HELP! I received an offer for short sale listing I have which is great! The utilities have been shut off because owner owes alot of money, however he will not pay outstanding balance to turn the utilites back on. Therefore buyers cannot complete inspection! Would Bank of America pay to get utilities back on in order to complete the short sale?
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I always add a clause to the contract that the buyer agrees to turn utilities on for inspections. Our power company will turn power on for $27.00 connection fee. Water is a bit different in each area, our area we have to give a deposit and pay a connection fee.
Several Options. Almost all utilities companies give a complimentary turn on for inspections. If not, you could pay a very small amount for a turn on/off immediately after inspections. It will have to be in your name because the homeowners can't get it turned on in theirs. If I know that closing will occur very soon, I may choose to leave them on. Remember that in order to have gas turned on, you must have water and/or electric on first. Lien holders won't turn on utilities. If the home has been winterized, someone needs to be there when the water is turned on. Make sure everything is functioning property or there may be a flood. Also, that's why I sometimes to choose to leave the utilities on. It's a pain in the .. and expensive to keep winterizing the home after each inspection.
Aileen. This is not BofA's problem and they will not pay to have utilities connected. If there are large outstanding bills that need to be paid then you should just handle them as you would any other lien against the property, Call the utility companies and negotiate.
I make it a part of my listing agreement that the seller agrees to have the utilities connected for inspections. This is a topic that needs to come up at time of listing. That way of there is an issue you will know up front.
You can also negotiate as part of the contract thatthe buyer pays to have utilities connected.
I have found that most utilities companies will connect service for inspections for a very small fee.
I have standing accounts with most of the utility companies in my area and can have utilities connected with nothing more than a phone call or fax.
If you are going to be handling short sales then yo need to have a solution in place for the future.
Yes see if buyer will put utilities on! I like to ad to contract, that buyer will provide utilities for inspections if needed. You and the buyer may need to smooze utility companies! In my area, this past due balance especially with water, needs to be addressed on the HUD1, at that point the bank may allow at closing, if not paid, new buyer would have to pay (or agents) balance at closing.
Aileen - You can ask the buyer to turn on the utilities as an alternative. I have many times. It's best to disclose this prior to receiving an offer, of course.
agreed.