Bank Right To Inspect Property

[nioka]

In one of the many documents I received from Chase there was a statement about inspecting my property.

I watched one video where the residents had to allow an inspection by the mortgage holder. I am not sure if this inspection took place prior to the foreclosure sale or afterwards.

While the house remains in my name does the bank have the right to inspect the house? What I mean is does the bank have the right to force an inspection of the interior of my house? My house is in default but not yet foreclosed.

[frogger]

They probably do, just as your insurance company does. Check your loan documents to be sure.

[Pjmax]

I do believe, as long as the property is in your name, you have the right to refuse an inspection, unless it is by court order. Can't say what the consequences of refusal are though. An insurance co. may just cancel the policy, not sure what a mortgage co. will do. Half the time, these property inspections are exterior only, you may not even be aware that an inspection has been done. For an interior, it is usually by appointment. This is just based on my experience of course.

[justbroke]

The bank has the right to an "exterior" inspection of the property. They can take pictures, but they may not breach the peace in doing so. (In other words, they can't scale walls, break locks, force entry, or otherwise "trespass".) You do not and should not let them inside your home as it serves absolutely no purpose. The person usually just checks to see if the property is occupied (are their curtains in the windows? does it looked lived in? is the grass being mowed? etc). These inspectors take a few pictures to demonstrate the exterior condition and either they or another person will issue a broker price onion (BPO) if it is requested by the creditor.

(I should make a disclaimer in States where "lien theory" does not apply. Florida is a lien theory State so the property is owned by the homeowner and not the bank (and not a third party Trustee). In States where homes are owned under a Deed of Trust, that has assigned ownership to the third party Trustee, I can't say what rights there are in that Deed of Trust. The purpose of property inspection is to preserve the collateral. It is mostly to find if the property is truly abandoned and then to take reasonable steps to "secure" and "preserve" the value of the collateral.)

[LadyInTheRed]

(I should make a disclaimer in States where "lien theory" does not apply. Florida is a lien theory State so the property is owned by the homeowner and not the bank (and not a third party Trustee). In States where homes are owned under a Deed of Trust, that has assigned ownership to the third party Trustee, I can't say what rights there are in that Deed of Trust. The purpose of property inspection is to preserve the collateral. It is mostly to find if the property is truly abandoned and then to take reasonable steps to "secure" and "preserve" the value of the collateral.)

In a title theory state where the bank holds a Deed of Trust, the borrower retains all rights (subject only to the lien evidenced by the deed of trust) and responsiblities of ownership , including the right to control access to the property. My understanding is that the only practical difference between a lien theory state and a title theory state is that in a title theory state, a trustee is appointed under the deed of trust who can initiate foreclosure upon default without a court order. In a lien theory state, judicial foreclosure is required.

[justbroke]

Thank you LITR. Not that it matters, banks have still forced their way into homes even when they were clearly occupied, under the guise of securing and preserving the property. Unfortunately, I do not believe it is per se the anks themselves, but the companies that they hire. Those companies make money when they "actually" break-in, clean the place out, and change locks.

There's a story about a similar situation in Ohio where a women was away, and they broke in, changed the locks, cleaned the place out and she returned to an empty, locked home. To the bank's surprise, they had the wrong house.

So my disclaimer is that there are rules and laws that should be followed, but there are always "mistakes" made.

I'm not one to post things from HuffPo, but here's one... http://www.huffingtonpost.com/2012/0...n_1682672.html

Ohio issue... http://gawker.com/bank-repossesses-w...-stu-893629920

[Blossoms]

Thank you LITR. Not that it matters, banks have still forced their way into homes even when they were clearly occupied, under the guise of securing and preserving the property. Unfortunately, I do not believe it is per se the anks themselves, but the companies that they hire. Those companies make money when they "actually" break-in, clean the place out, and change locks.

There's a story about a similar situation in Ohio where a women was away, and they broke in, changed the locks, cleaned the place out and she returned to an empty, locked home. To the bank's surprise, they had the wrong house.

So my disclaimer is that there are rules and laws that should be followed, but there are always "mistakes" made.

I'm not one to post things from HuffPo, but here's one... http://www.huffingtonpost.com/2012/0...n_1682672.html

Ohio issue... http://gawker.com/bank-repossesses-w...-stu-893629920

I remember hearing about that one in Ohio. I just read that article you posted, too. Wow!! That is frightening and horrible!! Inexcusable, too!

My elderly mother's house here in Cleveland is in foreclosure, and here I've been worried about some neighborhood thugs breaking into her home, as she lives in a neighborhood with a high crime rate. Now I have to worry about the bank's hired thugs breaking into her house too?!

These banks or Fannie/Freddie shouldn't be allowed to send anyone into a house to inspect it, without a court order, prior notification of the residents, and a police escort.

Yeah, these homeowners can sue the companies responsible, but some stuff can't be replaced. Family heirlooms, photos, someone even had their cat stolen! Not to mention peace of mind, and being able to feel safe in your own home. No amount of money will bring that back.