FORECLOSING ON OUR MOLDY HOUSE!

[Guest guest]

After a year and a half of trying to get the builder to repair our

brand new home with water damage and mold my husband and I are

considering walking away from our beautiful home. The builder handed

the problem to his builders insurance company, they then informed us

that they " have no mold coverage " . Parts of the damage may be covered

by the water damage part of the policy but the mold part which is the

majority of our problem is not covered. My husband and I are inclined

to take the small amount of money given to us by the insurance and just

foreclose. If we take the builder to court and sue we will spend

thousands on an attorney fees and take the risk of only coming away

with a partial win. Shouldn't we just take the settelement and walk,

we could even buy something else before we stopped making the payments

on this house. What is your advice??

[Guest guest]

It depends on the specifics of your situation.  Have you discussed this with

your bank?  Every bank has different procedures.  Maybe you could do a Deed in

Lieu instead of foreclosure.

[] FORECLOSING ON OUR MOLDY HOUSE!

After a year and a half of trying to get the builder to repair our

brand new home with water damage and mold my husband and I are

considering walking away from our beautiful home. The builder handed

the problem to his builders insurance company, they then informed us

that they " have no mold coverage " . Parts of the damage may be covered

by the water damage part of the policy but the mold part which is the

majority of our problem is not covered. My husband and I are inclined

to take the small amount of money given to us by the insurance and just

foreclose. If we take the builder to court and sue we will spend

thousands on an attorney fees and take the risk of only coming away

with a partial win. Shouldn't we just take the settelement and walk,

we could even buy something else before we stopped making the payments

on this house. What is your advice??

[Guest guest]

I am in a similar situation. But, my bank sent an appraiser to my home and the

house

appraised in the negative because it is an envriomental hazard. The bank

doesn't want a

house filled with mold. The cost to repair or tear down the house would be the

bank's

responsibility.

As for the builders insurance policy, it may have a mold exclusion, however,

there is no

water intrusion exclusion if it is a builders defect. Without water intrusion,

there would be

mold.

I don't know what your specifics are, but my builder put no moisture barrier on

the

outside of part of my house. I have been in litigation for a couple of years.

I am paying

for my attorney, but have discovered many will take mold cases on contingency.

What about your homeowners policy? Have you filed a claim with them? Most

homeowners policies have a certain limit on mold, something like 10,000.00 or

so.

However, (and most agents don't even know this), the mold limit is for the

removal of the

moldy products. The rebuilding and all your personal belongs are still fully

covered. Also,

the water intrusion is another way to file a claim.

[Guest guest]

there sure is a lack of lawyers out there who have the knowledge and

guts to do these cases and file the multiple parties involved on the

lawsuit. It seems many have gotten lazy and only wint cases that are

handed to them on a silver platter. we need a website set up for

lawyers to get all the onfo. they need to properly do these cases.

most around here anyway, dont have the first clue of what to do or

the experts they need to contact. anyone functioning well enough to

set up a web site? like " how to do a toxic mold case " " list of

experts " " good lawyers bad lawyers " " insurance liablitys " " the

meaning of NATURAL HAZARD " ect.

[Guest guest]

If you talk to a insurance lawyer DONT give hin any info. until you

find out which insurance co.'s he has alliences with and which ones

he doesn't. believe me, there are those who will take your case to

ruin it because they have a allience with your insurance co.

you may find some info. under these searches

" suing the insurance company on toxic mold cases "

" statue of limitations on toxic mold cases "

>

> I am in a similar situation. But, my bank sent an appraiser to my

home and the house

> appraised in the negative because it is an envriomental hazard.

The bank doesn't want a

> house filled with mold. The cost to repair or tear down the house

would be the bank's

> responsibility.

>

> As for the builders insurance policy, it may have a mold exclusion,

however, there is no

> water intrusion exclusion if it is a builders defect. Without

water intrusion, there would be

> mold.

>

> I don't know what your specifics are, but my builder put no

moisture barrier on the

> outside of part of my house. I have been in litigation for a

couple of years. I am paying

> for my attorney, but have discovered many will take mold cases on

contingency.

>

> What about your homeowners policy? Have you filed a claim with

them? Most

> homeowners policies have a certain limit on mold, something like

10,000.00 or so.

> However, (and most agents don't even know this), the mold limit is

for the removal of the

> moldy products. The rebuilding and all your personal belongs are

still fully covered. Also,

> the water intrusion is another way to file a claim.

>

[Guest guest]

We haven't discussed it with the bank yet, in fear that they will

brand us a " mold house " and then we'd never be able to sell if we

needed to. What is a deed in Lieu?

--- In , <brianc8452@...>

wrote:

>

> It depends on the specifics of your situation.  Have you discussed

this with your bank?  Every bank has different procedures.  Maybe you

could do a Deed in Lieu instead of foreclosure.

>

>

[Guest guest]

My homeowners has 5k in coverage and my agent said that it would not

cover any of our belongings and such, so hardly worth it to file.

[Guest guest]

Here's the Wikipedia definition for " Deed in Lieu of Foreclosure "

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e.

the borrower) conveys all interest in a real property to the mortgagee (i.e. the

lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers several advantages to both the borrower

and the lender. The principal advantage to the borrower is that it immediately

releases him/her from most or all of the personal indebtedness associated with

the defaulted loan. The borrower also avoids the public notoriety of a

foreclosure proceeding and may receive more generous terms than he/she would in

a formal foreclosure. Advantages to a lender include a reduction in the time and

cost of a repossession, and additional advantages if the borrower subsequently

files for bankruptcy.

In order to be considered a deed in lieu of foreclosure, the indebtedness must

be secured by the real estate being transferred. Both sides must enter into the

transaction voluntarily and in good faith. The settlement agreement must have

total consideration that is at least equal to the fair market value of the

property being conveyed. Generally, the lender will not proceed with a deed in

lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the

current fair market value of the property.

Because of the requirement that the instrument be voluntary, lenders will often

not act upon a deed in lieu of foreclosure unless they receive a written offer

of such a conveyance from the borrower that specifically states that the offer

to enter into negotiations is being made voluntarily. This will enact the parol

evidence rule and protect the lender from a possible subsequent claim that the

lender acted in bad faith or pressured the borrower into the settlement. Both

sides may then proceed with settlement negotiations.

Neither the borrower nor the lender is obliged to proceed with the deed in lieu

of foreclosure until a final agreement is reached.

[] Re: FORECLOSING ON OUR MOLDY HOUSE!

We haven't discussed it with the bank yet, in fear that they will

brand us a " mold house " and then we'd never be able to sell if we

needed to. What is a deed in Lieu?

--- In , <brianc8452@ ...>

wrote:

>

> It depends on the specifics of your situation.  Have you discussed

this with your bank?  Every bank has different procedures.  Maybe you

could do a Deed in Lieu instead of foreclosure.

>

>

[Guest guest]

Depending on where you live, there is disclosure when you sell a house. You

know there is mold in the house so you must disclose it to any buyer.

Furthermore, I can't believe anyone would sell a house to an unsuspeted buyer

when the house has made you sick!! That is WRONG. The same sickness could

happen to the new owners.

I won't even donate furniture out of my house to a thrift shop because it would

kill me to think that some small child would get sick from the spores, or better

yet a small could die from them.

You should tell your house about the mold problem and anyone who would

prospectively purchase the house.

After you have been through this all, are you not concerned that you, yourself

could purchase another house which the previous owner did not disclose mold to

you and you would get sick all over again.

That is a HUGE pet peeve of mine, We do not need to be passing our problems on

to someone else to live with the hell mold sickness causes,

[Guest guest]

Well stated! Would like to add that not disclosing is a good way to get

yourself named as a defendant in litigation. That is exactly why many, who are

on this board, are in the position they are - because someone tried to run

from their problems by basically lying thru silence and putting their problems

off on someone else.

Sharon K

In a message dated 7/2/2008 5:41:46 A.M. Pacific Daylight Time,

semco_semco_semco@... writes:

Depending on where you live, there is disclosure when you sell a house. You

know there is mold in the house so you must disclose it to any buyer.

[Guest guest]

Hello,

We vacated our home in May, 2006 because of mold that resulted

from multiple construction defects and water intrusion. Our builder

turned the matter over to their legal department. We got a highly

reputable mold attorney and moved into a rental. We naively hoped

that the builder would buy back the property and cover our property

loss, moving expenses, and medical bills. After a year, we could no

longer afford to continue making payments and the mortgage company

would not offer a forbearance, so we lost our home to foreclosure.

We cleared out and dumped everything from the house. Walls were left

open by home inspectors and we left copies of the environmental

testing reports on the kitchen counter. Unbelieveably, the home is

listed for sale and the real estate agent claimed to have no

knowledge about the mold and construction defects! Apparently homes

in foreclosure are sold " as is " and there is no disclosure!

The litigation process has dragged on and on and after spending

over $25K in legal fees, we have finally run out of money. Now our

attorney is threatening to cease all work on our case.

We are coming to the sad realization that we cannot afford to

buy justice. In fact, we have been re-victimized by the civil court

system that we thought would help us out! We have lost our life

savings and on top of this, we are very ill as a result of the

exposure and all the stress.

Hindsight being 20/20, I think that we would be better off if we

had walked away. It is tragic that this is happening to so many good

hearted, hard working people, and there are no protections or

safeguards in place. It amazes me that in most states there

are " lemon laws " to protect consumers from faulty automobiles. Yet

there is so little being done to help safeguard the consumer when we

make the biggest and most important purchase of our lives: our

homes. And the average person cannot afford our civil court system

and there are no timelines in place to prevent folks from

being " dragged " through court. The big insurance companies have deep

pockets and play this to their advantage, making litigation a

vs Goliath endeavor.

This experience has been a rude awakening to the dark side of

our corrupt, capitalistic culture, in which " he who has the most

money wins. " We are powerless to confront this evil system as

individuals, and that is why we must all make our stories be heard

collectively.

I continue to pray that some good will come forth from this

nightmare (Romans 8:28). It breaks my heart everytime I meet or hear

from yet another victim. When and how will this finally stop??

Patti

Folsom, CA

[Guest guest]

Amen to that. I could not agree more. problem is that there are not enough

people who feel this way...

[Guest guest]

Thanks for sharing that, as I tear up. It is such a crying shame and at times

the anger is so built up with nowhere to release it. This story leaves a worse

taste in my mouth than toxins ever will.  So sad.

 

Chris...

From: pamortonrn <mortongang@...>

Subject: [] Re: FORECLOSING ON OUR MOLDY HOUSE!

Date: Wednesday, July 2, 2008, 2:26 PM

Hello,

We vacated our home in May, 2006 because of mold that resulted

from multiple construction defects and water intrusion. Our builder

turned the matter over to their legal department. We got a highly

reputable mold attorney and moved into a rental. We naively hoped

that the builder would buy back the property and cover our property

loss, moving expenses, and medical bills. After a year, we could no

longer afford to continue making payments and the mortgage company

would not offer a forbearance, so we lost our home to foreclosure.

We cleared out and dumped everything from the house. Walls were left

open by home inspectors and we left copies of the environmental

testing reports on the kitchen counter. Unbelieveably, the home is

listed for sale and the real estate agent claimed to have no

knowledge about the mold and construction defects! Apparently homes

in foreclosure are sold " as is " and there is no disclosure!

The litigation process has dragged on and on and after spending

over $25K in legal fees, we have finally run out of money. Now our

attorney is threatening to cease all work on our case.

We are coming to the sad realization that we cannot afford to

buy justice. In fact, we have been re-victimized by the civil court

system that we thought would help us out! We have lost our life

savings and on top of this, we are very ill as a result of the

exposure and all the stress.

Hindsight being 20/20, I think that we would be better off if we

had walked away. It is tragic that this is happening to so many good

hearted, hard working people, and there are no protections or

safeguards in place. It amazes me that in most states there

are " lemon laws " to protect consumers from faulty automobiles. Yet

there is so little being done to help safeguard the consumer when we

make the biggest and most important purchase of our lives: our

homes. And the average person cannot afford our civil court system

and there are no timelines in place to prevent folks from

being " dragged " through court. The big insurance companies have deep

pockets and play this to their advantage, making litigation a

vs Goliath endeavor.

This experience has been a rude awakening to the dark side of

our corrupt, capitalistic culture, in which " he who has the most

money wins. " We are powerless to confront this evil system as

individuals, and that is why we must all make our stories be heard

collectively.

I continue to pray that some good will come forth from this

nightmare (Romans 8:28). It breaks my heart everytime I meet or hear

from yet another victim. When and how will this finally stop??

Patti

Folsom, CA

[Guest guest]

I am way past you on this. I have several attorneys at this point.

[Guest guest]

I live in Florida and there are only two ways to get around disclosure. One is

a sold as if

foreclosure. It is your responsibiity to inspect the property and you sign

papers holding

the bank harmless. The other way is in an auction. Same basic practice. You

purchase as

is. After your house is infested with mold and if it is not foreclosed on, the

only real way

to sell the house is at auction, but they are rip offs. The fees the auction

companies

charge the seller are absurb.

[Guest guest]

We would definetly disclose the mold when we sell. Legally we have

to. Most people don't understand mold and don't think its a big

deal, whenever we explain to people what has happened to our house

with mold they don't understand why we moved out. I love the

saying " mold is everywhere, we breathe it everyday " . Most homebuyers

are ignorant when it comes to mold.

We are hoping to get a clean air test that we can use when we sell

the house, after all of our remediation is done. That hasn't even

started yet, we are still waiting on the builder's insurance company

to make us an offer. Then we will have to have the work done on the

house.

Cassie

[Guest guest]

Patti-

Its going to cost about 40k to fix our house. If the builders

insurance tells us they will pay 20k for the repairs, should we just

take it? Also, my homeowners insurance told me that they would pay

some on the claim as well since it is a result of water damage. Then

they would look to the bulider for reimbursement.

Or scenario number 2 would be.....take the money and walk away from

the house. We would either do bankruptcy or a foreclosure, a short

sale wouldn't be a possiblity because the house would be difficult to

sell in the condition that its in. Whats your advice. I understand

you are not an attorney and this is just your " advice " anything helps

from someone who is on the other side of this now. Thanks so much!

Cassie

[Guest guest]

Cassie, I cannot stress enough how happy I am so happy to her people say that

despite the laws They would do the right thing. By your post it sounds like you

would do what I would and sabotoge the whole sale by sitting people down and

telling them how wrong they are and what could be the concequences. LOL  It is

funny sometimes when I am talking to people about this they seem so concerned

and all, but when it comes to them personally they brush it off and think it

does not pertain to them.

Honesty will always pay off in the end though.

 

Good luck.

Chris... 

From: blythecassie <blythecassie@...>

Subject: [] Re: FORECLOSING ON OUR MOLDY HOUSE!

Date: Friday, July 4, 2008, 9:07 PM

We would definetly disclose the mold when we sell. Legally we have

to. Most people don't understand mold and don't think its a big

deal, whenever we explain to people what has happened to our house

with mold they don't understand why we moved out. I love the

saying " mold is everywhere, we breathe it everyday " . Most homebuyers

are ignorant when it comes to mold.

We are hoping to get a clean air test that we can use when we sell

the house, after all of our remediation is done. That hasn't even

started yet, we are still waiting on the builder's insurance company

to make us an offer. Then we will have to have the work done on the

house.

Cassie

[Guest guest]

WOW, decisions, decisions. I know the question was not dirrected at me but Ill

comment anyway. " I dont know "

Tuff one and if the market was not like it is it might be easier to make a

decision like that. If you were here and it was me, there are so many houses for

sale i would take the money and move on, but then I would feel bad knowing

eventually someone else would live there but then if you spend the money to fix

it how much will that hurt you. Gosh I hope someone with more knowledge tan I

helps you in this.

 

Chris...