Health risk with Bank Forclosures

[punjabigyrl]

I have seen numerous REO's and the one thing that I have noticed is the mold issue. One house I saw in Leonardtown since 2004, this house has been on sale by the builder, then foreclosed now the bank is trying to sell it. In 2005 it had slight mold issues but were fixed then since then the house is vacant and this time I went with the realtor to see it and there was mold. Then next few days a contractor came and "painted over the mold" and still on sale. I have seen several of these types of scenerios. My question is, Don't the banks tihink they might end up with a lawsuit for health issues cased by mold? They don't want to negociate the price for the mold clean up. I am not going to buy the house but I feel bad for anyone else that might consider it.

 

[libertytyranny]

I have seen numerous REO's and the one thing that I have noticed is the mold issue. One house I saw in Leonardtown since 2004, this house has been on sale by the builder, then foreclosed now the bank is trying to sell it. In 2005 it had slight mold issues but were fixed then since then the house is vacant and this time I went with the realtor to see it and there was mold. Then next few days a contractor came and "painted over the mold" and still on sale. I have seen several of these types of scenerios. My question is, Don't the banks tihink they might end up with a lawsuit for health issues cased by mold? They don't want to negociate the price for the mold clean up. I am not going to buy the house but I feel bad for anyone else that might consider it.

The banks sell "as is" they make you sign all kinds of addendums to that effect. You should always have a thourough inspection including specefic mold tests.

Also..all mold is not "black mold" Some of it is just surface mold and will not harm your health. You should remove it because it is unisghtly and can cause damage if the source of the moisture isn't controlled...but it is a misnomer than any mold will harm your health.

 

[punjabigyrl]

Liberty, I do know you have to inspect the property and that, the banks make you sign all sorts of addendums etc. However, my question is the bank knows there is a mold problem and they just paint over so they can sell the property that's the problem.

 

[smilin]

Liberty, I do know you have to inspect the property and that, the banks make you sign all sorts of addendums etc. However, my question is the bank knows there is a mold problem and they just paint over so they can sell the property that's the problem.

Interesting question. I have been in and out of probably at least a hundred REOs in the past year. I also have picked up an allergy to mold to the point I won't go into homes which smell musty or moldy.
I asked the lawyer who represents the MAR about the liability. His basic point was: If it is disclosed and acknowledged by the buyer that they "may" be buying a home with mold, then there is no liability as the problem was disclosed. Not to mention the 'as is' addendum which is a part of every bank contract I've seen.
Interestingly enough all homes are sold 'as is' until addendums are added to include various material facts or defects.