Buying Bank owned home

[fire1ss]

What is the name of your state? NJ
I am looking into buying a bank owned property. The home is currently empty with the electric, gas and water turned off. I understand that a bank will not accept contingincies on an offer. How do I go about finding out if these systems function? I was told I can have an inspection durig attourney review and still back out at that point. If the systems are off because the home is unoccupied then they can not be tested duing an inspection. The home is in need of many repairs including total kitchen install (empty room ) but these are major items to go in blind about?

 

[HUD-1]

See if the bank will let you turn on the utilities in your name for the inspection. You would have to pay any fees involved. After the inspection, have them turned off again.

 

[LindaP777]

After the inspection, have them turned off again.

And have the house winterized, again.

 

[eworldes]

Be sure that your bank will finance a home without a kitchen. I was told by my bank that without a kitchen I would need "construction financing."

 

[Michiganbuyer]

Stop, look before you leap....

Go directly to the local unit of government and take a look at the property file. Also check with the water dept and local gas company. If they indicate that the utilities were turned off and you live in an area when temp down below freezing....the house could have had damage. Read bank's contingency document carefully. If any reference is made about environmental, leins or incumbrances....these are read flags. If the property is new and never occupied, check for the certificate of occupancy and if the benefits have been paid (over $5,0000.00) for the utility hook-ups at street levels. Many builders and banks are leaving those expenses until closing. You must get the bank to allow you to turn on all the utilities as well as the air conditioner, its the only way to know what you are really dealing with. The last house I wanted for my family....suffered a complete flooding and a builder was hired to do a quick stop repair. If I hadn't looked closely and caught the warped doorwall casings....I wouldn't have known that the flood had found it's departure from the second floor of the house through the celings and out the three doorwalls. The bank owned the property when all that happened and felt because it was BOP they didn't owe it to the buyer to provide a disclosure statement to the fact. They instead wanted me to waiver all my rights and hold them harmless in the future for environmental (most likely mold developing) and liens unknown and unpaid (most likely contractors). In the end I walked away for the house. I could chance what may appear in the years ahead of ownership.

 

[LindaP777]

As a very conservative buyer, anytime I buy a "bank owned" property with no utilities turn on, I make sure my offer is low enough to cover a new furnace, new water heater, burst pipes, etc just in case I have to do a lot of replacing ~ and still turn a profit. If they don't need replacing, I'm way ahead of the game! (Never has everything needed replacing, but I have had a few burst pipes over the years!)

 

[CharlotteInvest]

usually banks will allow a 7 day inspection period, because they know most buyers want to live in the house and they are going to want a peace of mind. as far as water is concerned you can always use a water key but with the gas and electric you are on your own.