Consumption and Real Estate
How we can turn on the utilities for a home inspection if the utility company won’t let us until we close?
Question : How we can turn on the utilities for a home inspection if the utility company won’t let us until we close?
We are FHA preapproved to purchase a home. The home we want has the utilities completely turn off – meter removed from the house due to former owners stealing electric. The bank that now owns the house refuses to turn on the utilites(prob bc they would have to pay big bucks). We agreed to turn the power on in our name, but now the utility co says we need proof of ownership. Can’t get that until we close, can’t close FHA without home inspection which needs electric, can’t get electric without closing. Contacted our congressman, senator, and am now dealing with the BPU. So far, nothing. Other than bringing in a generator, is there anything we can do?
Thank you for all your responses!! The bank REFUSES to turn on the utilities. Listing agent advised us to bid accordingly or go 203k. My realtor is wondering if this is illegal. We’ve since gotten in touch with the BPU and utility executives and they stated they would work with us if the bank accepted our offer. We don’t want to go 203k bc if the house doesn’t need repairs, we’re not going to mortgage money we don’t need (not sure if penalties apply to not using funds designated for 203k). Should we hang in there, make offer contingent on home inspection, turn on the utilities in our name after offer is accepted or walk away? House is almost 75k less than it should be.
PS – for whatever reason, the 203k deal requires $ 16k at closing. It’s also 1.4% higher interest rate.
inspection company
Best answer:
Answer by PureOrLady
Go back to the bank. Have them turn on the elec and bill you. If they can’t do it you will have to find another house (yeah the loan officer should take that seriously and figure out how to make it happen)
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#3 written by estielmo 1 year ago
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#4 written by acermill 1 year ago
The generator is an option, but the bank is also being unreasonable. If they want the house sold, they need to wake up and turn on the electricity, since it’s impossible to properly check the electrical system without power.
Inform your real estate agent that you simply will NOT close this deal unless he or someone else gets the lender to cooperate.
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I have run into this before. There is a solution. I have a business account set up to turn on utilities. I have found that utility companies are more likely to turn on the utilities in the name of a business for a short term period. See if your realtor or the listing agent has such an account. if not make one up. like abc realty. explain that you represent the buyers and need the utilities turned on for 48 hours and billed to the company. you may need a tax id number to set this up.