NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1515 topics, 14405 posts — Last Post 04/19/14, 01:28PM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10893 topics, 85674 posts — Last Post 04/19/14, 03:01PM

Real Estate Success Stories

396 topics, 6160 posts — Last Post 04/19/14, 02:38PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5941 topics, 46812 posts — Last Post 04/19/14, 02:21PM


643 topics, 5817 posts — Last Post 04/19/14, 09:29AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

654 topics, 6265 posts — Last Post 04/19/14, 10:16AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3683 topics, 29516 posts — Last Post 04/19/14, 03:11PM

Real Estate Guru, Book & Course Reviews and Discussions

1133 topics, 11562 posts — Last Post 04/19/14, 12:17PM

Ask About A Real Estate Company

741 topics, 7321 posts — Last Post 04/19/14, 02:09PM

Real Estate Investing

Real Estate Strategies


5605 topics, 43744 posts — Last Post 04/19/14, 03:13PM

Rehabbing and House Flipping

3334 topics, 31003 posts — Last Post 04/19/14, 01:08PM

Real Estate Development & New Home Construction

553 topics, 4684 posts — Last Post 04/19/14, 12:13PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6678 posts — Last Post 04/19/14, 06:06AM

Rent to Own a.k.a. Lease Purchase, Lease Options

693 topics, 4901 posts — Last Post 04/19/14, 03:06PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1687 topics, 11287 posts — Last Post 04/19/14, 02:42PM

HUD, VA, and Tax Sales

414 topics, 3089 posts — Last Post 04/18/14, 12:05PM


1214 topics, 10576 posts — Last Post 04/19/14, 11:48AM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7205 topics, 70762 posts — Last Post 04/19/14, 02:28PM

Mobile Homes & Mobile Home Park Investing

638 topics, 5141 posts — Last Post 04/19/14, 09:49AM

Investor Basics

Starting Out

7704 topics, 60475 posts — Last Post 04/19/14, 02:47PM

Investor Psychology

431 topics, 6104 posts — Last Post 04/18/14, 06:08PM

General Real Estate Investing

4718 topics, 37208 posts — Last Post 04/19/14, 03:14PM

Real Estate Investor Marketing

1731 topics, 14094 posts — Last Post 04/19/14, 06:39AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1410 topics, 8993 posts — Last Post 04/19/14, 02:45PM

Multi-Family and Apartment Investing

1109 topics, 9232 posts — Last Post 04/19/14, 02:16PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

642 topics, 4897 posts — Last Post 04/19/14, 11:10AM

Business Basics

Goals, Business Plans & Entities

831 topics, 7562 posts — Last Post 04/18/14, 04:25PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2786 topics, 20011 posts — Last Post 04/19/14, 02:14PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2731 posts — Last Post 04/18/14, 04:33PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2833 topics, 19699 posts — Last Post 04/19/14, 11:47AM

Creative Real Estate Financing

1209 topics, 8769 posts — Last Post 04/19/14, 06:24AM

Crowdfunding Real Estate

35 topics, 461 posts — Last Post 04/18/14, 05:17PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1210 topics, 7989 posts — Last Post 04/19/14, 08:04AM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/18/14, 09:39AM


268 topics, 1678 posts — Last Post 04/19/14, 03:38AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1990 topics, 11612 posts — Last Post 04/19/14, 02:11PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM


Real Estate Marketplace

Real Estate Marketplace

15017 topics, 53957 posts — Last Post 04/19/14, 03:13PM

Real Estate Events and Happenings

164 topics, 2514 posts — Last Post 04/19/14, 01:13PM


Off Topic


2905 topics, 32411 posts — Last Post 04/19/14, 08:03AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » REOs » REO mold disclosure

REO mold disclosure

11 posts by 6 users


Real Estate Investor · Spring, Texas

Is this common being that the property is sold " as-is" ? We just submitted an offer and " oh by the way we need you to sign...a mold disclosure/indemnification agreement" .

I am simply wondering if this is customary or a red flag. We realize we are buying the property " as-is" but this will be our first home and our primary residence. I'm hoping this is just a standard disclosure and an inspection will cure my qualms but if not, I'd rather keep the couple hundred dollars :blush: .


Residential Real Estate Broker · St. Louis, Missouri

This is pretty normal for all the REO's I've made offers on. They banks want you to know they are not liable for anything at all. Just another way to cover themselves.

Real Estate Investor · Spring, Texas

Thank you! I just wanted to be sure it was a CYA thing and not a red flag.

1. It sounds like a CYA.

2. If the seller had specific knowledge of mold then they would have to disclose it. Either they are trying to say they just do not know or they are forgetting what they do know.

3. Remember that any REO is being handled by staff and the file is getting passed around. The heat or air conditioning was last turned on months or years ago. The property might not be weather tight. There can be invasions of rodents or other animals. In many communities the home has been broken into or otherwise disturbed. Some folks facing foreclosure will sabotage a home and otherwise do damage. Normally very visible but not always.

Houses take a lot of maintenance as the elements can be very harsh on a house. Any house that has been vacant

The house can be a great deal. The lender has worse than zero knowledge of its true condition in most cases. Depend heavily on your own investigation and maybe, just maybe what inspectors you hire have to say. Then dive in prepared to spend some money correcting issues that you find.

Good luck.

John Corey

Real Estate Investor · Spring, Texas

Thank you John, I appreciate your insights.

The home has been vacant for a few months and is 2 years old so I guess assuming the offer is accepted, the inspection will hopefully reveal if there is indeed a problem or not.

The previous owner did indeed pull up the carpeting from the entire upstairs and took the stove which is presenting an obstacle right now as we were hoping to go FHA. However it's still in much better condition than some of the REO's we've looked at. Hopefully the only damage is that which is visible.

Real Estate Investor · Ohio

It is stand practice in my area for the banks clean up people to remove all carpet to prevent mold. Also, the mold disclosure agreement is normal. Unless you are sitting on a slab, you should be able to see if you have a mold issue.

Originally posted by "TC":
It is stand practice in my area for the banks clean up people to remove all carpet to prevent mold. Also, the mold disclosure agreement is normal. Unless you are sitting on a slab, you should be able to see if you have a mold issue.

Extending this a bit.

Mold is everywhere and it has always been everywhere. No one invented mold recently. What might have changed is two things.

1. Medically we not connect medical issues in specific individuals to exposure to mold. They always had the issues in some part of the population but medical science did not make such a strong link. A different way to think of it is people are overly concerned.

2. Insurance companies got his with large claims from court cases where they lost. Juries can sometimes go overboard. Hence sellers and other parties that might have liability are now doing a CYA.

Mold is natural and it can get very out of control in the right environment. It can be dealt with. Some measures are more extreme than others.

In my mind, the biggest issue to any investor is mold can hold up your deals. It scares off some buyers. It can require a clean bill of health that is expensive to obtain given the fuzzy standards or market misunderstanding.

Anyone who likes walking in the woods or working in the garden enjoys being close to mold. Those who like cheese seem to also have a warm spot in their diet for mold. Is there mold in yogurt? Where does penicillin comes from (note: I am allergic to penicillin as are many folks).

John Corey

Real Estate Investor · Cleveland / Akron, Ohio

i know this one was my fault, but just wanted to point it out.

bought a REO, with the mold disclosure.

it had mold all in the walls. we had to gut it.

get it properly inspected by an inspector who knows what they are doing, before buying.

that which does not kill me. . .

Real Estate Investor · Ohio

You didn't see any signs of mold before you found it in the walls and how did you discover it in the walls?

Real Estate Investor · Cleveland / Akron, Ohio

neighbor tipped me off the day after closing that the house had had mold problems.

got it inspected by a couple remediation companys, they found the problem.

had it gutted, was having it rebuilt until the contractor took off with an overly large deposit (newbie mistake).

still dealing with it, and everything else is on hold in the interim.

believe me, i have learned my lessons on this one. double hit, same house.

Renter · Belfort, NY

strive for the life

You said it right...I just looked at a REO property listed for over 5 months which is very unusal in dutchess county NY area. I went to check the house today. Open the freaking basement door and I can tell from the smell that that house must have a serious mold issues.

I took a contractor friend of mine with me and he confirmed with a another buddy who worked on this house in the past that this house has mold issues and I should not be offering more than a price of the land. And also keep in mind, it costs a lot of money(~15k), permits and time to bring down and house and build a new one.

So I be careful about mold issues.

Sign up