Why banks turn off the water to foreclosed homes and turn it back on before inspection and closing
Banks often turn off the water to foreclosed homes for a few reasons:
To reduce the cost of maintaining the property. Banks are responsible for maintaining foreclosed homes until they are sold. This includes paying for utilities such as water, gas, and electricity. By turning off the water, banks can save money on their maintenance costs.
To prevent water damage. Foreclosed homes are often vacant for a period of time. During this time, there is a risk that pipes could burst and cause water damage. Turning off the water helps to reduce this risk.
To protect the plumbing system. If the water is left on in a vacant home, the pipes can freeze and burst during the winter months. Turning off the water helps to protect the plumbing system from this damage.
Banks will turn the water back on before the inspection and closing for a few reasons:
The inspector needs to be able to test all of the plumbing fixtures in the home. The inspector needs to make sure that the plumbing is working properly and that there are no leaks.
The buyer needs to be able to see that the plumbing is working properly. The buyer wants to make sure that they are not purchasing a home with plumbing problems.
The buyer needs to be able to move into the home after closing. The buyer needs to have access to water in order to live in the home.
It is important to note that the water may not be turned on immediately before the inspection or closing. The bank may need a few days to schedule the plumber and to make sure that the plumbing is working properly.
If you are purchasing a foreclosed home, you should ask the seller or the bank when the water will be turned back on. You should also schedule the inspection and closing for a time after the water has been turned back on.
Tips for first-time homebuyers purchasing foreclosed homes
Here are some tips for first-time homebuyers purchasing foreclosed homes:
Have a home inspection done. A home inspection is essential for any home purchase, but it is especially important for foreclosed homes. Foreclosed homes may be in need of repairs or renovations, so it is important to have a professional inspect the home before you purchase it.
Be prepared to negotiate. Foreclosed homes are often sold "as is," which means that the seller is not responsible for making any repairs. This gives you the opportunity to negotiate the price of the home, especially if there are repairs that need to be made.
Get pre-approved for a mortgage. Getting pre-approved for a mortgage will show the seller that you are a serious buyer and that you are able to afford the home. This will give you an edge over other buyers who are not pre-approved.
Purchasing a foreclosed home can be a great way to get a good deal on a home. However, it is important to be aware of the potential risks involved. By following these tips, you can increase your chances of having a successful home purchase.