Is it possible to have a home inspection done on a foreclosed home?

Question : Is it possible to have a home inspection done on a Foreclosured home?
I’m interested in purchasing a foreclosed home. My realtor is trying to get me to buy it without having a home inspection done.  I’m afraid of buying it without a home inspection because of all the potential problems that could come up later.  Will the bank that owns the home agree to turn the utilities on so that we can have an inspector run tests on them? I don’t want to purchase a home without knowing what I’m getting into.

Best answer:

Many of the REO (Real Estate Owned) companies that I deal with regulary allow home inspections for information purposes. The reason that foreclosed homes are sold AS -IS is because the REO companies that are handling them do not know the property’s history. Regardless of having a home inspection or not the utilities will need to be turned by someone depending on the type of loan your getting.   Again most of the REO companies I deal with have “US” as the listing broker turn on the utilities on in our name. Some REO companies have property preservation companies that turn on the utilities on in their name. FHA/HUD foreclosures have the buyer take responsibility for all the utilities that are neccessary to have the inspected, appraised and or tested. Anything is possible when it comes to utilities. Just ask the question and findout.

Home inspections are always a good idea and can save you from purchasing a home with hidden defects that you may not be able to afford. When writing your contract offer make it contingent upon a satifactory home inpection.

Know better? Leave your own answer in the comments!

About Kristofer Nance

Kristofer Nance, Real Estate Broker with Nance & Associates, Realtors in Fredericksburg VA
Owner/Agent of Nance & Associates, Insurance.


  1. Do not buy a home without an inspection. You should insist on seeing what is working or not working. Most foreclose homes are sold as is. But as is means you pay lots of money to fix it. I repeat do not buy a house without a home inspection from someone you trust. Many home inspectors get thier business from real estate agents and are in their pocket so to speak. Also get rid of that agent that wants you to buy without an inspection.

  2. Bottom line-
    Yes- you can have a home inspection for “information purposes only” prior to closing for your own benefit.
    No- you can’t get out of the contract on a home inspection because the property is being sold “as-is”.

  3. the bank goes with the “strongest offer”
    which means……best price, and least complications..

    you can ask for another viewing and bring an inspector then..

    this is basically an auction and the bank will take the best and least complicated offer..

    good luck.

  4. They will turn it on, they have to before closing. Your bank is likely to require it before they will give you the loan.

    But, the REO’s are “as is”. You will have a hell of a time getting out of the sale. Something very major will have to be wrong, major enough that your lender will stand behind you and refuse to close the deal.

    If you are squeamish simply ask your real estate agent not to show you REO’s. Tell her you want a normal place, with disclosures and inspections done.

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