I've sent the following to Representative Jinkins. I'd love to hear feedback or if anyone has any additional comments/information that I could follow up with her on:
[short intro then]...While educating myself on being a real estate investor and a landlord, I stumbled across the website biggerpockets.com. I keep an eye out on the forums and every once-in-awhile, something catches my eye. I wanted to share the following story with you as I thought it might be of interest:
A gentleman purchased his first real estate investment through an auction website. Most homes on these sites are sold without the buyer being able to see the backyard or the inside of the property. Once he closed and was able to access the property, he discovered a number of squatters. Once he was able to get them evicted, they caused major (structural) damage which he couldn’t afford to fix and so he let the house go back to the bank. The house was put back up for auction in the middle of December and there were no notices on the sellers site regarding the structural damage to the home.(see entire story and subsequent follow-up here: https://www.biggerpockets.com/forums/56/topics/250301-squatter-nightmare?page=1#p1723341)
Here’s the issue. Squatting aside, the bank is reselling/has resold a property that is unfit for occupancy. Not that big of a deal if you know what you’re getting, but they did not/do not list any known issues with the property. I’m sure the bank would claim no knowledge even though the original poster likely told them about it (all assumptions on my part but they seem like fairly safe assumptions in this discussion).
What I’d like to see happen. Can we get legislation enacted which would require each home on these auction sites to have an independent inspection completed and the inspection report posted with the auction documents? Maybe it’s not a full inspection – maybe it’s just a structural inspection (foundation, beams, load-bearing walls, roofs, joists).
Why this seems to be a legitimate request. While lack of plumbing or electricity is a health issue, structural integrity is a life and death issue.
I look forward to hearing your thoughts and thank you for your time. It is greatly appreciated.