Short Sale Tip # 9: The Role Of Mold In Obtaining A Big Short Sale Discount

Ever see a really good horror movie? Want to see one? Check out the bill or quote you will receive for black mold remediation.

Black mold is the great equalizer in negotiating a short sale with a lender. The potential for liability is EXTREMELY high if black mold is found to be present in a property.

When we work a short sale, one of the first things we look for is evidence of black mold. When we do, we call in remediation specialists who perform a complete workup for us so we can submit it to the bank as a part of our short sale package.

This report alone can be 10-20 pages. MOLD IS SERIOUS AND CAN IN SOME INSTANCES CAUSE DEATH!

There are some who will tell you that mold is no big deal and mold testing is not necessary. It is interesting to note that those who make such irresponsible statements also disclaim everything they say and require you to sign forms saying they “disclaim” any mold…or even others who warn you to wear a respirator and rubber gloves when cleaning mold. Why? If mold is “no big deal”, why bother signing a disclosure or protecting your lungs and skin from it? The answer is; because mold can be a very big deal and the only way to really know for sure is by proper testing for mold.

The Institute of Medicine’s Damp Indoor Spaces and Health Review concluded (betcha did not even know that such a review panel even existed) that black mold left untreated can cause major problems.

Left to have its way inside a building, damp or moist items such as wood, paper, drywall, and some types of insulation, provide food sources for molds. FOOD???

Yes…it’s alive! It’s alive….!!

If you believe that banks do not want to own properties taken back by foreclosure, then you also have to realize that those properties with active black mold spores rise to the top of those properties the bank does not want. That potential liability is WAY more than a bank wants to take on.

Once you get a mold remediation quote back you will see why this is such a big deal. A small mold issue can cost upwards of $8,000.00 – $10,000.00 to remediate. Imagine if there are mold spores found on a few walls or in the air ducts of a home…the cost to remediate could be prohibitive.

According to the Toxic Black Mold Information Center, “once mold infests the home, it s very expensive to clean up. To make matters worse, many home insurance companies are denying mold claims”. The actual average cost you will pay to a mold remediation specialist, “for one wall that is contaminated, is about $3,000.00″ states Kevin Bristol President of Advance Mold Remediation.

This cost will include a mold inspection by a professional, mold sampling sent into an independent lab to determine what type of mold you have, and removal and cleanup. This cost also includes, “all of the helmets or protective wear that the technicians wear, the machines that they use which are called negative air machines that filter out the dirty air, and all of the chemicals, as well as the encapsulation coating” says Bristol.

As for Property Damage, the very nature of mold is to decompose matter. Over a period of time, mold can destroy anything and everything it comes in contact with.

The loss of value in your home if it has toxic black mold is determined by the extent of the mold. 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 just removing one wall or floor and replaced with new.

In some states, you even need to disclose on the sale of the home that it had toxic black mold at one time. It’s that serious.

Black mold is a serious issue in a home and it could mean a HUGE discount from the bank if it is found in a property that you are working on for a short sale.