Inspections

GENERAL REQUIREMENTS FOR PROPERTY AND PRESERVATION OF PROPERTIES SECURED BY FHA INSURED MORTGAGES 

 


Specific Preservation Requirements

Inspections:

For specific details about HUD Inspection Requirements see 24 CFR § 203.377 and HUD Handbook 4330.1, Rev- 5, Chapter 9-9, as it provides complete details on inspection requirements and types of inspections.

There are three types of inspections:

  • Occupancy Inspections;
  • Initial Vacant Property Inspections; and
  • Vacant Property Inspections.

Inspection reports and photographs shall be submitted in P260 in support of the 27011 parts B – D claim request.

Occupancy Inspection (Inspection at Initial Default)

When a mortgage is in default because a payment was not received within 45 calendar days of the due date of the missed payment, and efforts to reach the mortgagor by telephone or correspondence have proven unsuccessful, the mortgagee must make an inspection to determine if the property is vacant or abandoned.

Initial Vacant Property Inspection

An Initial Vacant Property Inspection is performed on the date the mortgagee takes physical possession of a vacant or abandoned property. The initial inspection is when the mortgagee ascertains the condition of the property, and may be of critical importance in distinguishing between mortgagor and mortgagee neglect following conveyance. If the occupancy inspection and initial vacant property inspection are performed on the same date, only one inspection fee will be reimbursed.

Vacant Property Inspections (On-Going Delinquency Inspection)

Vacant Property Inspections are performed after the initial inspection and physical possession by the mortgagee have occurred. The mortgagee shall inspect a vacant or abandoned property every 25-35 days following an initial inspection, or more frequently, as authorized by HUD.

Generally, not more than 13 inspections per calendar year may be claimed. Where there is a property in an area requiring more frequent inspections due to high vandalism or local ordinances, police reports and/or a letter from a local law enforcement agency requesting additional protective measures may be submitted to support the additional inspection(s).