Foreclosure and REO Property Condition Assessment Checklist
REO and foreclosure properties require systematic condition assessment for disposition decisions, rehabilitation budgeting, and HUD/FHA compliance. This checklist documents property condition from acquisition through disposition-ready status.
- Industry: Real Estate & Property Management
- Frequency: Per Acquisition / Quarterly
- Estimated Time: 45-60 minutes
- Role: Property Preservation Manager / REO Specialist
- Total Items: 34
- Compliance: HUD Handbook 4000.1 REO Property Maintenance, FHA Mortgagee Letter Requirements for REO Properties, HUD Housing Quality Standards (HQS), EPA Lead Disclosure Rule (40 CFR 745), State Property Preservation and Vacant Building Requirements
Occupancy and Security Status
Determine occupancy status and secure property.
- Property confirmed vacant (no occupants, squatters, or holdover tenants)?
- All exterior entry points secured (doors, windows, garage)?
- Locks changed or re-keyed to property preservation master key?
- No evidence of recent unauthorized occupation?
- Personal property disposition documented per state abandonment laws?
Hazardous Materials and Environmental
Identify potential hazardous materials in foreclosure property.
- Pre-1978 property lead paint risk assessment required?
- Pre-1980 property asbestos risk assessment indicated?
- Visible mold requiring professional remediation identified?
- Evidence of underground storage tanks or soil contamination?
- Hazardous chemicals or drug lab residue present requiring remediation?
- Evidence of former methamphetamine production (chemical odors, residue, equipment)?
Winterization and Utilities
Verify winterization and utility status.
- Property winterized: water shut off, pipes blown out, antifreeze added?
- Gas and water utilities disconnected or verified off?
- Electrical service status documented (on for security, off for safety)?
- No burst pipes or water damage from freeze?
- Pool properly winterized or secured if present?
Structural and Major System Damage
Document structural and major system damage.
- Roof integrity intact - no active leaks or major missing sections?
- Foundation structurally sound with no major cracks or failure?
- No fire or smoke damage present?
- No flood or major water damage to structure?
- No copper pipe, wire, or HVAC refrigerant theft (common in vacant REO)?
- All included appliances present or absence documented?
Rehabilitation Scope Assessment
Estimate scope and cost of required rehabilitation.
- Cosmetic repairs only needed (paint, carpet, cleaning)?
- HVAC, plumbing, or electrical replacement required?
- Kitchen and/or bathroom renovation required for marketability?
- Code compliance work required for occupancy permit?
- Estimated total rehabilitation cost
- As-is market value estimate
Exterior and Curb Appeal
Document exterior condition and code compliance.
- Grass mowed and landscaping maintained per municipal code?
- All debris, trash, and abandoned items removed from property?
- No outstanding municipal code violation notices?
- Exterior paint or siding condition documented?
- Required HUD or lender signage posted?
- Complete photo documentation including all rooms, exterior, and deficiencies?
Related Real Estate Property Checklists
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- Plumbing System and Water Heater Inspection Checklist
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Why Use This Foreclosure and REO Property Condition Assessment Checklist?
This foreclosure and reo property condition assessment checklist helps real estate & property management teams maintain compliance and operational excellence. Designed for property preservation manager / reo specialist professionals, this checklist covers 34 critical inspection points across 6 sections. Recommended frequency: per acquisition / quarterly.
Ensures compliance with HUD Handbook 4000.1 REO Property Maintenance, FHA Mortgagee Letter Requirements for REO Properties, HUD Housing Quality Standards (HQS), EPA Lead Disclosure Rule (40 CFR 745), State Property Preservation and Vacant Building Requirements. Regulatory-aligned for audit readiness and inspection documentation.
Frequently Asked Questions
What does the Foreclosure and REO Property Condition Assessment Checklist cover?
This checklist covers 34 inspection items across 6 sections: Occupancy and Security Status, Hazardous Materials and Environmental, Winterization and Utilities, Structural and Major System Damage, Rehabilitation Scope Assessment, Exterior and Curb Appeal. It is designed for real estate & property management operations and compliance.
How often should this checklist be completed?
This checklist should be completed per acquisition / quarterly. Each completion takes approximately 45-60 minutes.
Who should use this Foreclosure and REO Property Condition Assessment Checklist?
This checklist is designed for Property Preservation Manager / REO Specialist professionals in the real estate & property management industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.