Hello CD Brown,
For most loans, mold must be remediated before the lender will approve financing on the home. Mold remediation can be costly and sometimes the cost to remediate would be over and above the value of the home. Call a certified mold remediation company and find out what they would cost to estimate the damage.
Trying to sell a property with severe mold would be difficult as anyone coming in with government financing such as FHA, VA or USDA will not be able to qualify for the loan until the mold remediation has been completed...thus, this limits the bidders on your property to those with Conventional financing that does not require mold remediation to be completed or cash purchasers.
Renovation loans, such as the FHA 203k allow for mold remediation to be included in the new purchaser's financing, however, if the expense of repairing the property is greater than the value of the home after improvements, the loan will not go through. Many loans are killed because the damage to the property is so great that the cost to improve exceeds the marketable value of the home.
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
cell 202 573-6035
> MLO# 194172 FIMC NMLS# 2289