Bridging the divide on REO inspections

Why are banks so afraid of disclosure?
Published on Oct 20, 2009

DEAR BARRY: My friend is trying to buy a house and is concentrating on foreclosed properties. He usually makes an offer and then hires a home inspector. If the inspector finds many problems, my friend doesn't buy the house. So far, he's done this twice. What seems unfair is that the next buyer who comes along has to pay for a home inspection when one has already been done. This seems like a rip-off. If an existing inspection report were available to download, a buyer could simply ask the seller if any repairs have been done since the last dated inspection. How many times must a home be inspected in such a short period of time? --Roy DEAR ROY: What you say makes sense, but there are two roadblocks that prevent public dissemination of home inspection reports on foreclosed properties. The first is home inspector liability. The second is the unwillingness of banks to provide disclosure on properties that they own. Let's take these in order. When you hire a home inspector, you ...