CarrieB: House is unlivable and can’t afford to make required repairs?
A friend of mine has owned a 2 bedroom 1 bath home in Pennsylvania for about 8 years. They owe 140,000 on the house right now and are able to make the mortgage. However, they gutted the house and found black mold and after more inspection found the foundation and Sill of the house to be completely shot. They had the house on the market before they found all these issues and they were unable to sell. Her husband who is a contractor stated it would cost them way too much to repair the damage to the home with out going completely in the whole financially. She is at her wits end and is contemplating walking away from the house and renting. Has anyone had this experience? Is there anyway the home could be deemed unlivable by a County Inspector? If it is condemned/deemed unlivable how would a mortgage company handle this? Is there any way to walk away from this house with out having huge repercussions? They can not sell the house at this price, they can not refinance because of the real estate market. Have the Foreclosure policies changed to help people who are in this type of situation?
Thank you to “Fay” for having such an intelligent answer to my question. Yes they have heard of Bleach. They did try that, the mold was inside the walls and rotten under the Sill Plate, def.-wood member that rests on foundation wall and is attached to it with anchor bolts. Floor joists and header are attached to it. This rotted, foundation is crap now
. The home passed inspection when it was bought. Until the sheet rock was removed the black mold was not noticeable (obviously) . They already contacted the Ins. Co.-NOT COVERED (mold isn’t covered) Fed HUD for grants-NO GRANTS & their Mortgage Co. -COULD NOT HELP THEM. I asked a serious question and hoped to get knowledgeable replies, its obvious you know nothing, so please do not comment. Leave your ridiculous comments to yourself. Better Yet why don’t you open a cleaning business since you THINK you know so much. BTW- Mold can crow in the cleanest of homes, it just needs moisture.
Their house will not appraise for what they owe on it. They Refi’ed a few years ago and leveraged the house. Nothing is selling around here. Plus, since they completely gutted the house there are no rooms, only a bathroom an bare studded walls. They had planned on remodeling the house but now they are in a sticky situation with the rot and mold. They can handle the mold situation but the cost to repair the Sill, and foundation would be too costly
Answers and Views:
Answer by James B
They’re out of luck – unless they had house insurance, and it’s a covered repair?
Why cant they refinance? Rates are at a low rate. Is there house worth less then what they owe? Also the stimulus is for reasons like this so they need to look it to a second mortgage or refinance. Also if they walk away they will be foreclosed on. I have been thru this already last year but my house was in wonderful condition, and it sold for $ 120,000 and I owed $ 159,000 and appraised for $ 250,000 before the market went bad.
They may end up still having to pay some of the mortgage even after they sell because they may not get enough for the house to clear you from owing.
They really need to look into all their options first.
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