I hope most Americans are aware of the financial troubles of Fannie Mae and the questionable practice of the Federal Government backing Fannie Mae losses with taxpayer dollars. And I am sure that many Americans are aware that Fannie Mae owns thousands of recently foreclosed homes that have and are being placed on the real estate market for resale.
Having performed home inspections in southern New Jersey on countless foreclosed homes, I am well educated in the typical condition of these properties. In short, most foreclosures have serious defects.
It is not unusual for a foreclosed property to have been vacant for a year or more with no heat or air conditioning, allowing moisture to accumulate in the home in addition to permitting water pipes to freeze and burst. Due to the above, substantial mold growth is very common in these troubled properties.
The situation that has created the foreclosure is almost always lack of funds. The lack of funds conduce a state of little or no maintenance for a long period prior to the abandonment or eviction from the home. In addition, occasionally the prior homeowner is frustrated by the inevitable loss of the home and will sabotage it prior to leaving. Sabotage often includes disconnecting a drain pipe under a sink and leaving the faucet operating. I have witnessed other types of sabotage more extreme than water, but I will leave that to the reader's imagination.
The above circumstances result in Fannie Mae acquiring foreclosed homes in a distressed condition. That is not Fannie Mae's fault. What happens next is. Fannie Mae performs no credible home inspection to determine the condition of the home. Fannie Mae will provide winterization in the colder parts of the country and will review the home for improvements to enhance marketability. But most often these improvements are only cosmetic and nothing more than a calculated deception by Fannie Mae to masquerade the home's true condition.
For example, a Fannie Mae foreclosed home that I recently inspected showed new carpet, fresh paint and replacement toilet tank covers (that did not properly fit any of the toilets). Further, new kitchen appliances were on-site waiting to be installed. To an inexperienced homebuyer the house appeared to be move-in ready. 
Not so fast. My inspection revealed a major mold problem, a suspected illegal addition, dangerous electrical wiring, a faulty furnace, plumbing problems and a severely rotted deck in addition to numerous other issues. While this home inspection proved to be very valuable to the purchasers, they were taken by surprise by the number and severity of the issues.
Unfortunately, not all buyers will insist on a home inspection and a small percentage of ethically-challenged real estate agents will discourage professional home inspections of Fannie Mae properties and similar homes. They do so by making statements such as "the property is being sold as is" and "an inspection can be used for information purposes only". While these statements can be accurate, the result often intended is to create an illusion to a homebuyer that paying for a home inspection is a waste of money.
Aside from performing essential repairs to a home's roof, structure or systems, I strongly recommend that Fannie Mae sell the foreclosed property "as acquired" with no cosmetic work performed. In my opinion, this will help to curtail the dubious practices of Fannie Mae, the mistress of deception.
Glen Fisher southjerseynpi@aol.com
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