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I N D U S T R Y I N S I G H T / M A T T J O N E S
Inspections are a complex and solid backbone to the
property preservation process. e many intricacies
and unknown factors can often make the process
challenging. Lenders face obstacles daily to keep
properties up to code, and inspections are the first step toward
achieving that goal.
One of the most understated factors in
inspections is how small of a view the vendors
have when considering a home. ey are
simply taking a snapshot of a moment in
time, with no knowledge of the life of the
loan before that point. When considering an
occupancy inspection, one would assume that
it's fairly cut and dried. Just send a vendor
to confirm vacancy or occupancy, right? Not
exactly. e work of an inspector is not for
the faint of heart.
MORE THAN MEETS THE EYE
Vendors often find themselves face-to-face
with danger in an attempt to get a clear idea
of the status of a property. Anything from
squatters to distressed borrowers could stand
on the other side of the door, keeping them
on their toes at all times. Of course, there are
reliable indicators of occupancy: lights on in
the home, animals barking inside, toys in the
yard, seasonally appropriate decorations on
the home, and the most trustworthy—visual
observation of individuals in the home. If
only all inspections were always so easy.
Many factors are misleading when
occupancy inspections are performed. Does
the home have a well-maintained lawn? On
first thought, this would be a good indicator
that the home is occupied and cared for.
However, many servicers and vendors are
finding this clue to be less reliable when
considering the prevalence of HOAs and
neighbors invested in keeping their blocks
well maintained. Trash cans are out, so this
must mean that a homeowner resides inside.
Not always—maybe the neighbor did a round
PUTTING INSPECTIONS
UNDER THE MICROSCOPE
