NJ Foreclosure Homes Often Have Mold

The instances of New Jersey home foreclosures and mold keeps growing. And the recent downturn in the real estate market is partially to blame. New Jersey (along with the rest of the country) has experienced a growing number of vacant and/or abandoned homes that are now owned by the banks – and these house inevitably end up with mold.  As for the banks, it seems like the mentality is “out of sight, out of mind.” Since they can’t see these decaying properties, they don’t pose a problem.

“Can’t see it from my house”  was a comment I heard while speaking at a local title company recently. And although it triggered some laughter throughout the office, the reality of this comment is disheartening.

Last week I received a call from a title company that needed a mold remediation on a NJ property that had been vacant for only 6 months. The girl on the phone said “it can’t be that bad after only 6 months… can it?” Well, it was worse than they could have ever imagined. When they got my initial report, the office manager contacted me and was blown away by the pictures and description of what I found.  I told her that under ideal conditions, mold can start to grow within 24 hours. What they didn’t realize was that by killing the electric to the home, the sump pump would no longer operate. What followed was a repeatedly flooded basement and a ton of mold throughout the house. It was an expensive mistake.

Mold in foreclosed homes is not a problem that is specific to New Jersey. Homes are becoming infested with serious Mold problems every where in the country. Water leaks, flooding, or sewage backup in vacant properties are serious problems that usually go undetected until an inspection.  With no one in the house to notice or correct the problem, the health of the house is in jeopardy. Poor ventilation and high humidity are two easily remedied conditions that can lead to mold growth and these conditions are usually present in vacant homes.

Realtors know that even the slightest suspicion of mold can scare away potential buyers. Since many buyers are not familiar with Mold and the dangers that are associated with mold contamination, they tend to react with extreme caution. As you real estate agent know all too well, mold can be an immediate deal killer.

If by chance the house is sold and there is hidden mold inside, the price may be right at the time of the buy, but can cost thousands of dollars to remediate and remove the mold and repair any structural damage it may have caused. Or if mold is discovered, it then can drive the price of the home down because of the cost of mold removal.

Lawsuits brought by the buyers after they discover mold was not disclosed at the time of sale are on the rise. They usually take time and money to come to settlement and legal expenses can be costly. This is just another reason to get it inspected.

Many home buyers choose to have a home and termite inspection prior to closing. But since most foreclosed homes are sold “as is”, it’s common for these important steps to be skipped. In non-foreclosure situations, I usually get involved after a home inspector discovers mold during his or her inspection. I always tell realtors and investors to consider a home and mold inspection a small investment that can (and often does) save them money in the end. Having the house tested for Mold is money well spent, especially when you and your family’s health is at stake.  

Choose wisely when shopping for a foreclosed home in New Jersey. Consult a mold inspector and ask what to look for. A good mold inspector that actually cares will talk to you and give you advice on some things you can look for during your initial walk through. Once your walk-though is complete, set up your inspections. With mold, contaminations can be hidden behind walls or in crawlspaces where homeowners generally don’t check. A simple air test is all it would take to discover a mold problem that was not visible to the naked eye.

For more information on doing your own initial mold walk-through, contact MasterTech and ask for me personally (Tom) 856-220-5334 or email me at tom@mastertechmold.com.