About 2 months ago, Fannie Mae changed their policy so that only owner occupants could purchase their foreclosures during the first 6 weeks of the listing. Of course Hud has this in place already for their foreclosures,

I am sure that Freddie Mac and Ginnie Mae will soon follow suit.

However, this is for naught since the listing agent nor the potential selling agents are allowed to turn on any utilities prior to the offer or closing.

How many potential homeowners are willing to purchase a property without knowing if everything is in working order? I know that for Hud properties we are given an inspection report but I have found some many things wrong that were not addressed in those reports.

Freddie Mac in conjuction with HomeSteps is offering potential homeowners a 2 year home warranty if they purchase. But, they are not allowed to inspect property with utilities on.

I am the primary listing agent for Wells Fargo foreclosures in my area. One of the first things I am asked to do is have all utilities turned on. Owner occupants are buying some of these properties and at a higher price than investors are willing to pay.

Two weeks ago, I showed an owner occupant a Freddie Mac foreclosure and the first thing my client told me was lets make an offer subject to a home inspection. I told him we could do that but could not turn on the utilities. He then told me what good is a home inspection without utilities on? I agreed with him so he thought a few days about the 2 year home warranty that would go with the sale. While he was thinking, an investor negotiated a successful contract. Do you think that investor paid close to what the house is worth? I don't think so! The government is giving away "our" money to investors!

Whats the answer?

1. Give those government foreclosure listings to several "local" seasoned Realtors.
2. Require those local Realtors to turn on all utilities.
3. Stay with the first 6 weeks(owner occupant only).