It is always a good idea to have a home inspection.  It is imperative to have a home inspection when your clients are buying a lender owned property.  The sad part is that many buyers will bypass this step to save money when they are in the lower price points.  Personally, I don’t know how comfortable I would be representing clients who refused to inspect a property.

 

Today was home inspection day for my clients and it was a disaster.  The house will definitely not meet FHA standards.  Truthfully the house is an excellent deal for the right buyer, my first time home buyers are not those buyers.  It had plumbing that needed to be replaced, mold issues, electrical issues, and a termite infestation that might very well extend to every stud in the house!

 

I wonder what future ramifications there will be for the lenders selling these homes.  They have to inspect the house in some way when they take it back, they have to have some knowledge of these problems, and they are choosing not to disclose them.  I can understand that the lenders are trying to negate as much of their loss as possible, but how can they justify selling some of these homes to people who will find themselves in the real life version of the “money pit.”  The karma that will swing back around is unbelievable.