New to HUD real estate deal

[Gracw W.]

Hello, my name is adette. I came from an asian country and moved here in america 5 years ago and now a naturalized US citizen.I am married,26 years old,female, no kids and have owned two houses,my home and the other one is a rental.I love being in a real estate business. Now i have a big question about HUD real estate, i am not really an experience person on buying a hud home. We found this house that we like and We have won the bid on purchasing this one property for rental and will be using a conventional loan. how do you proceed on getting a loan when the bank appraisal need to have all the utilities in the house on, and the HUD people refused to turn on the water utility?just crazy. Any ideas? I am new to this, I have not purchased any kind of hud homes before.Is it possible that we sneak in to have the water meter hook up ask the city to do it? im not really sure about it. I dont want to get fine either from doing something that would have bad consequences. We have a real estate agent working with us but she is not that helpful either.My husband and I are confuse we dont know what to do next. pls. help.thanks for your feedback

[Greg H.]

@Gracw W.

I saw that you have posted this in a couple of different area but I will address it here

First off, attempting to get a conventional loan on a HUD home is very difficult for the reason that you are encountering. The appraiser is going to require that all the utilities be turn on for the appraisal which you have now discovered. HUD guidelines only provide that the utilities can be turned on at YOUR expense during the first 15 days after contract acceptance and only for a 72 hour period. I would suggest that your agent beg the Field Service Manager to allow an exception to get them turned on at this point. Your agent has received the "Accepted Offer" email from the Asset Manager detailing who to contact.

Here are a few tips for anyone trying to buy a HUD home especially with a loan :

-Get an experienced agent who has worked with HUD. HUD transactions are different than any other and frankly no matter how long he/she has been an agent....you don't know what you don't know

-Select a mortgage company that is familiar with the HUD process as the timing of the appraisal and how the loan must be funded is different from any other transactions

-Understand that you the buyer be all the costs of turning on utilities and any damage that could result from doing so. Many municipalities will require any past due bills from the property to be paid before turning on utilities. I have had clients pay upwards of $1500 plus the cost of inspection/appraisal to get things done. In some cases, HUD knows of a potential leak and therefore utilities cannot be turned on therefore no appraisal is possible. The information would be contained in the PCR(property condition report) or Property Condition Summary/Disclosure Add depending on the Asset Manager

- You only have 15 days from contract acceptance to get things done and the utilities can only be on for 72 hours

Feel free to contact me directly if I can help