Foreclosed property,no utilities,noHW tank. Need appraisal(FHA) bank won't pay. Is there a way?

Asked by C, Thu Jul 31, 2008

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Sonya Loose, Agent, Beaverton, MI
Thu Jul 31, 2008
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C - I think what your saying is that you are wanting to purchase a foreclosed property but the utilities are not turned on and the hot water heater is gone. You need an appraisal for your loan and the bank that owns the property won't turn the utilities on. If that is what you are asking there is a way...You can have the utillities turned on in your own name for the inspection and appraisal. If all goes well leave them on and if it doesn't have them turned off. The lack of hot water heater shouldn't be a problem, just bypass that. Unless FHA requires the hot water heater to be in place. I hope you are using a buyer agent...they should be walking your though this transaction. Hope this helps you and good luck!
0 votes
Sonya Loose, Agent, Beaverton, MI
Thu Jul 31, 2008
C - I think what your saying is that you are wanting to purchase a foreclosed property but the utilities are not turned on and the hot water heater is gone. You need an appraisal for your loan and the bank that owns the property won't turn the utilities on. If that is what you are asking there is a way...You can have the utillities turned on in your own name for the inspection and appraisal. If all goes well leave them on and if it doesn't have them turned off. The lack of hot water heater shouldn't be a problem, just bypass that. Unless FHA requires the hot water heater to be in place. I hope you are using a buyer agent...they should be walking your though this transaction. Hope this helps you and good luck!
2 votes
Michelle Gor…, Agent, Ada, MI
Fri Aug 1, 2008
A FHA lender sends out a certified FHA appraisor, they make sure the house is in working condition, among other things, a big one, no peeling or chipping paint on a home that was built before 1978. I think a water heater is required..although you could live with out hot water, I think they may require one. The only way you may be able to buy this home with a FHA is a FHA 203K.
FHA 203K is a loan that FHA insures by financing required repairs, min amount of repairs need to be $5,000.00. Here is a website to FHA 203k:
http://www.freddiemac.com/sell/expmkts/fha203.html
1 vote
smith3gary, Agent, White Lake, MI
Thu Jul 31, 2008
C,

Depending upon which FHA product you are using, your lender may not fund for this home. Please verify with the lender about the HW tank before committing to paying for an inspection and having utilities turned on and off.

In general, banks will not pay for anything other than safety issues and not always then.
Web Reference:  http://www.mi-living.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Jul 31, 2008
All buyers pay for the appraisal your mortgage broker will take those fees. Did the listing agent communicate to your buyer agent that the bank wont have the utlities turned on? OR Not been requested yet for the bank to do so. All banks know that you cant have an inspection unless the utilities are on. Alhough OTHER BANKS are no utilities property purchased AS IS

Sonya did reference due to any delays request utlitllies in your name, not expensive have the inspection completed.

Foreclosures in many instances could be missing some appliances the hot water heater is a minor. If you do pursue the purchase just have a hot water heater purchased, delivery and installation on the day of closing.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
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