Category Archives: Real Estate-Purchases

Mold is in the Air

Real Estate-Purchases, Real Estate-Sales

Mold cases are increasing. More and more, home inspectors find mold in attics during the inspection.

In the last year, I have had about 10 mold cases: In onecase, the Buyer backed out of the contract. A few days later the Buyer reconsidered and signed a new contract, for $5,000 less than the last one, but accepting the property “as is.” In another case, a mold remediator was called in, the seller cleaned up the mold for about $2500 and the Buyer closed. The cost of remediating the mold is between $1500 and $8000, I have found.

If the inspector finds mold, a mold remediation company is called in to examine it, clean it up and stop the leakage that caused it in the first place. Generally, home inspectors will not do mold remediation; they just indentify a mold problem.

If you are thinking of selling a home it may be wise to inspect your attic for mold before it goes on the market. Click here for a good mold primer.

What to Do if Your Mortgage Lender Bails Out on You

Real Estate-Purchases

Recently, as interest rates rose and the number of files on their desks exploded to record levels, some mortgage companies bailed out on clients and failed to close. In two cases I was involved in (both of which are new construction) the mortgage companies literally “forgot” about the client. The loans were not ready to close because no one paid attention to the file for months. The other problem is that some lenders blow the “lock-in” period. The client is left with a lame promise that the mortgage company will do a “free refinance” later to cure the problem.

How can you prevent this? Pick a reputable lender in the first instance; not one from the internet or your brother-in-law who thought he would try out mortgage brokerage. Stay in touch with the lender. If all else fails, file a complaint with the office of banks and real estate. Here is the form to file the complaint:

http://www.bre.state.il.us/CONSUMER/FORMS/c-Form41.pdf

It rarely pays to file a lawsuit against the lender. Attorneys fees are cost prohibitive and your damages are hard to prove.