Lending institutions often find they need boots on the ground and eyes in the field in order to verify a property’s occupancy. Indeed, when underwriting a loan or foreclosing a property, lenders must find locally available, third-party Inspectors to perform Occupancy Verification Inspections on their behalf.
But why are occupancy verification services necessary? Who needs them? What do they accomplish? And why is TrendSource OnSite Inspections a premier provider of Occupancy Verification Inspections?
Let’s find out.
An Interest in Interest Rates
Federal regulations dictate the interest rate mortgage companies can charge for a home loan. These interest rates vary based on whether the property is the borrower’s primary residence, secondary residence, or will be rented out. Borrowers pay lower interest rates on primary residences and higher rates on properties they intend to rent out.
For this reason, lending institutions oftentimes seek out Occupancy Verification Inspection Services—it allows them to confirm their borrower is residing at the property and thus paying appropriate interest rates. On the other hand, if the Inspection reveals the property has been rented without the lender’s knowledge, banks can take corrective action.
Similarly, lending institutions may require an Occupancy Verification Inspection while performing due diligence on properties put up as collateral for a loan or refinance.
Occupancy Verification Services for Foreclosures
Lending institutions also find they require Occupancy Verification Inspections when they are foreclosing a property. Essentially, banks need to ensure that occupants have vacated the property under foreclosure and are not squatting.
Similarly, if a tenant misses a mortgage payment, banks may schedule an Occupancy verification inspection to see if the tenant has abandoned the property.
Door Knocker Occupancy Verifications
TrendSource OnSite Inspections offers two types of Occupancy Verification Services.
Door Knocker Occupancy Verifications are the most common form of Occupancy Verification.
The Inspector arrives unannounced at the residence to verify the owner currently resides at the address, asking for photo identification. This type of Occupancy Inspection is favored by lending institutions looking to ensure the borrower does in fact reside at the property listed on a lending document.
Though unannounced, the visits do not come out of nowhere, and the borrower is notified in advance that an unannounced Inspection is forthcoming. Banks often rely on this type of Inspection after unsuccessfully attempting to contact the borrower directly.
Scheduled Occupancy Verification Inspections
In Scheduled Occupancy Inspections, however, an Inspector schedules an appointment to meet the owner at their property at an agreed upon time. Scheduled Inspections are more exhaustive than Door Knocker Occupancy Verifications and include assessments of the property’s condition and needed repairs as well as confirming the occupancy.
Scheduled Occupancy Inspections are more common in foreclosures, when a lending institution wants to both verify occupancy as well as assess the property’s condition in anticipation of a foreclosure.
TrendSource OnSite Inspections Occupancy Verification Services
TrendSource OnSite Inspections is a premier provider of Occupancy Verification Services. Relying on its vast network of certified Inspectors, TrendSource Onsite Inspections offers Occupancy Verifications across the United States, Puerto Rico, Guam, and the US Virgin Islands.
Our Inspectors and dedicated QA Team ensure that lending institutions get the information they need, when they need it.
As the economy continues to recover and the Biden administration assumes control, the need for Occupancy Verification Services is only expected to increase. TrendSource OnSite Inspections should be lending institution’s first choice, where they can find nationwide coverage and the industry experience necessary to responsibly execute Occupancy Verifications.