LESSON 5: INSPECTION AUTHORITY Flashcards
Where do we get the authority to do what we do?
In accordance with the Code of Federal Regulations,
§ 203.377 Inspection and preservation of properties.
The mortgagee, (the bank or mortgage company) upon learning that a property subject to a mortgage insured under this part is vacant or abandoned, shall be responsible for the inspection of such property at least monthly, if the loan thereon is in default. When a mortgage is in default and a payment thereon is not received within 45 days of the due date, and efforts to reach the mortgagor by telephone within that period have been unsuccessful, the mortgagee shall be responsible for a visual inspection of the security property to determine whether the property is vacant. The mortgagee shall take reasonable action to protect and preserve such security property when it is determined or should have been determined to be vacant or abandoned until its conveyance to the Secretary, if such action does not constitute an illegal trespass. ‘‘Reasonable action’’ includes the commencement of foreclosure within the time required by § 203.355(b) of this part.
How to take pictures
The best practice is to take the photo of the street sign first, before pulling up to the property. While you have your inspection open on your phone, and ready for the next photo, arrive at the property so that the house is on your left side. Have your window already rolled down. As you pull up across the street, start snapping those photos before anyone comes out. Get the front, or in some cases, the front left, front, front right. (Depending on the client instructions.) Then zoom in on the address. Hit your occupancy photos, cat in the window, toys in the yard, swing on the porch etc. Just keep that darn side mirror out of the photo.
*It is the duty and responsibility of the the Independent Contractor Property Inspector to become familiar with state and local laws pertaining to trespassing laws. The information below is opinion based.
Properties with “No Trespassing” signs can and often are treated in the same way as “no contact” inspections. Inspectors are asked to take detailed photos of the signage, but to always keep their personal safety in mind. With the exception of bankruptcy cases, if we choose not to cross a “No Trespassing” sign, then we need to reach out to the neighbors to verify occupancy. Just because there is a No Trespassing sign does not mean that you cannot provide accurate results to your clients.
Trespassing
The best practice to keep in mind when ever you encounter a No Trespassing sign is to ask yourself, are you trespassing? If you are representing the bank or the investors interest and are there to conduct official business, then who would ever think that you are trespassing? Does it really make sense to believe that a person can buy a home, have a mortgage on the property, become delinquent in their house payments, slap up a No Trespassing sign so that they can stay there forever without paying or being asked about the payments? If you have no business at the property then you are probably trespassing. If you are there at the property for official business, then you are not trespassing. If you were delivering pizza to a property and you saw a No Trespassing sign, would you not deliver the pizza or would you think that you were there conducting business?
In Louisiana, Title 14, RS 14:63 – Criminal Trespass Section F Shows person is not trespassing when:
(3) Any person making a delivery, soliciting, selling any product or service, conducting a survey or poll, a real estate licensee or other person who has a legitimate reason for making a delivery, conducting business or communicating with the owner, lessee, custodian or a resident of the immovable property, and who, immediately upon entry, seeks to make the delivery, to conduct business or to conduct the communication.
In Louisiana, Title 14, RS 14:63 – Criminal Trespass Section F Shows person is not trespassing when:
Nearly every state has laws that include “criminal” trespass. The keyword here is “criminal“. As a representative of the mortgage company you have the legal right to conduct business on behalf of your clients. However, exercising your right to inspect a property is not worth getting shot or assaulted over. We never assert our position of authority upon the homeowner. Use your own discretion when considering “No Trespassing” signs. Most clients will accept your decision not to go beyond a No Trespassing sign if you take photos of the sign. This is not a valid excuse for vacant properties.
Mortgage Field Service Property Inspections are authorized and required by:
The Code of Federal Regulations
The Honor Code System
The United Federation of Planets
The Secretary of Defense
The Code of Federal Regulations
Only criminals really need to worry about No Trespassing signs.
True
False
True
If your inspection requires you to leave a letter for the occupant and you don’t want to cross a No Trespassing sign, it’s okay to stick the envelope on the sign itself.
True
False
False
An inspector who is not comfortable passing a No Trespassing sign can take a photo of the sign but still has to…
Ask the neighbors if the property is occupied if a visual inspection does not provide the information needed to determine if the property is occupied or not.
Go past the No Trespassing sign no matter how you feel.
Take down the No Trespassing sign, put it face down on the ground and continue with the inspection.
Ask the neighbors if the property is occupied if a visual inspection does not provide the information needed to determine if the property is occupied or not.
It is the duty and responsibility of the the Independent Contractor Property Inspector to become familiar with state and local laws pertaining to trespassing laws.
True
False
True
