Lenders have had a rough time trying to establish value after watching market values evaporate over the past three years. The last thing lenders want to see is a property taken back, especially one that requires major remediation before it can be resold.
New buyers do not need the added risk of living in a home that requires major repairs to be healthy, which impacts their ability to earn a living and pay their mortgage. The time to avoid this problem is before the purchase is completed.
Most sales contracts allow a due diligence period before binding the participants. During this period, the prospective owner should have assured themselves that the home is safe, secure and healthy for them to live in. Often we are called during this period to take samples and make sure that the indoor air does not contain mold spores or other particulate at levels that could adversely impact their health.
If this step is not taken, the next opportunity for the buyer and lender alike is the requirements imposed by the lender. If the prospective owner has not checked out the indoor air quality, consider having them do so as a condition of the loan. Their ability to enjoy the purchase and ultimately pay for it depends in part on the health of the occupants.
If the home sat without the HVAC systems operating, as most foreclosures have, it is especially important to have the home checked for mold. Of those homes that we inspected last year, the average spore count in foreclosed homes averaged in excess of fifty thousand spores per cubic meter, a level that can be expensive to remediate andwill impact the health of most people.
If the home spore count is elevated, we can provide guidance to improve the air quality and maintain it at healthier levels. This removes one layer of risk for a lender at comparatively little cost.