HUD home Inspection
Hello BP,
I recently found what I hope to be my starter property. This is a HUD home in PA;is it normal for the buyer to have to pay an turn on utilizes for the home inspection? Also is it normal for the seller/bank not to allow me to turn on the water? Thank you for your time.
VAUGHN BLACK
Yes, some HUD properties won't allow you to turn on water because their is plumbing damage. I would contact your local realtor that is approved to submit offer on HUD Homes website. It will give them additional info. Every HUD property has a PC report (property condition report) which states what mechanicals have been tested and if they work.
My first property has also a HUD property. I'm assuming you need the water turned on for conventional financing. I wasn't able to ever get permission to turn on the water because on the PC report it failed an air pressure test. We ended up taking out a 6-month note which is like a construction loan then fixed any problems then get the inspection when I refinanced.
This is a common issue for those who want to do an inspection or their appraiser requires the utilites on
Your agent has to submit a form to the field service manager to allow you to have the utlilities on along with any fee required as some will charge a de winterizing fee. You are also responsible for any and all connection fee and if there are any back charges due HUD will not pay them. If the utility company requires an inspection before initiating service and upgrades are needed, you will not be able to complete them as HUD allowed no repairs/modifications to be completed prior to closing
@Greg H. I'm curious as to how many HUD's did you close in the month of April '16?
I closed 2 in April but currently have none under contract . I was awarded a bid earlier this week but we are in Cabo and the property did not seem worthy enough to put down my cervesa. Lol. My acceptances seem to come in waves as I always stick to my number
@Greg H. Awesome! Enjoy Cabo and have a cervesa for me. (wink)
@Inesa Tomaszewski @Corey Hostetler @Gerg H
Thank you all for your help. My agent wasn't the best help and seemed very confused. I had to set up all of the utilities and reschedule to have the home inspector and appraiser come back out.