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Answers (11)
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
You can check the date of the original post in its lower right hand corner. When a post is this old it's probably better to post a new discussion about the topic. This buyer has probably already closed on a home.
- Adam Kruse, "SaintLouisRealty"
- Contributions:314
you are getting an awesome deal for a reason, theres risks.
- Alyse Sands, "Alyse Sands"
- Contributions:69
This is something that your agent could have found out for you prior to the contract but, normally, HUD homes aren't responsible for utilities to be turned on for the buyer to have a right to perform an inspection. HUD provides a large assortment of addendums for the buyer to sign. Check to see...one may state something like, if the buyer chooses to have an inspection, the buyer is responsible for turning on utilities.
- Kimberly Hollins, "home1001"
- Contributions:237
It is up to the buyer of the HUD home to request to have utilities turned on. What you need to do is complete the necessary HUD documentation to request them on. They will be turned on in the buyers name and in some cases there is an additional fee which needs to be paid by the buyer to have the property re-winterized.
- Bill Friday, "Bill Friday"
- Contributions:3138
I disagree. If the second appraisal comes in lower, you are stuck with it. I think the idea of getting a home inspection, however, is right on target. If you happen to be an investor, FHA will allow you to finance (3% down) with permission from their local office (HOC).
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
I wouldn't recommend relying on the HUD appraisal and inspection even if the buyer is going FHA. They are not reliable. I have a client who is doing one and the AC is missing even though the inspection said it was there and there is no 220 power to the house even though the inspector said everything checked out. Buyers should get their own inspections and appraisals. It's worth every penny.
- Bill Friday, "Bill Friday"
- Contributions:3138
You might want to rethink your financing. It appears you are using conventional financing to buy a HUD home, this is problematic. If you use FHA financing you can use the HUD closing attorney, HUD appraisal and HUD inspection. Chances are there are some repairs required which are covered under an escrow set up at the time of closing.
It is true that an FHA loan will involve a front end insurance cost but if you stipulated HUD as paying the closing costs, you will save more overall by going with the FHA and letting their attorney close.
It is true that an FHA loan will involve a front end insurance cost but if you stipulated HUD as paying the closing costs, you will save more overall by going with the FHA and letting their attorney close.
- Edward Wood, "WeBeatBigBankRates"
- Contributions:12
Depends who the asset management company is for HUD in your area. PEMCO is in our area but SWA is another one and their procedures look very similar. Here's the jist below, also a link to this document:
LINK HERE
2. The utilities must be activated by the purchaser, or broker, or broker's representative (in the purchaser's name). The utilities may not remain on for more than two days (48 hours). (In DeKalb, agent must remit $40.00 in certified funds made out to PEMCO, LTD for water connection & disconnection, PEMCO, LTD will then notify DeKalb to turn water on. In Atlanta, East Point, College Park and Clayton County, agent must turn water on in their name).
3. Purchaser is responsible for all expenses resulting from the inspection, including repair of damage to the property within the two day (48 hours) period.
4. The broker or broker's representative must be present during the WATER UTILITY connection and complete inspection.
5. The purchaser may not make any additional repairs to the property prior to closing.
6. The broker or broker's representative is responsible for ensuring that the property is returned to the same condition as before the inspection.
7. If utilities cannot be turned on due to code violations, known defects, or utility company policy, the Home Inspection Request will be denied.
LINK HERE
2. The utilities must be activated by the purchaser, or broker, or broker's representative (in the purchaser's name). The utilities may not remain on for more than two days (48 hours). (In DeKalb, agent must remit $40.00 in certified funds made out to PEMCO, LTD for water connection & disconnection, PEMCO, LTD will then notify DeKalb to turn water on. In Atlanta, East Point, College Park and Clayton County, agent must turn water on in their name).
3. Purchaser is responsible for all expenses resulting from the inspection, including repair of damage to the property within the two day (48 hours) period.
4. The broker or broker's representative must be present during the WATER UTILITY connection and complete inspection.
5. The purchaser may not make any additional repairs to the property prior to closing.
6. The broker or broker's representative is responsible for ensuring that the property is returned to the same condition as before the inspection.
7. If utilities cannot be turned on due to code violations, known defects, or utility company policy, the Home Inspection Request will be denied.
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
HUD requires that you submit a special form to get permission from them to turn on utilities. And you will have to re-submit when you have them turned on. The paperwork they send with this form explains everything.
- Michael Emery, "MikeEmery"
- Contributions:7298
You are responsible for paying to have utilities turned on. However if there are past due bills, chances are the utilities would want them paid prior to resuming service, even if temporarily. If you restart utility service you might be liable for past due amounts. (Those past due bills are usually covered by the title company at or prior to closing from proceeds of the sale, so you are not normally liable for past due bills).
I had a listing that had a $700.00 past due gas bill So of course the gas company wasn't willing to restart services. However the bill was taken care of at closing.
There might be a less expensive alternative to turning water on to the property. Ask if a plumber can do a pressure check of the system using pressurized air.
I had a listing that had a $700.00 past due gas bill So of course the gas company wasn't willing to restart services. However the bill was taken care of at closing.
There might be a less expensive alternative to turning water on to the property. Ask if a plumber can do a pressure check of the system using pressurized air.
- Edward Wood, "WeBeatBigBankRates"
- Contributions:12
Some utilities will allow temporary "turn-on" for inspections. You can call and request. : )
We won bid on HUD home. We need an inspection done. Who is responsible for getting utilies turn on?
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