Entry by JoeDerhake
This year I think half of the Phase I Environmental Audits that I do are on properties queued for foreclosure. The Phase I Environmental Audits must meet the ASTM Standard 1527-2007, but in a foreclosure environment there are a few differences.
First, most clients want the Phase I Environmental Audit to be completely AAI compliant. To save our clients a few bucks, sometimes we do not order an environmental lien in favor of reviewing a preliminary title report. But, when a lender is taking title to a property the Phase I Environmental Audit should be completely AAI compliant with no limitations.
During a foreclosure, the borrower is not exactly excited about the process. Often the site contact does not cooperate or is completely recalcitrant. Sometimes our inspectors get shined at the site visit. Using an environmental firm with a local environmental site inspector helps mitigate this problem. If the inspector had to fly to the site, then the firm may try to pass extra costs on to their clients. Ask your consultant for a coverage map.
Finally, lenders often want to know what kind of shape their asset is now. Often the appraiser will need a Property Condition Assessment Report in order to deliver a value. The Property Condition Assessment Report also helps when selling the property.