Terence Williams I just completed a rehab of a bank-owned property, so I can definitely give you some insight into how it all works:
When you buy the property, you buy it "as-is/as-seen,"of course, so make sure you do your due diligence and take all the necessary steps to protect yourself before pulling the trigger. Things like back taxes, title encumbrances, insurance issues, etc, etc are all things to consider, so make sure you have the time, capital and resources in place if you decide to move forward and make sure you figure all this into your calculations when analyzing the property.
Once you buy the property, depending on the circumstances, you will have to call the utility companies to get everything turned back on. However, in some cases, an inspection of certain property systems might need to be conducted prior to this happening (i.e. having an electrical inspection done). Additionally, depending on where the property is, you may have to go through dewinterizing it, so keep that in mind as well.
Once the property is up and running again, you can basically implement your rehab plan and proceed accordingly assuming you've taken care of any issues that might obstruct you being able to start working (i.e. getting certain permits, if needed) As a sidebar, remember to plan on making sure everything will be up to codes upon the completion of the project.
Once you have completed your rehab, you and/or your agent can start marketing the property.
I hope you find some of this information helpful, but please remember, every deal is different and my experience may end up being totally different than yours. Plus, I only listed the most salient aspects of my flip; explaining every detail of my day-to-day experiences would require much more than what I could write in a discussion thread, so be prepared!