Help! Need to understand closing on a foreclosed home

Does anyone out there have any experience? I ask only because the house we are interested in does not have running water or electric currently. so, how does the appraisal work from the lending bank? this has to be working, right?

I am lost! any input would help greatly.

Re: Help! Need to understand closing on a foreclosed home

For a foreclosure the bank turns everything off and will require you to turn everything on and off if you need them to be on. Electricity doesn't need to be on for an appraisal unless the bank is going to get out of the car and walk around the house--the same with water. Appraisers usually do drive bys and comps of the area but with the way the market is it might be more involved.

Be careful though because I had a client who bought a foreclosure and never had the water turned on when he had the house inspected it turned out after they closed and turned on the water they discovered a plumbing problem.

Re: Help! Need to understand closing on a foreclosed home

I bought a foreclosure a couple of years ago. None of the mechanical systems were on. It was as-is.....my bank didn't question it.

Re: Help! Need to understand closing on a foreclosed home

I bought a foreclosure last year and the bank came inside to appraise it. The house was winterized by the bank and it was our responsibility to arrange for it to be de-winterized. DH is a licensed contractor so we didn't have to pay to do it- he was able to.