REO property - bank not complying

[Igor S.]

Has anyone had any experience purchasing a bank owned property where the bank will not cooperate with turning on utilities?

This is a new deal and the bank has accepted my offer, but is not willing to turn on the water because they are selling "as-is". From my experience the appraiser still needs to see water running in order to secure financing. My worry is frozen pipes, but there would be no way to check without getting the water on and then re-winterizing.

Thoughts?

[Will Barnard]

Originally posted by Edward Barnes:

Skip the bank...the city won't cut on the water for a day?

Bad advice! What if upturn on the water and the pipes burst causing thousands in damage? Guess who will be sued by the bank!

Better to ask bank permission to turn them on so you can inspect at your cost of utilities which will be very minor and you will need them anyways once you close. After doing so, make sure to winterized the home before you leave to avoid any problems.

If they still do not comply, you have two options. 1. Demand they do or allow you to or
2. Back out of deal for failure of seller to provide inspection access to buyer. Depending on your state and local rules, and whatbisnwritten in our contract, you may be able to sue for damages.