Has anyone heard of Banks not allowing the buyer to choose their own inspector? I have a friend in Fresno & Merced that were told by the banks i could not inspect the homes. I had to be on the banks list to inspect & its a pool not a request.
Never heard of such a thing, are you sure they’re not home appraisals?
FHA loans on flip properties require the bank to order the inspection. The report has to show the bank as the client.
In my area most banks let the client choose the inspector, client pays the inspector but the name of the bank is listed as the client.
Thats what I said but they verified that as well. Ill call the banks to find this out. I did ask a local real estate company the same question and they too say what you all have been saying.
I haven’t encountered that in the Los Angeles area at all.
Certain lenders require a home to be inspected if it’s owned by the seller less than 90 days. I do them here for a couple lenders.
Somewhat agree with this but most of the time it is the underwriter request. Wells Fargo & BofA are the ones that do this now and most of the time will require an inspection due to the appraisal that noted something.
That’s what I encounter here too. Also, Wells Fargo requires a “feasibility inspection” on all of their non-FHA renovation loans, even if it’s just for a Kitchen renovation. I do 2 or 3 feasibility inspections per week and then the subsequent draw inspections on them.
I understand that FHA and VA loans will require an inspection on homes that re-sell within 90 days, I’ve just never heard of the lender sending out an inspector from their “pool” of inspectors.
I perform these for clients several times each week.
To answer your question Bryce… I would say I’ve had just a small bit of experience where some requirements were put in place… but never denied.
Bank of America (there may be others) has informed buyer’s of a requirement to obtain from me, and forward my insurance and credentials, maybe 3-4 times in last year.
Oddly enough, I think almost 100% of the time that these “special requests” have come up, the buyer had found me via referral or other in just about every case. Go figure.
And as Paul mentions, I’ve had inspections ordered from financial institutions agreed upon and paid for by lender… a pretty minute % of things, really.
Flip activity comes and goes… I’d think in CA, short sale inspections will be the norm, as our gov’t seems to want folks to stay for free or close to. Loan Mods have a great history of working out, right?
Many of the flips are uber-whacked out, but quite frankly… some REO’s in Southern Cal are such a mess… who else but private money is going to risk their capital to fix them up…? Some just do a lil better job than others.
These inspections are being called for when the home re-sells within 90 days due the quick flip by investors that take short cuts…That is the info I got from a couple underwriters.
This has actually been a blessing for a few clients as they were about to purchase a quick/flipped home that had major issues the were covered up.