Black mold is a great negotiating tactic when dealing with a bank foreclosure short sale
Black mold is a great negotiating tactic when dealing with a bank foreclosure short sale. The potential for liability is EXTREMELY high if black mold is found present in a property. Mold is a serious issue and it will mean a HUGE discount from the bank if it is found in a property that you are working on for a short sale, or foreclosure. If you believe that banks do not want to own foreclosures, then you also have to realize that the properties with mold are on the short list that the bank does not want. Often the potential liability is more than a bank wants to take on. Mold can destroy a property, the very nature of mold is to decompose matter. Over a period of time, mold will eat anything it comes in contact with. The loss in value to the home if it has mold is determined by the extent of the mold infestation. There have been homes where the mold was so wide spread the entire home had to be destroyed and rebuilt. In most cases however, the mold can be removed by a professional mold remediation company.
When you work a short sale, or foreclosure one of the first things you should look for is evidence of mold. When you do, call in a mold remediation specialist who will perform a complete inspection so you can submit it to the bank as a part of your sale package. This report alone can be 10-20 pages. Once you get a mold remediation quote back you will see why this is such a big deal. A mold issue can cost upwards of $8,000.00 – $10,000.00 to remediate. To make matters worse, many home insurance companies are denying mold claims. The bank will be much more willing to negotiate the price down, and much more motivated to get the deal done. Often the hardest part of the sale is getting the banks approval, with a mold infestation problem that is only going to get worse with procrastination, approval for the sale will come much sooner.