Electricity needed in a REO

9 Replies

This seems like a simple issue. I am wanting to know who is responsible to turn power on in a house that is bank owned in order to verify that all sytems are working properly prior to closing a deal. Please give me some insight on this.

Thanks.

Whoever wants to see it done the most. 

If you are buying one of the properties I foreclosed on in tax sale. I am not paying for the power to be turned on for an inspection. I sell my properties as is and expect my buyers to price n the risk of problems into their offer. 

However there was an exception, a guy offered me more for the property that I otherwise expected, so I turned on the power.

Basically it is a negotiation and my guess is, in most cases, the bank will expect you to pay.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

Thanks Ned.

Probably the cheapest way is to use a generator

@Account Closed - use a generator that can power most if not all the house. To start with, if the property is not in your name you probably can't initiate the order anyway - and if you could, do you really want to put the electricity in your name, pay the deposit, etc? Also, since it is an REO property, you'll also likely run into the power company requiring any unpaid electric bills to be paid first. Not sure about Illinois, but in Georgia if the power has been off for more than six months, the power company requires an electrical inspection prior to turning the electricity on, which requires a permit and they also require the water to be turned on before they'll turn on the electricity.

In other words, you really don't want to take this on yourself just for due diligence - rent a generator!

David Begley MBA, Begley Capital Investments, LLC | [email protected]

Yep, a generator is easy.  Either direct wire, or use a dryer plug in the dryer outlet.  

@Account Closed it's pretty standard in Central Florida that if you want power on, you turn it on. Most REO's have it on the listing - "want it? Pay for it.."

@Account Closed   Another solution that may work is getting permission from a neighbor to splice a line from their house to yours for the amount of time it takes to complete your inspection.  This was the 2nd suggestion Georgia Power/Atlanta City Permit office gave me in a similar situation.  Obtain permission to splice from a neighbor or use a generator.  I elected to use a generator and would suspect that would be the path of least resistance, not to mention the least expensive.  

David Begley MBA, Begley Capital Investments, LLC | [email protected]

David,

Thank you much for your insight.

Thank you all.