Types of Field Service Inspections

By Bill Erickson

FORECLOSURE INSPECTIONS

These types of inspections are required by banks and mortgage companies to insure that foreclosed

properties have not been abandoned or vandalized. As an example: the home is in foreclosure and

the owner is still occupying the property, or occasionally the owner will simply move out and abandon

the property without notification to the mortgage company. This leaves the property open for

vandalism or damage.

DELINQUENCY INSPECTIONS

These homeowners are delinquent in their payments, and the bank wants to know why, as well as

what the owner is doing to remedy their delinquency condition. They also want to make sure that the

home does not fall into disrepair or is abandoned. This is to protect investors in mortgage backed

securities, and avoid a total collapse in the future. These inspections require a face to face interview

with the occupant/owner (including the financial status of the owner) whenever possible. Some

companies require a photo of every delinquent home.

PROPERTY PRESERVATION

These are the type of inspections that are the most numerous, and the simplest.

Vacant Homes. These homes are unoccupied and are owned by the bank. The bank needs to have

someone check them for damage each month. Many homes are in foreclosure. This can also entail

changing the locks and securing the home as well as debris removal.

If Vacant. Check with neighbors, if neighbor say they moved out, get the day they left, no utilities, no

furnishings, lawn overgrown, postman verifies.

Occupant-Vacancy. Home fully furnished, utilities on, lawn well maintained. The electric meter

should always be checked when in doubt.

Unknown. Detail all reasons unknown: curtains drawn, no neighbors available, etc.

BANKRUPTCY

This inspection generally requires only a drive-by while the loan is in bankruptcy proceedings. There

are strict restrictions from making direct contact with the occupants of the property. Only visual

inspections are performed to determine occupancy. No contact with occupants is allowed. Visual

inspections from your vehicle are best when completing this type of inspection.

INSURANCE LOSS OR LOSS DRAFT INSPECTIONS

Loss draft inspections are made when a loss has occurred or there is property damage due to fire,

flood or other hazard.

Example: Owner had a fire in his kitchen. The contractor has begun restoration work and wants the

insurance company to disburse funds for the work that has already been done. Usually you will go to

Types of Field Service Inspections

By Bill Erickson

the site three times when 30-60-100% of the work has been completed. A photo is usually required

showing work in progress, plus you are to make a written list of the work yet to be done. This insures

that the moneys are being used to repair the home.

INSURANCE INSPECTIONS

These are various types of homeowner inspections for insurance purposes. Remember, most

insurance companies have never seen these properties before. Most are for fire and theft insurance

policies. Forms are sent to you and they are either exterior inspections that require photos and

measurements of the exterior of the property or interior/exterior or high value inspections over

$500,000.

HIGH VALUE INSPECTIONS

These inspections are normally for homes valued at $400,000 and up. Depending on the insurance

company these inspections are basically the same as the interior/exterior inspection, but include such

items as imported carpets, high value furniture, collectibles, riding stables, indoor pools, etc.

EXTERIOR INSPECTIONS

These typically require two photos from opposite sides of the house. Square footage is measured by

multiplying the length by the width at each level of the building and adding them up. Sometimes you

will not have access due to fences and dogs, when this occurs simply make a note on the form.

INTERIOR/EXTERIOR

On these inspections an appointment is required and photos taken of each level of the home. Note

fireplaces and heat source. Check fuse boxes for charring.

MERCHANT SITE INSPECTIONS

These are for businesses that apply for merchant bank cards. These are required for businesses

starting up and using credit and merchant credit card services. Bank and credit card companies

require a photo of the premises, signs, and inventory. Many of these are performed in homes, as

many new businesses are, therefore, an appointment is necessary. These usually take about 5

minutes.

SALE DATE INSPECTIONS

These are simple inspections that take place on the day of closing on real estate transactions. Photos

are required. Fees vary.

DISBURSAL INSPECTIONS

These inspections are requested by banks to issue funds on new construction. Funds are disbursed

at different phases on construction.

Types of Field Service Inspections

By Bill Erickson

Example: When the foundation is laid, builder is issued funds, when the framing is completed etc.

These are simple, but usually take three trips to the property. Fees usually $250 on total completion.

COMMERCIAL INSPECTIONS

These are in-depth inspections of commercial sites. They include: factories, warehouses, and retail

stores, complete condo complexes, office buildings, etc. Fees usually range from $40 to $140.

These inspections are performed for general liability, workmen’s compensation, fleet of vehicles, and

business operations. Businesses such as roofing companies or steel erectors have a higher

workmen’s comp and liability hazards rate. The company worksheet will give you instructions of the

area they want investigated.

For commercial inspections more companies want more job site inspections. This means to go to the

site where a subcontractor may be working and take photos of safety equipment such as ladders,

hard hats, etc.

These inspections require building measurements, parking facilities, general lighting, walking

surfaces, fire protection (sprinkler systems, etc.), burglar alarms, location and neighborhood. One

hour is usually required on these inspections. The inspection forms come with fill in the blanks, a

short narrative and a diagram.

PENSION FUND VERIFICATIONS

Verify that the person receiving the benefit checks is still alive. These are usually inter-state, which

means the person had relocated to another state after retiring on a pension.

AUTO INSPECTIONS

These are performed for both physical damage insurance, classic cars and/or motor homes. These

simply require photos of the vehicles and damage reports.

MOBILE HOMES

These are similar to regular insurance inspections, but many are performed on the entire mobile

home park.

HEALTH CLUB SAFETY INSPECTIONS

These are self-explanatory forms used to verify any safety hazards at health clubs. They include

weight machines, pools, walking surfaces, shower and dressing rooms, instructors, etc.