Can I request an SPDS on a lender-owned property? Is this the same as a CLUE report?

Asked by Pook, Surprise, AZ Tue Jun 23, 2009

I know that with the situation of a lender-owned home, they are not required to give a CLUE report because they've never occupied that home. What I'm wondering is if I can get full disclosure on the history of and condition of a foreclosed property?

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Jonathan Dal…, Agent, Glendale, AZ
Mon Jun 29, 2009
Contrary to what you're seeing here, sellers don't have to occupy the home for a SPDS to be a requirement. There are a handful of questions any seller can answer such as tax liens, whether the house has been sold to someone else, etc.

Having said that, all the lender usually knows about a home is the previous owner didn't pay the mortgage. And the lender's almost certainly going to require that you waive the SPDS before it accepts a contract.

You'll likely never know the full history and condition of a foreclosed property. Checking with the neighbors might help but there's an excellent chance what the neighbors think they know may not be correct.
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Stew Keene, Agent, Scottsdale, AZ
Wed Jun 24, 2009

The CLUE report of insurance claims the bank will not offer BUT you can call your insurance agent and ask for a quote. They will usually do a limited search (remember that you are not the homeowner) so you'll at least have some idea of what may have happened on the home. Also, ask for a letter of release from the bank with authorization allowing you to pull a clues report. that may also be another way around it.

Your closest bet to a sellers disclosure might actually be the neighbors and the local police department. The neighbors around the home may be able to tell you something about it's history and the local area precinct might also be able to tell you about any drug house or crime history and so on.

Hope this helps you,

Stew Keene
Signature Realty Group
2008-2009 Master of Real Estate Award
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Donald Keys, Agent, Scottsdale, AZ
Wed Jun 24, 2009
You may want to ask your REALTOR for a copy of a BLANK SPDS so you know what the seller was suppose to disclose. I educate my buyers to use this form along with SEVERAL OTHER RESOURCES (Buyer's Advisory Document, get a home inspector, roof inspector, a/c inspector, pool inspector, mold inspector, energy efficiency inspector, independent appraisal, dozens of websites, talk to the neighbors, check out the home at all times of the day/night weekends etc...) to make sure they are comfortable with what they are buying.

Talk to YOUR insurance agent about a CLUE report on the property. You can also try this link to find out more about clue reports:

I hope this helps :)
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Jeff Hockett, Agent, Glendale, AZ
Tue Jun 23, 2009
Not typically. The lender has no idea the history of the home as they never occupied the home. The SPDS are different than a CLUE report. The CLUE report is history of insurance claims against the property while the SPDS is a disclosure from the seller as to the history of the property. On a foreclosed home the current owner (bank) has no idea the history and won't take the liability of any previous problems. The owner also won't order a CLUE report for the property. It is strongly recommended you have a professional home inspector look over the home. While the bank usually won't fix any found defects at least you know what you are buying.
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