I have placed and offer to buy a foreclosure with an FHA loan, now the other realtor is claiming that there are signs of mold in the basement (very questionable in my opinion) And wants the deal to be a 203K. My question is what if the appraiser comes back and says that mold is a problem and the remediation cost are going to be astronomical, is there a way at that point to say not interested in property and move on?
Yes, you have the right to back out if the inspection finds something like mold.
You can’t be forced to live in a moldy house and they can’t force you to pay extra for mold remediation if you don’t want to.
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What did your home inspection reveal? The inspector should have discovered this sort of thing. You can always withdraw your offer based on the home inspection. Additionally, the lender may not loan the purchase money if there are significant problems with the house.
So if the lender won't loan the money or if the inspection showed a significant level of mold you should be able to withdraw the offer. This is true even for an "as is" type of property and if the money isn't available for the purchase it is for sure the closing will not happen.References : Former real estate agent
Yes, you have the right to back out if the inspection finds something like mold.
You can’t be forced to live in a moldy house and they can’t force you to pay extra for mold remediation if you don’t want to.
References :
You would need to get a home inspection to properly document the problems in the home and their approximate cost of repair. If mold is detected and remediation would be required, it would not hurt to have a company come and give you a quote for their services to know what you are getting into. Did your offer include that it must pass a home inspection, or was it an ‘as is’ sale. If you have the home inspection clause, you can request that the homeowner do the remediation at his cost, or take it off the purchase price.
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