Bank Property Inspections Explained for Lenders and Servicers

Banks, servicers and REO managers regularly need to know the condition and status of a property they have an interest in. A property inspection gives them documented, time-stamped evidence without visiting in person. Here is what they typically involve.

Where do banks source property inspections?

Banks, loan servicers and REO managers usually do not send their own staff. They source property inspections from specialist inspection and property-preservation companies, and from networks of field inspectors who work in each area. Some assign work through a national vendor; others use regional providers for the areas they cover.

When choosing a provider, lenders typically look for background-checked field inspectors, a standard report format, time-stamped and geotagged photos, clear turnaround times, and insurance. Vetted Teams supplies bank and lender property inspections with those checks. See bank & lender property inspection.

Common types of property checks

Occupancy checks. Is the property occupied or vacant?
Condition reports. Visible condition of the exterior and, where permitted, the interior.
Preservation checks. Signs of damage, break-ins or hazards.
Re-inspections. Follow-up visits after repairs or after a change in status.

What a good report includes

Time-stamped, geotagged photos of the front, sides and rear.
A clear note of occupancy indicators, such as vehicles, mail, utilities or signs of use.
Visible damage, hazards or code issues.
A standard format that can be filed without being rewritten.

What lenders should ask an inspection provider

Are field inspectors background-checked, and do they sign a confidentiality agreement?
How are photos captured and verified (time stamps, GPS)?
What is the turnaround, and how are rush requests handled?
What format is the report delivered in?

Protecting privacy

Addresses and borrower information are sensitive. Vetted Teams has field inspectors sign a confidentiality agreement before they receive any address.

See bank & lender property inspection.

Need this done?

Tell us what you need, where and by when on our contact page, or email [email protected]. We confirm the provider, the scope and the price before anything starts. See how we vet providers and our full list of services.