REO Bank-Owned property sales are plentiful in Northern Utah right now and they can attract buyers looking to save money.

The biggest issue with REO properties is that they are bank owned and come with virtually no disclosures. In other words, they are truly a “Buyer Beware” purchase. Sold “As-Is”, the more that a prospective buyer knows about the property, the better the offer they can make. The sure fact is that once the deal is completed, there is nobody to go back upon later when you find major issues that you were unaware of when you made your offer. This is where the inspection process really benefits those that invest in a REO Bank-Owned properties.

There are 4 different types of inspections available for REO properties.

1)SELF INSPECTIONS - While narrowing down the long list of properties, you should download our “Self-Inspection” form to aid you in keeping track of the properties and projecting purchase and repair expenses.

DOWNLOAD THE SELF INSPECTION FORM

2) PRELIMINARY REO REPORT - We offer a very limited Preliminary REO Report form a very low fee. This report is a quick collection of observations about the property and is designed to be downloaded by many prospective buyers to help them narrow down the prospects. The Preliminary REO Reports are not prepared for any particular client and they can alert you to issues that you may have overlooked.

VISIT OUR PRELIMINARY REO REPORT DOWNLOAD CENTER

BONUS - Any fees that you invest with our firm on Preliminary REO Reports can be applied in full towards the full home inspection on the property you ultimately decide to purchase.

3) WALKTHROUGH REPORTS - Some investors prefer to show up onsite with their own notepad and walk the property with our inspector and take notes. There is no final written report and the inspector’s time is billed by the hour with a 1.5 hour minimum fee.

PLACE YOUR WALKTHROUGH INSPECTION REQUEST

4) HOME INSPECTION REPORT - Once the client decides which house or houses look like their best options, then we recommend our traditional home inspection and detailed written report covering the systems and components of the home. The fee may be between $335 and $885 or more, depending on the size of the mansion, but when you are buying the property “As-Is” and without any disclosures, then the home inspection is one of your best asset protections.

ORDER YOUR REO HOME INSPECTION

OTHER INSPECTIONS - Along with the full inspection, you should consider our other inspection services, such as Crystal Meth, Radon, Termites, and invasive Stucco Testing. Each service will offer you that much more information to help you protect your assets. Imagine moving in without the extra tests and then going to resell in 3 years only to find that a $2,400 radon mitigation system is needed, along with a $6,000-$24,000 crystal meth contamination to clean-up. We encourage all REO investors to take advantage of their “Due Diligence” options and invest in all of the tests and inspections that they can afford.

ORDER YOUR “OTHER INSPECTIONS”

BE CAREFUL - As a prospective buyer, you need to be very patient in an REO Bank-Owned purchase. The bank dictates the process and the transaction can be very delayed. I have seen some banks stonewall the inspection process by rushing the agreement period and making it near impossible to get the utilities turned on for inspection. Buyers need to be prepared to pay all of the fees involved with getting the utilities turned on and off again. The expense is deemed appropriate since the buyer is getting “such a good deal.” Whether or not it is a good deal, greatly depends on what turns up during the inspection process.

ANGER & SABOTAGE - Prospective REO Bank-Owned purchasers need to realize that most prior owners are not very happy when they are foreclosed upon. I have witness vandalism, damage, and sabotage by those evicted from their homes in the foreclosure process. Sometimes they take all of the appliances. Other times the light fixtures will be missing. Holes are often beaten through walls, and some evictees flood the home to cause major damage. The visual sabotage is pretty straight forward to document. As a long time inspector, I become much more sensitive to all of the unseen damage that a frustrated owner can do to discreetly sabotage the home.

REAL LIFE STORY - A few years back I was called upon by a younger couple looking to purchase a Sandy, Utah REO Bank-Owned home. I urged them to get the utilities on and they were having success with the power and water, yet the gas was proving to be an issue. They heeded my stern advice and they paid the fees and back payment penalties needed to get the gas turned on. I clearly remember the backlash that I was taking from their agent who was pressuring them to forego the inspection process and just close on this really great deal.

I remember arriving at the home and starting the inspection when the gas company finally arrived. So far the home looked to be in pretty good condition. Once the gas was turned on we cranked up the forced air heater and the moment that the hot air passed through the duct work we came out of the house coughing and gagging. “What had died in the ductwork?” we wondered. It turned out that the  somebody, probably the owner, was upset and had poured (we presume) urine down many of the main floor heat registers. The urine flowed through the ducts and leaked out the joints onto the basement ceiling drywall below.

The result of the urine sabotage was the need for all of the ductwork to be removed after the basement ceiling drywall was removed. This greatly altered the transaction and even though this was “As-Is”, the bank renegotiated the deal to cover the great expense of the newly identified health risk. But what would have happened if the gas was not turned on until the deal was consummated? The buyers would have been stuck with the expenses of the toxic cleanup process. What would have happened if the bank had not agreed to pay for cleanup? My clients could have gotten bids and made the decision to either budget for the upgrade or walk from the deal altogether. Almost needless to say, I am adamant about REO Bank-Owned purchasers needing to get the utilities turned on for the inspection... I never would have known about the urine sabotage without the ability to run the furnace during the inspection.

• SELF-INSPECTION DOWNLOAD FORM
• REO BANK-OWNED
• SHORT-SALES
• FORECLOSURES
• BANKRUPTCIES