My buyer who won a HUD bid has almost similar dilemma. When I received the package from HUD, I called the property management company to de-winterize the property. Their answer was specific. They can't turn the water on. Therefore, they will not dewinterize it.
My buyer has a applied for conventional loan. In this scenario, I know that the bank will not lend the money unless all utilities are on.
Hence, I asked the buyer to apply for a 203k Loan right away as this is the only way we can close on a property in this situation. However, be aware that there is a minimum amount that the lender will loan you for the 203K. You have to discuss this with your loan officer.
Since, some repairs are needed, we can easily accomplish the minimum amount required for the 203K, We got estimates for the works such as roof , plumbing and heating and then submitted them to the loan officer.
We asked HUD for an addendum to change Financing Type from conventional to 203K.
Everything else is good to go.
Best of luck to you.