When you buy an "owner occupied" property from Bank of America, the purchase agreement has a special addendum to cover circumstances that arise when the foreclosed-upon owner remains in the home after the foreclosure.
Specifically, these agreements make the buyer responsible for the utility bills incurred while the house is illegally occupied.
In my experience, most of these "owner occupied" houses aren't actually occupied. The bank uses this clause to make the buyer responsible for utility bills that pre-dated the foreclosure.
This week I got hit, again, by bank america for a water bill that pre-dated the foreclosure. It was the third time and I got fed up and walked away from the deal. I feel like they are mis-using the clause to make me take care of expenses they were required to pay when they foreclosed.
Am I dreaming?
Once you close on the property you present your HUD to the utility company showing them when you took ownership of the property and that is when you should become responsible, not for past utilities,.... but I dont know how it works in your state.
In NM, that works with power, but the water company don't care. They won't turn on the water until you pay the bill associated with the house in full.
I had one property with a $7K water bill I had to clear.
Anyone doing flipping in NM, beware of the water bill.
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