Why Does an REO Property Need an Inspection?
One of the reasons that an REO property can be less expensive to purchase than other similar properties in the same area is that REO properties tend to be in need of repair. REO property was taken from its former owner because they defaulted on debt payments. The former owner therefore was likely in financial trouble and unable to pay for repairs and maintenance.
Additionally, REO property often is held for a long period of time by the lender that foreclosed on the property; it typically remains vacant during that time.
An inspection is necessary to check for damage, structural problems, and any repair or maintenance needs that may have resulted from inattention and neglect of the property.