RealtyTrac reported that over two million properties in the United States went into foreclosure in 2010. California headed the pack with over 67,000 foreclosed properties, then Florida with over 21,000, Arizona over 15,000, and Texas over 14,000. Vermont was on the bottom of the list, with only 21 foreclosed properties.
Perhaps you are considering purchasing a foreclosed property, which can seem like a financial opportunity to a prospective buyer. Foreclosed properties, however, can present serious problems, many of which can have a negative impact on your financial stability and even your health.
Leaks
The electricity, water, and heat and/or air conditioning are often shut off in foreclosed properties. If the pipes weren't completely drained first, there could be concealed damage to the pipes due to freezing. Then when the water is turned back on, a minor leak in a wall or ceiling cavity can develop into a major mold problem.
Vacated properties can also have visible leaks and flooding, but with no one living there, these problems may not be detected in time to prevent widespread corrosion, decay and mold growth.
Basement Mold
There can be a lot of surface mold in a basement if the relative humidity (RH) was over 80% for any extended periods of time. How do you know if a basement had elevated RH levels? If the home was not air conditioned or the basement was not dehumidified during the summer, you can assume that there is a basement mold problem, particularly if the basement is finished.
If the basement was ever flooded, there could be mold on the foundation walls, on wooden built-ins like workbenches and shelves, behind finished walls, under a raised floor, in basement carpeting, and even inside a furnace or air conditioning unit if the bottom was ever wet.
Mold remediation can be very expensive. Sometimes it can be less expensive to demolish a finished basement than to try to remediate extensive hidden and surface mold growth.
The Mechanical System
If the property has hot air heat and/or central air conditioning, there could be mold growth or pet dander in the ducts as well as on the blower, in the blower cabinet and on the cooling coils, if present. If there are stains to suggest that the fibrous lining material has been wet, the material might contain microbial growth and must be replaced or sealed.
If the property is heated by radiators or baseboard convectors, pet dander, mold spores and mites can be on these surfaces, which should be HEPA vacuumed (using a vacuum with high efficiency particulate arrestance filtration). Use a 36-inch vacuum crevice tool (available on line) to get to hard-to-reach spots on the radiators. You must remove the front cover from a baseboard heating convector to vacuum the fins. Damp wipe and dry the cover before putting it back in place.
"If the dust between the fins cannot be removed with a HEPA vacuum," wrote indoor air quality professional and building consultant Jeffrey C. May in his book Jeff May's Health Home Tips (page 23), "use steam from a steam vapor machine to clean the fins." Put rags or old towels under the convectors to catch the grime and protect the flooring. Follow manufacturer's directions for safe use of this equipment.
Make it a practice to HEPA vacuum radiator surfaces or the covers of baseboard heating convectors before the start of every heating season.
Exposed Fiberglass Insulation
Exposed fiberglass insulation in a basement or crawl space captures biodegradable dust that can become moldy. "In unconditioned crawl spaces," May said, "every sample of dust from exposed fiberglass ceiling insulation that I looked at was contaminated with mold growth." Exposed fiberglass insulation also attracts mice, which like to nest in the stuff.
Pests
When humans vacate, pests may move in and cause unpleasant smells. Look for rodent activity in the basement, like mouse droppings, rust-colored mouse urine trails, insulation that has been torn down in strips, or bits of seeds and acorns.
Former Human Occupants
People who lose their homes to the bank can understandably be bitter and disappointed. "Foreclosed properties can be particularly problematic," May warned, "because former occupants may be disgruntled and have caused damage to the home's electrical or plumbing system."
Get a Home Inspection
Most people who consider buying a property under foreclosure are looking for a deal, and sometimes they don't have the funds to attack problems that may be present. Don't rush headlong into buying a property that may seem cheap now but that in the end, could be very costly. Hire the best home inspector you can find before committing to the purchase.
Before the inspection occurs, do some research into the history of the property. Check with the local building department regarding permits, and with the fire department regarding fires or a buried oil tank at the site. Talk to neighbors, but keep in mind that neighbors who were friendly with the former owners may be tempted to give you "misinformation."
Give all pertinent information you uncover in your research to your home inspector. If the inspector expresses caution about the property, take heed.
Sources
- "National Real Estate Trends: Foreclosed Homes U.S.," RealtyTrac
Resources
- American Society of Home Inspectors (ASHI), Des Plaines, IL
- Canadian Association of Home and Property Inspectors (CAHPI), Ottawa, ON
- May, Connie L., "Basement Flooding and Mold Problems"
- May, Jeffrey C., "Relative Humidity and Mold" and "Basement Mold and Real Estate Transactions," Suite 101
- National Association of Realtors, Chicago, IL
- "Thinking of Springing for a Foreclosed Home? Check for these 5 Problems First," Popular Mechanics, Oct. 1, 2009
Disclaimer: The information contained in this article is for educational purposes only and should not be used for diagnosis or to guide treatment without the opinion of a health professional. Any reader who is worried about his or her health should contact a doctor for advice.
Connie May - Connie L. May is a Certified Indoor Air Quality Technician (CIAQT) based in New England. She and her husband Jeffrey C. May, a Certified ...
