This is a rush transcript from "On the Record ," November 9, 2007. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, HOST: Steve Carcerano was Kathleen Savio's neighbor. He was the first person to find her dead body in the bathtub. Steve joins us live in Bolingbrook, Illinois. Welcome, Steve.

STEVE CARCERANO, FOUND SAVIO DEAD IN BATHTUB: How're you doing, Greta?

VAN SUSTEREN: Very well. Steve, let's go back to March of 2004. When was the first time that you were asked to go into Kathleen Savio's house? Under what circumstances?

CARCERANO: I was coming home from work that evening, and entering the subdivision, coming down our street, and Drew pulled up next to me in the police officer's car and he asked me to go to the house within the next 10, 15 minutes. He had a locksmith coming to the house. And myself and her best friend, who's my neighbor, were going to go to the house. At that time, I...

VAN SUSTEREN: Did you — go ahead. I'm sorry.

CARCERANO: At that time, I pulled up in the driveway. I went next door and got her best friend. We went to the house. The locksmith was there. He opened the front door, and her and I proceeded to walk upstairs. Drew stayed downstairs by the foyer with the locksmith.

She walked towards the bed, I walked towards the closet. And then I left the closet area, went into the bathroom. I noticed an exercise ball or a balloon that I seen in the bathtub and I — as I walked closer towards it, I seen that it was Kathy naked.

At that point, I screamed for her best friend. Her best friend came in there. She started screaming, and that's when Drew came up the stairs immediately. Upon seeing Kathy, he started screaming, Oh, my God, oh, my God, what am I going to tell my kids? Very emotional at that time.

VAN SUSTEREN: Now, there's no blueprint how you're supposed to react when you see someone who's found dead, but did Drew Peterson act any way unusual to you that evening?

CARCERANO: No, not at all. Actually, he checked her pulse. Like I said, he started screaming. And I looked right into his eyes, Greta, and he was very emotional right away.

VAN SUSTEREN: Did you know Drew before that night?

CARCERANO: Say that again?

VAN SUSTEREN: Did you know Drew before that night?

CARCERANO: Oh, yes.

VAN SUSTEREN: Did you know...

CARCERANO: He was my neighbor for about four years.

VAN SUSTEREN: And you knew Kathleen, as well, before that night.

CARCERANO: Yes.

VAN SUSTEREN: Did you know of any problems in their marriage?

CARCERANO: They were going through a divorce, obviously, and there was problems going on within the divorce, visitation issues. He would bring the kids back a little late, she would get mad at him, that type of stuff.

VAN SUSTEREN: So pretty routine...

CARCERANO: But I've never seen — I've never seen...

VAN SUSTEREN: Routine stuff?

CARCERANO: Absolutely.

VAN SUSTEREN: Was there a lot of blood in the bathtub, if you noticed, or any blood anyplace else in the house as you walked through the house that night?

CARCERANO: No, not at all. The only blood that I noticed was at the bottom of the bathtub going into the drain that was dried. There was a little blood coming from the nose area. But as stated in some of these interviews, there's blood-soaked hair and all that kind of stuff, I did not notice any blood in her hair. Her hair was wet, but I did not notice any blood at all. So that — I don't know about that stuff that's been said about the blood-soaked hair because I did not notice that, and I was first on the scene.

VAN SUSTEREN: Did you move her at all?

CARCERANO: No, ma'am.

VAN SUSTEREN: All right. Steve, thank you.

CARCERANO: Thank you.

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