Electric Co-Op Stiffed By Short Sellers Of Vacant Homes Refuses To Turn On Lights For Buyer Inspections; Makes Deals Tougher To Close

In Hudson, Florida, The Suncoast News reports:

• Withlacoochee River Electric Cooperative policies could pull the plug on potential short sales of vacant homes, a West Pasco real estate leader fears. A gray area exists when a homeowner abandons a home but the bank hasn't officially foreclosed on the property, a WREC spokesman counters. The recession also has saddled WREC with more bad debts.

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• About seven out of 10 residential real estate deals these days are short sales or foreclosures, broker Greg Armstrong with Coldwell Banker F.I. Grey Residential Inc. explains. [...] Withlacoochee executives have been refusing to turn on the power at a vacant house for inspectors if the previous owner left an unpaid balance. Without inspections, a sale can't be concluded, according to Armstrong.

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• The utility is contending with more and more bad debts as people skip out and leave unpaid electric bills, according to David Lambert, manager of member relations for the Dade City-based member-owned cooperative. Problems arise when a former owner simply walks away from a house he or she no longer can afford. "The house hasn't changed hands," Lambert said. "They still own it. It's not a foreclosed home." WREC can't turn on the power until the debt is repaid.

For the story, see Real estate leaders and utility have been at an impasse.