Everyone here is going on the assumption that banks are conducting themselves in an "honorable" manner, they're not. If they're not willing to turn the utilities on then they're not willing to sell the house.

I don't understand how some of this seems reasonable to people. Sure, the banks have taken a large hit, they're also largely, not solely, responsible for the economic crisis we are in.

Pass on it, they know something that they have a duty to disclose but know if they do it will hurt their chances of selling the property. Not worth your time.

I disagree - Banks do not have a duty to disclose what they most likely have no way of knowing.

REO doesn't even have a legal duty to disclose in many places.

As for the power issue - if there is a short somewhere in the house and it burns down as a result of not being thoroughly and expertly inspected before the electric company sets the meter - are you willing and able to pay for the damages and liabilities it could create?

You want a home at a huge discount but without any risks - good deal if you can get it.

Given the current housing market and the number of foreclosures while the banks do not necessarily have an obligation to disclose what they most likely do not know, I believe they have an obligation to find out.

REO doesn't have a legal duty to disclose in the State of Missouri. However, do you think that given the state of the economy maybe they SHOULD take steps to find out and disclose as necessary?

While I understand your comments about the power issue, why, exactly, do you think it should be the purchaser's responsibility to be willing and able to pay for any damages that turning the power on could create. Maybe, the banks have an obligation to have the house, "thoroughly and expertly inspected before the electric company sets the meter".

Let's remember folks, possession is 9/10ths of the law. The banks are the ones that made the decision to lend money to people they shouldn't have, and they made money off the transaction. While it may not have been their greed alone that has landed us in the current housing crisis, they are certainly a major contributor. Now you want to let them off the hook by saying it's not their responsibility, it's on the purchaser? When exactly do you plan on holding them accountable for their actions? I vote that we do so right now!

Please accept my apologies for being so blunt. But as a taxpayer, these people got bailed out, or are in the process of being bailed out, for their poor business decisions. I am going to pay for it, my children are going to pay for it, and my grandchildren are going to pay for it. Responsible banks don't have many foreclosures on their hands, why? Because they conducted themselves rationally and responsibly.

If the bank can't be bothered to turn the utilities on, it's not worth dealing with them!

No apology needed - I disagree with you. I see it as there are many facets that had to take place to get to where we are now - the banks did.t do it by themselves.

Look - it is real easy - if you want something done a particular bank isn't willing to do for you - move on to the bank that will.

Right now there and many people losing their jobs who were well qualified for their mortgages and will soon be losing their homes as well - don't be looking at the banks as the scape goat for all the problems - the individuals have an equal or greater part in it.

Here our banks issue "special" vs. "general warranty deeds", meaning, they will not warrant the REO house or provide a filled out property disclosure.
Our purchase contract also advises the buyer of performing their "due diligence" as far as physical and title inspections of the property and tells the buyer if condition is a concern, to have utilities turned on at their expense.

No seller, an individual or bank is required to do anything to accomodate a buyer, and if the buyer wants assurances from either, they better continue renting or stick to looking at non-REO's.

I didn't have the plumbing turned on for my personal inspection of an REO, and it has plagued me a bit since moving in.

I would always play hardball with the bank, and make sure it's written into the PA that they pay for the utilities being turned on. It's not your fault they made a bad choice to lend money before.

Huh??? You better get permission from the listing agent to have them turned on! You are NOT authorized to do ANYTHING with seller's consent. If the seller won't grant permission to have utilities turned on to allow for you to adequately perform Inspections prior to contingency removal, then I would tell the listing agent/seller that this deal isn't going to happen. Who in their right mind would remove Inspection Contingencies without utilities on unless you are buying the property for land value only?

Fortunately, all my REO assignments have required me to get utilities turned on for Inspections. When I respresent buyers, the listing agent also gets them turned on. If I couldn't have utilities on for an inspection, it's real simple... find another property! For those of you finding this a problem, I would write in the offer that "all utilities to be turned on for buyer to perform Home Inspection".

Buyer beware is the only thing you need to remember. Regardless of disclosures or not you can't assume anything is 100% accurate. PacificBreeze you are dead on right!

As a home inspector I go through this a lot with bank owned property. First, in Minnesota the banks are not required to disclose, right? Second, I would not want to turn anything on in these houses that have had the heat turned off over a winter or two. I am a specialist in foreclosure inspections and see problems all the time that a bank or property management company would not recognize. Many home inspectors don't know how to spot these problems. I was just in a house that this realtor took an offer on from a previous client and then the deal fell through. She said there wasn't anything wrong with the house according to the other private inspector and the truth in housing inspector and showed me the report when I was through. Well the foundation was shoved out because it was once unheated through last winter. The floor joists in the center of the house were almost off of the foundation wall and ready to collapse. Terrible...and costly, but it all could have been prevented if the heat had been left on. Someone should wise up the banks or get this info to the right people.

I know this thread is old. But let me correct a lot of people here. REO and relocation is my specialty. I can tell you all 99% of the time the banks are willing to turn on power and electric for a buyer’s inspection. In fact 90% of the time it’s the listing agent’s responsibility to have them turned on. The only exception to that is gas. Too many homes in the past had too many issues. Like the polite lights not started correctly etc. So except for gas most likely it’s the listing agent fighting you about electric and water not the seller. Many agents try to list reo properties and don’t know the expenses involved. Most of the time the listing agent has to pay all the bills and get paid back. Now getting paid back is not an issue it waiting the 2-6 months for the check. So the listing agent just may not have the financial means to front the deposits. Most of you all don’t know the financial investments to do reos. I personally need an operation account in excess of $40,000. It’s not just electric and power, its lawn care, trash outs, sales cleans, HOA/condo, back taxes, etc. Some of you all say well it’s only a $100 deposit. Well if you have several properties in inventory that can actually be in the thousands. If you do the amount of properties I do it was better to just put up a bond. Look at any one time I can have on average $2500 outstanding per property waiting on being paid back. And I have over 100 properties in my inventory.
Look I am not bragging or complaining just stating the facts here. The average realtor just does not have the resources to properly service a reo. And if they have say 5 reo listings they are just strapped and don’t have the deposit money. So they try and get the selling agent to get the buyer to do. Is it right no but it is very common.

So my input here is it most likely is not the seller but the listing agent

Alan,

I wish I was inspecting in Florida. Here in Minnesota it's like pulling teeth to get the house ready for an inspection. Even the VA would not turn the water on until after closing so the buyer offered to pay and they still would not do it.