Home Buying in Columbia>Question Details

Maja, Home Buyer in Columbia, SC

We found house which is in ownership of bank and listed 365.900 .It is foreclosure and it has mold,

Asked by Maja, Columbia, SC Sun Feb 17, 2008

structural beams are rotted and it has a lot of work to be done. How can I make the bank to sell me the house for 200 000 so I can make updates with the rest of 200 000? I really appreciate the answer.
Thank you so much,

Maja

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Answers

7
Hi Maja,

My advice to you is stay away from a property that is plagued by mold. Mold is very difficult to get rid off and it can affect your health as well as those who spend any prolonged time in the property. You should definitely talk to a mold inspector and ask them the probability that the home will be mold free. Keep in mind that you will never get rid of 100% of the mold but you should first get the assurance that the place is livable health wise. I work in Sarasota Florida and have seen properties with mold and they had to be entirely gutted because mold has gone all over the place, i.e. inside the walls, inside the air ducts,... I am sure you can find another foreclosure home that is not affected by this. My personal advice is to walk away from such a deal. I would not put my health at risk.
3 votes Thank Flag Link Sun Feb 17, 2008
I would definitely stay away from this one. There is a home on the river here in Fort Myers, Florida that was taken down 2 wks ago because of mold. After 2004, Hurricane Charlie - this home was repaired and given a CO. This is a seasonal home, lived in from Jan - April - Every year since the hurricane, the wife of owner became ill while in Florida. This year, they said we're taking it down. Evidently, she had become ill because of MOLD.

There are so many homes for sale, just keep looking till you find another one. - Good Luck
0 votes Thank Flag Link Wed Mar 12, 2008
Maja,

Do you have any idea what the value of the home is after repairs? Is it worth spending $200,00-$300,000 in repairs? You need someone with mold remediation experience to check the home out to see if the problem can be eliminated. If it can not, you certainly do not want to spend any time or money on that property.
0 votes Thank Flag Link Sun Feb 17, 2008
Maja you were doing great until the part about the estimates not being in writing.

Mr. Banker needs a paper trail. Pretend that you are explaining to your boss, why you sold a 352K home for 200K
I would suggest THREE estimates in writing, However I truly believe the bank will slowly lower the price over time, 5% every two weeks, for 16 weeks before they whack it out, at such a discount.

Keep an eye on it, the bank may send it to an REO auction?, or sell it out as a package with some other REO`s that do not have as many problems.

Good Luck
0 votes Thank Flag Link Sun Feb 17, 2008
Mr.P, Other/Just Looking in Arizona
MVP'08
This is Maja and I am trying to provide more information.

The house is on the market since July of 2007. The house has been reduced twice and currently is on the market for $352,000.00.

The bank already knows the house has mold. They say: "All offers must have pre loan approval, financial info sheet and special bank addendum required. Needs substantial renovations. All offers must have acknowledgement by purchaser of presence of mold. Bring Offers..."

We have brought 3 contractors and told us it would cost $200,000 to $300,000 thousand to fix although we did not get it in writing.

Any thoughts?
0 votes Thank Flag Link Sun Feb 17, 2008
Hi Maja,

Your best approach with the bank would be to try to show that the home needs $165,900 in repairs. Has the home been on the market for a long time? Has it been shown numerous times and reduced in lising price at all?

Even with mold problems and rotten beams it would be almost impossible to get the bank to accept the price reduction you are asking for without evidence that it will cost that much to bring it to market value.

Good luck!
0 votes Thank Flag Link Sun Feb 17, 2008
For this example I will play Mr. Banker,

Maja: Mr Banker, your home needs 200K in repairs, therefore I will only give you 200K for the Home. Deal?

Mr. Banker: The current offered price reflects the need for repairs.........Next!

You are asking the Bank to discount the home 45%!!!!!!

You are going to have to wait a long time for the Bank to reduce the price 45%

Mr. Banker:
Who, says it has MOLD? How do you know? Did you have it tested?
Who says the structural beams are rotted? did you have an inspection?
A lot of work to be done? Some Mold and a few beams, OK I will give you 50K, where`s the other 150K?

"How can I make the bank to sell me the house for 200K"
You may have to use force.

Good Luck
0 votes Thank Flag Link Sun Feb 17, 2008
Mr.P, Other/Just Looking in Arizona
MVP'08
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