Foreclosure, rehab and conventional financing

[Anil Sharma]

Hello everyone, I recently bought a foreclosure property using HML and expecting the owner to move out prior to this weekend (verbally agreed). Is there any standard cash for keys agreement that is usually signed by both the parties when the keys/cheque transaction takes place or that is not required once the keys are handed over?

Next, I'll need to start talking to few reputed GCs and try to get bids for the rehab work. In order to come out from the HML high interest cost, we have been talking and started a conventional loan process. The property is in good neighborhood to use as primary residence. As the property has been poorly maintained and kept, it will require major rehab (including re-roofing and major work on re-plumbing/electrical due to this being an old house). My question is: should we attempt to get it appraised prior to starting rehab work so that HML could be paid off earlier (though it may not be appraised at a desired price to pay off the HML) or should we do the rehab first prior to the appraisal (pay another ~3 months of high interests)? I'm relatively newbie to this game and doing it first time. Apologies for anything poorly written here. Thank you