Has anyone had to deal with banks not wanting to loan money due to mold in a home.

I have 20% to put down on a REO that only cost 60k in northern California. I have called many so called Hard Money lenders also, that will only loan about 50%.

The mold area in the home is only about a 2’x2’ area which I will remove the dry wall anyway to fix the home up.

Open to feed back.

Steve and Veronica.


Alot of people stay away from mold. Even though it looks like its only a 2 by 2 spot It can cost you a lot more than that. It kinda like cancer. IT can keep spreading even though you think its gone. If I deal with any type of mole I get a cost from a professional. If you get a price this way you might be able to get someone to work with you'



Thanks Randy

The listing agent has a quote for 2k to fix the mold isue. They just don't want to spend the money to fix it and are waiting for cash buyer to come in.

I left out the homes in the area are going for 120k to 150k.

Thanks Randy for your input. How much time is to much time to put into a home to buy Randy.

Steve and Veronica.


If it's a good deal I stick with it. I have let some go than 3 months later ended up with it.



Thanks Randy

I very much respect your opinion Randy.

Steve and Veronica.

My two cents

I am not sure about California, but here in Florida any known mold issues will need to be disclosed to the new buyer. So be very careful and check into your local laws because for some potential buyers knowing that mold did exist at one time may be a deal breaker.

If you decide to move forward, make sure the repair is by someone licensed to do so and keep any and all records. This will help put your buyer at ease if necessary.

Mold Creativity...

A creative way to address this concern of mold is:

if you are willing to forego the estimated 2k or whatever the actual cost is.

A.) Get the seller to either grant you "control" of the property in question.

B.) Repair / Replace the 2' x 2' mold area either yourself or by licensed contractor (in this particular case I opt for the license contractor even though I am more than fully capable of resolving. Because, you can then produce viable proof of resolution. Doc's, Invoice, etc.

C.) Reapply to Existing and in addition to, several other financial institutions for financing................with, Yes! You Guessed It...........NO MOLD!

I actually did plumbing, window replacement, masonry and brickwork prior to putting a dime down or securing the property. I was this certain I would gain property........And, I did.

Do NOT underestimate regarding your advantages or disadvantages. Variables can be a Wondrous or Disasterous thing. Just take to account, how you will make them work for YOU!


Mold issues MAY impact ability to get Insurance on home

Depending on how the mold got started and if the owner has filed a water damage claim against his home owners insurance, there can be a problem with getting insurance on the home without a mold/water damage exclusion. Our neighbors found out the problem when they tried to change insurance companies. Three different companies refused coverage without the exclusion.


Thank You Everyone

Thanks for all the good input.

Steve and Veronica.