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What You Need to Know Before Becoming a Foreclosed Property Inspector

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Peeples is a mortgage inspector and small business owner with over ten years of experience in real estate and housing.

Basic front inspection picture. Be sure to include the entire front, from one end to the other.

Basic front inspection picture. Be sure to include the entire front, from one end to the other.

What Is an REO or Foreclosed Home Inspector?

An REO inspector is the person responsible for inspections on Real Estate Owned property or bank-owned property. The majority of these properties are foreclosed homes.

Other Possible Job Titles

This job goes by many names. I will give you the most common names so that if you are looking for work opportunities you don't miss out:

  • Foreclosed Property Inspector
  • Mortgage Inspector
  • Field Inspector
  • Information Carrier
  • REO Inspector

Pre-Foreclosure and Interior Inspections

There are usually two types of inspections: pre-foreclosure inspections and interior inspections.

About half of inspections are pre-foreclosure inspections, intended to determine occupancy. Usually, mortgage companies have a customer who has been late on payments, hasn't returned phone calls, and hasn't answered letters. So the inspector's job is to go out to the property and determine if someone is still living on the property. If the property is occupied, then a letter must be left on their front door, pictures must be taken of any and all damages to the home, the front of the home, a street view, and proof that you were were in the right place. Most occupied inspections require you to take less than 6 photos, but some companies require as many as 10. If the property is found to be vacant, you then take pictures of all sides of the home. You also determine if the power and water are still on. This can be done by simply checking the home with a volt pen and locating the water meter. On all inspections, you must determine if there are any damages to the property.

The second common type of inspection is an interior inspection. These homes have already been foreclosed on. It is the inspector's job to be the eyes of the mortgage company. The common things asked are: Is the property in a high vandalism area? Does the home have any damages? Is there debris on the property? What is the value of the property?

With interior inspections, you are also required to take about 40 pictures of the home. Each inspection usually takes ten minutes to complete if everything goes right.

Typical debris at a foreclosed home

Typical debris at a foreclosed home

What Tools Do I Need?

  • Camera. Some companies are requiring cameras that have GPS built in now.
  • Computer with internet access, ideally a laptop with at least 500 GB of storage
  • Printer
  • Scanner
  • Smartphone
Important interior health hazard

Important interior health hazard

The Positives and Negatives of Being a Foreclosed Home Inspector

I started doing inspections in 2007. I have worked for many companies and now am fortunate enough to own my own small business.

There are several great things about this job. If you like riding around in the car, this is the perfect job for you!

The pay is more about getting lots of volume. The pay for each inspection is minimal, but when you are doing hundreds of them a month, it adds up fast.

You also get to learn a lot about the housing market.

My favorite part is the flexibility. While there are the occasional 24-hour rush inspections, most have 4 to 5 days to complete. So long as you don't accept too large of an area then you have a lot of flexibility as to when you work. Because of the nature of this job you will never have to work nights. All inspections must be done during daylight hours.

The downsides to this job are plentiful as well. To put it bluntly, people are NASTY! I've seen EVERYTHING and more! You will walk into some homes that are knee-deep in trash. Others have mold everywhere! Some have diapers and used tampons on the floor. There is no line people stop at when it comes to losing their home!!!

Another downside is the occasional squatter in a house. The homeless will often use foreclosed homes as a place to sleep. They are usually not much of a threat, but nothing can scare you more than being almost done with an interior inspection and suddenly hearing a cough coming from the closet.

The last downside to me is that sometimes you come up on people who think it's your fault they will be losing their home. They've lost their jobs, their spouse, and their dog, and soon they will lose their house, and finally, someone arrives who they can take it out on. I have only had two guns pulled on me and both times things ended well. However, I have had plenty of people cuss me out.

I would suggest this career to anyone who loves a job that isn't the typical office 9 to 5. Someone who is tough and can handle the stress and people that come with the work, and someone who can pay attention to detail would do just fine in this line of work!

Companies That Hire Foreclosed Property Inspectors

Here is the somewhat tricky part. The requirements depend on if you are looking to work for a contractor locally or a national contractor.

  • Do you have $1 million worth of insurance?
  • Do you have workers' compensation insurance?
  • Do you want to work directly with the big companies or through middlemen?

If you work for a national contractor such as Five Brothers, SafeGuard, or A2Z, you will be required to have insurance to get any work.

Foreclosed Mortgage Inspection Companies:

  • Five Brothers
  • SafeGuard
  • A2Z
  • Field Asset Services, Inc
  • Mortgage Contracting Services
  • Cyprexx Services
  • National Real Estate Field Services, Inc.

If you want to find a local contractor, most advertise on craigslist for job openings. Most of the time it is listed under general labor jobs.

Feel free to check out the nationals, but remember working for a local contractor means you don't have to deal with the drama from the big companies (and I promise there is A LOT of drama from them). The middlemen take a cut, but they also reduce so much of your work that it may be worth it. Middleman companies likely will give you more options about the area you want to cover also.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.


Mary Hyatt from Florida on April 16, 2015:

This does not sound to be a job for me. I've been a landlady, and I've seen what people can do when they are angry about having to be evicted for not paying their rent. I know of a couple who poured concrete down their plumbing when they were being foreclosed!

Very interesting article.

Beth Eaglescliffe on October 29, 2013:

I enjoyed reading about your line of work. This is an interesting article.

HeatherH104 from USA on May 19, 2013:

I'm in Pennsylvania. Thanks for the advice and great suggestion, I really appreciate it! :)

Peeples (author) from South Carolina on May 19, 2013:

Since I see you are in the USA your best bet might be going to Craigslist and searching "mortgage Inspector" "property inspector" or things like "camera" since one of the requirements is having a camera. You can also go to and sign up to be a vendor. If you are just inspecting you are not required to have business insurance through them and they typically pay $10 to $15 per inspection. If you are in the Southeast let me know and I may be able to connect you to some of my connections.

HeatherH104 from USA on May 19, 2013:

This is a great hub, I would definitely like to know more!

Glenn Stok from Long Island, NY on May 11, 2013:

This was a very complete and honest description of being a foreclosed property inspector. I can see it's not for everyone, since there is a certain amount of risk involved. I give you a lot of credit for doing it. And also for writing a very informative hub. Voted up.

Shasta Matova from USA on March 18, 2013:

Congratulations on Hub of the Day. As I was reading your hub, I thought, I would love to do this, since I love taking photographs and being nosy, but then I'm not so sure I want to deal with people who are losing their homes and squatters. Thanks for a great lesson on what it is like to be a foreclosed property inspector.

Peeples (author) from South Carolina on March 18, 2013:

If you live in high populated areas it is hard because there are so many other inspectors. For me I have found the rural areas are pretty easy to get because there is not as much competition. Thanks or the comments!

jellygator from USA on March 18, 2013:

I've done a few of the occupancy inspections when I've listed REO properties. Breaking into the REO field strikes me as tricky, though, and getting more difficult all the time. Do you think so, too?

carozy on March 18, 2013:

What an interesting job. Congratulations on getting Hub of the Day. :) Nice article.

Peeples (author) from South Carolina on March 18, 2013:

Thanks! You are correct Joseph, most properties in my area already have the condensing units gone before we ever start inspecting it. The thieves are quicker than the banks.

Joseph Grant on March 18, 2013:

Another problem I found was copper theft in foreclosed and abandoned homes. Make sure and check all condensing units are still in place. I wrote an article on a/c condensing unit theft if you guys want to check it out:

SonQuioey10 on March 18, 2013:

Great hub, very informative and simple. Congrats HOTD winner.

Comfort Babatola from Bonaire, GA, USA on March 18, 2013:

It's good to see things from a Foreclosure Agent's point of view. You've had a lot to deal with. Voted up and useful. Congrats on winning the HOTD.

Peeples (author) from South Carolina on March 18, 2013:

Thanks Everyone! I love what I do. srsddn, you are right. Success does have a lot to do with the area, and sadly other people's misfortune. Thanks again everyone for the comments.

tuteramanda from beijing china on March 18, 2013:

I think it is really dangerous when you face anger person

Sukhdev Shukla from Dehra Dun, India on March 18, 2013:

Quite interesting! At times it may be dangerous. Success may also depend upon the area apart from one's skills. Thanks for introducing such a nice topic. Congrats for 'Hub of the day' achievement.

Artem from United States on March 18, 2013:

Now everyone are wanted to be property inspector.

CZCZCZ from Oregon on March 18, 2013:

I enjoyed reading through this hub about becoming a foreclosed property inspector. Lots of valuable information, thanks for putting it together and sharing.

Kristin Trapp from Illinois on March 13, 2013:

Your insider's view of being a foreclosed property inspector is very useful to anyone thinking of doing the same thing. What an interesting career; the flexibility it gives you, plus the fact that you never have to work nights are both real positive aspects. But I never knew being a foreclosed property inspector could be dangerous and stressful.

Sarah Chewings from Nottingham, England on March 13, 2013:

Really interesting topic, good to see what you do! Informative and interesting hub. Well done!