Collateral Inspections

Inspections are utilized by both purchasers and lenders in order to determine the condition of collateral that is being used to secure a loan. In some cases the age of the collateral and the equity position between the stated value and the loan amount is sufficient enough to alleviate the expense of a full blown survey or appraisal by a professional. In the case of an inspection, a lender may only require someone to inspect the collateral first hand and take some pictures or they may hire a disinterested third party that specializes in inspecting collateral such a boats, airplanes and recreational vehicles.