FORECLOSURE INSPECTIONS
STATE OF MINNESOTA DOES NOT REQUIRE FINANCIAL INSTITUTIONS TO PROVIDE A DISCLOSURE
Although there may be opportunity for substantial financial gain, these properties can have their own unique set of problems. Some foreclosure properties often have unique and extra problems due to the effects of the winterization process homes have gone through. Properties that have had the heat and water turned off for the winter or for extended periods of time tend to be the homes of our greatest concern. Many times a foreclosure property has been stripped of many things that a buyer would normally expect to be in the home.
These include but are not limited to;
- Plumbing and copper pipes
- Romex or other electrical wiring (copper)
- Cabinets/counter tops
- Appliances such as stoves, built-in microwaves, dishwashers, space heaters, etc.
- Furnaces, water heaters, and air conditioning units
- Light fixtures, ceiling fans, switches, and receptacles
- Doors (interior and exterior) and hardware (knobs and locks)
- Flooring (carpet), suspended ceilings and walls (paneling and tile)
- Windows and vents
- Medicine cabinets, sinks, tubs, toilets and showers
- Sink drains and faucets
- Built-in shelving / bookcases
- Landscaping, fencing, built-in pools and spas, retaining walls (landscape block), patio stone
- Wood trim (oak or any decorative)
Winterization damage
I have seen many of the foreclosed homes have plumbing problems from the winterizations done by inexperienced and experienced workers and plumbers. Especially the homes that have been unheated over the winter season. When these homes are de-winterized try to get the plumbing company to do an air pressure test on the system first before they turn the water on. That way if there is a broken pipe, there will not be water leaking out all over ruining the walls and floors. BE CAREFUL! I pay extra attention to these homes as the problems are sometimes not as easily uncovered as in a non-forclosed home.
The current real estate market includes many foreclosed, bank-owned homes. If purchased right these properties can be a great investment resource or “fixer-upper” first home regardless.
