NJ When do you need a construction Loan (Sussex: foreclosure, lawyer)

[quinnstone2]

My husband and i are looking at a home In Sussex County and it is a forclosure with the heat turned off.
Our realtor informed us that we will need a construction loan to have the utilities turned on.
We are first time home buyers (long time home renters) and this doesn't make sense to us.
The home has been unoccupied for a while and does not have an oven/stove but we have one that we can throw in to smooth things out.

Thoughts?

Thank you.

[jaymoney]

Talk to your realtor for clarity and your lawyer for advice, that's the best way to get the best possible advice for your specific case. You're already paying them anyway.

[Retriever]

If that foreclosure went through the winter months without heat, then there is a likelihood that there is damage to the sheetrock or plaster, and the paint throughout the house will be cracked and damaged, and--of course--if the pipes weren't drained properly prior to the heat being shut off, then there will be damage to the plumbing. Perhaps the reference to a construction loan is an indication that the house will need a lot of work in order to make it habitable.

This is just something to consider, but obviously the OP needs to make specific inquiries regarding the condition of the house

[MontclairNative]

Are you getting an FHA loan? Doesn't sound familiar. Ask the utility company or building dept.

[nybbler]

Originally Posted by Retriever

If that foreclosure went through the winter months without heat, then there is a likelihood that there is damage to the sheetrock or plaster, and the paint throughout the house will be cracked and damaged

It hasn't been nearly cold enough to damage paint or sheetrock.

[Retriever]

Originally Posted by nybbler

It hasn't been nearly cold enough to damage paint or sheetrock.

It all depends on how long this foreclosure has been sitting without heat. This past January, for several days Sussex County had low temperatures in the 5-10 degree range.