Foreclosure inspectors are hired by lending institutions to assess properties that are being repossessed. Experience in the construction industry may be more valuable than formal training in this field. Foreclosure inspectors may need certification or licensure, but requirements vary by jurisdiction.
A foreclosure inspector examines the physical condition of houses, buildings, and other properties under foreclosure by banks and other lending organizations. The condition of a property, including any needed repairs, helps determine its value. Foreclosure inspectors are usually contractors with previous experience in construction or a related field. Many firms also look for job candidates with postsecondary training related to building inspection.
|Required Education||High school diploma; postsecondary training is a plus|
|Other Requirements||Previous experience or training in construction; licensure or certification required by many states|
|Projected Job Growth (2019-2029)||3% (for construction and building inspectors)*|
|Average Salary (2020)||$66,470 (for construction and building inspectors)*|
Source: *U.S. Bureau of Labor Statistics
Foreclosure inspectors are responsible for assessing the value and condition of properties which a bank or lending institution has ceased or is about to take control of. When a homeowner or borrower is unable to make payments on the property, the bank will foreclose on the loan and assign a foreclosure inspector to determine the condition of the property.
As with home inspectors, foreclosure inspectors will report on system and components of the interior and exterior of the building, including electrical, heating, and plumbing. Inspectors examine the structure and foundation for damage and survey any additions, such as porches and decks.
An inspection may last from two hours or longer, depending on the size and condition of the home, according to the American Society of Home Inspectors. The National Association of Home Inspectors (NAHI) provides a standard of practice which outlines the responsibilities and limitations of home inspection.
The foreclosure inspector's report will help determine the value of the property. Because foreclosed properties are susceptible to vandalism, foreclosure inspectors may have to assess any physical damage beyond that of a standard home inspector. They will also need to determine if a tenant still occupies the property.
Certification and Licensure
Many foreclosure inspectors will be employed as independent contractors who determine for themselves the amount of certification and licensure they need to be hireable. Most states and cities have laws which require home inspectors to carry a certain level of licensure to practice in a given jurisdiction. Typically, this includes a combination of education, experience, and examination. Renewing or maintaining a license usually requires proof of continuing education in the field.
A number of industry associations offer certification that is the required standard in some states and cities. The Examination Board of Professional Home Inspectors (EBPHI) has information on state requirements and offers an independent exam. The American Society of Home Inspectors offers training and continuing education opportunities as does the International Code Council (ICC), which also has certification offerings. NAHI offers the Certified Real Estate Inspector (CRI) program.
Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the average annual wage of construction and building inspectors in May of 2020 was $66,470. The BLS has predicted that inspector employment growth should be consistent with about as fast as the average rate predicted for all occupations from 2019 to 2029, with a 3% increase expected.
Foreclosure inspectors help to determine the value of a foreclosed home, usually for a bank. This job requires knowledge of a wide range of details relating to homes and the ability to inspect the structure and systems. Education and licensure requirements differ by state.