In this case there is a live wire with the shielding melted ( in red with copper wire exposed ).
The furnace panel was completely removed with dangerous electrical components accessible to anyone.
It was recommended to the client the furnace would need extensive repairs , possibly budgeting on the complete replacement of the electrical furnace.

This was not expected by the first time buyer and they realized that they may need to readjust their finances, especially on a foreclosed property owned by the bank.