Many home buyers are looking for 'smoking hot' deals these days as they bravely navigate through their local inventory of distressed properties, including short sales and home foreclosures.
Popular home improvement and renovation shows on HGTV and the DIY Network make all the rehab work seem so fun, quick, and painless. But are some of these distressed properties really a bargain for home shoppers? Or are they simply a money pit in disguise?
Home foreclosures with mold infestation can be of particular concern, especially ones that have been vacant for an extended period of time. While most mold issues can be safely eradicated through work performed yourself or using the services of a professional mold remediation expert, there are a few basic facts to consider before moving forward with your home foreclosure purchase:
- Mold is Everywhere! - Nearly every home has some degree of mold (Have you checked your bread cupboard lately?) Don't completely freak out if you discover mold issues. They are more common than you think.
- Complete Home Inspection - Whenever buying a home, always contract with a licensed professional home inspector to perform a thorough home inspection. This is some of the wisest money you will ever spend in the process. Most inspectors use moisture detectors and can flag potential mold issues. If a mold issue becomes apparent, they will usually prescribe an additional inspection by someone who specializes in mold abatement/removal.
- What is the Nature and Extent of the Mold? - There are literally thousands of different variations of mold. Most types of mold don't present a significant health issue and can be eradicated without much difficulty. If the mold is isolated to a small area, simple clean up with detergent and water, followed by an application of diluted bleach will resolve the issue. If the mold infestation is more wide spread, you may want to refer the work out. Toxic molds, like Black Mold, can pose potential health risks, and should only be handled by a professional mold removal company.
- FHA 203K Rehab Loan - If the mold issue is extensive and there are other renovation issues you want to address, you may want to consider financing the property using an FHA 203K Rehab Loan. For qualified Buyers, any professional mold remediation or removal services for your home foreclosure purchase can be paid for through your FHA 203K Rehab Loan.
Learn more about the 203k option and how it could help you if you're considering buying home foreclosures. Download "Ultimate Guide to Renovation Loans" at the button below.