Foreclosure Mold Addendum Question

[dignifiedb]

(Michigan) I am in the process of closing on a house. The house is a foreclosure and in beautiful shape. However, the bank holding the property (citifinancial) just faxed me a "special mold addendum" that they want me to sign. A copy of the addendum can be viewed at: http://www.iasreo.com/forms/CITIFINANCIAL SPECIAL MOLD ADDENDUM.doc

Points 3-6 are the ones I find most alarming. The home has no visible signs of mold. In fact, the home is only a couple of years old. My question is this: Are mold addendums written/phrased as the one above is standard with foreclosers? Everyone is telling me there has been no history of mold at the home, but they still want me to sign the addendum stating I am aware of a mold problem. And the kicker is, point 6 requires that I alert future buyers of the supposed mold problem.

If there is no mold problem, which can be discovered with a $300 test, why am I being asked to sign the addendum? Also, is there a way around this addendum? I am aware a foreclosure is purchased "as is" but for them to spring this document on me almost 10 days into the purchase raises concerns. My wife and I love the home, but are seriously consider walking away if we have to sign the form.

 

[BradleyS]

Most all foreclosure properties from HUD or Mortgage Companies will have this disclosure in their package. It is a CYA document.

If you are worried about mold.....have a certified mold inspector test the property.

 

[dignifiedb]

Thanks for the response. And that is how it was kind of explained to me. However, is there a way around it (i.e. getting a mold test) that will prevent me from signing it. The problem is, if I sign that I am agreeing with the blunt language of the document and saying there is a severe mold problem, even though there may not be a problem at all.

I don't want to sign something that may not be true, especially if I plan on selling the home down the road and will have to disclose that there was once a mold problem. Couldn't they rephrase the document to read "Seller has no past or present knowledge of mold, mildew, or fungal problems at the home and Buyer is buying home in an "as is" condition. Seller is not responsible for any future problesms."

 

[John Se]

They hold the cards

Just sign and dont worry about it. The bank is making something out of nothing and you have to bearthe burden of that. Or just walk away, they will sell it to me because I wont worry about it and I will have a nice house and you will ber remorseful!

 

[dignifiedb]

I see what you're saying, but stipulation #6 in the aforementioned addendum requires that I notify future buyers of the "mold" problem.

To tell future buyers, "I know I signed a document admitting a mold problem, but there really wasn't a problem," sounds a bit shady. Also, by signing the document am I not perjuring myself (i.e. admitting that I am aware of a mold problem when I am fully aware there is not a problem).

The easy route would be just to sign it and not worry, but all the stipulations in the addendum make that a bit difficult. Thanks again for your reply. Any additional advice on this matter would be greatly appreciated.

 

[John Se]

Just the BS Deal we play these days

I see what you're saying, but stipulation #6 in the aforementioned addendum requires that I notify future buyers of the "mold" problem.

To tell future buyers, "I know I signed a document admitting a mold problem, but there really wasn't a problem," sounds a bit shady. Also, by signing the document am I not perjuring myself (i.e. admitting that I am aware of a mold problem when I am fully aware there is not a problem).

The easy route would be just to sign it and not worry, but all the stipulations in the addendum make that a bit difficult. Thanks again for your reply. Any additional advice on this matter would be greatly appreciated.

Then the next buyers will have to make thier own decision.
What a PIA, I feel for you, if it were me and I liked the house I would just buy it and chalk it up to CYA BS!