly investigated by you and a title officer and remedied before title can be conveyed from the previous owner to you. 10.Re-key all the locks. A lot of houses are on a master key system. That means countless brokers, contractors, appraisers, and other people could have that key. If you purchase a foreclosed home, its advised protecting yourself and your property by immediately installing new locks with new keys throughout before you move in. For more information regarding foreclosure properties and tips visit http://reprisesdefinancemontreal.com