Foreclosed Properties

Unless you’ve been living in a cave for the last couple of years, you know that we are currently seeing an unprecedented wave of foreclosures.  Though this means hard times for the homeowners and lenders, it could mean a windfall for home buyers or investors.  Buying a foreclosed home or commercial property, however, can come with its own special set of problems.   One very real problem is that the real estate boom of the 1990s and 2000s often brought some fairly slapdash construction techniques.  Why was the home foreclosed in the first place?  Did it have defects or hidden flaws that weren’t discovered until after purchase?  Also bear in mind that if a current owner is headed toward foreclosure, chances are that repairs or maintenance on the property stopped some time before; it stands to reason that a owner who can’t make payments, can’t afford maintenance either.

With every foreclosure unfortunately someone has become a victim of hardship and has had to pay the price of losing their home, rental or investment. Many vacate the property with no problems but there is an increasing number who are angry with the situation they have found themselves in and turn to the property to get some sort of revenge or satisfaction resulting in damage. It has been in my experience when inspecting numerous foreclosed properties to expect the unexpected. The damaged recorded has been from minor damage to the walls to major structural damage to the roof truss system. It is extremely important when considering purchasing a foreclosed property that a full home inspection is carried out to the highest degree. The foreclosed property will be offered for sale in an “As Is” condition, this means what you see is what you get including all the hidden defects and damage. If you purchase a foreclosed property without a home inspection you will assume all the risk and liability when closing the deal.

Foreclosure properties can be sold in a variety of ways and not limited to:

• Court steps
• Newspaper small adds
• Real estate companies
• Public and private auctions
• Private sale by owner

Very often at the time of you viewing and possibly at the time of you closing on the property, the essential utilities may have been switched off because of none payment of the previous bills. This effectively means you cannot check to see if the most important features (water, electricity, A/C, plumbing, heating, appliances, pool, spa, security system, and garage door openers) work correctly. It is imperative that before you part with any money (unless you want to take the gamble) that you arrange with the appropriate authorities to have the services switched on for a minimal period for testing. When you have this arranged this is your last chance to inspect your property and determine if the services are working or if it has been a victim of malicious damage.

Question: So what can you expect to find?

Answer. Anything and everything.

You need to remember that while the owner still occupies the property they can cause as much damage as they like and not be held responsible as it still remains their property until they are evicted. Most of the damage is incurred just before they vacate and is in most cases is very visible with drywall holes from punching or kicking to the more serious damage which cannot be seen by an untrained eye.

My experience has uncovered the following:

• Irrigation pipes cut underground
• Pipes with holes drilled in hidden areas
• A/C heating coils punctured or missing completely
• Electrical wiring cut
• Cement poured down drain pipes
• Flooding internally
• Major damage to drywall or flooring
• Removal of all appliances and pipes
• Cutting roof truss system

Our comprehensive inspection is designed to inspect as much of the property as possible, providing you with a detailed evaluation and report of the property allowing you to make a calculated financial decision of how much you are prepared to pay, taking into account any damage discovered. The standards and optional services, along with the cost breakdown according to the size of the property and can be reviewed at: www.goldenstatehomeinspections.com

Serving: Alameda county, Amador county, Butte county, Contra Costa county, El Dorado county, Glenn county, Marin county, Napa county, Placer county, Sacramento county, San Joaquin county, Santa Clara county, San Mateo county, Solano county, Stanislaus county, Shasta county, Sutter county, Tehama county, Yolo county, Yuba county.

Partial list of cities served: Sacramento, Roseville, Folsom, Granite Bay, Elk Grove, Ranch Cordova, South Lake Tahoe, Davis, Woodland, Stockton, Lodi, Galt, Yuba City, Marysville, Vallejo, Vacaville, Fairfield, Concord, Walnut Creek, Napa, Oakland, Berkeley, Fremont, San Jose, Santa Clara, Modesto, Tracy, Pleasanton, Santa Rosa, San Rafael, San Francisco, Chico, Oroville, Red Bluff, Redding, Orland, Corning, Paradise.

Golden State Home Inspections LLC • P.O. Box 658 Folsom, CA. 95763
Member of NACHI-National Association of Certified Home Inspectors
Ca. State Contractor License #913615
Phone: 800.441.0804 • Fax: 530.676.3098

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