Saturday, May 17, 2008

Get a CLUE

One of the main drawbacks to purchasing an REO, is the lack of disclosure about the home. For Mr. BT and I, this is nothing new. In Virginia, where we purchased our first home, sellers are not required to disclose anything about the home (and in fact are discouraged from doing so by their Realtors).

One thing you can do to put your mind at ease if there is limited disclosure, is get a C.L.U.E. report. From what I understand, its a report that details any insurance claims on a home in the last 5 years. Unfortunately a buyer cannot order it, it must be done by your agent or seller.

To emphasize the need for these types of precautions, one of my favorite site lurkers told me a story about a family they knew who lived in Folsom. This family had built their dream home on Tarbolton Circle (very high end, around 800k), but eventually realized the home had a mold problem that was making them sick. They were foreclosed on and I believe the home was recently sold by the bank (in the last month or so). I believe they plan to warn the new owners about the problem.

Sidenote: Mold has really killed the values of several developments around here, such as the development South of 50 called Stonbriar. Those homes were way out of our league when we first moved here, but recently some have dropped below the 500k mark. Anyone know how to check for mold? Or who migh provide this service?

2 comments:

biosurfer1 said...

I know for a professional mold inspection, they have to get behind the dry wall to check. Any mold that is seen on the textured side surely means more of that hiding...dark moist areas breed mold.

Be very careful if suspect anything!

AgentBubble said...

A few mold inspection companies:

http://moldpatrol.com/
http://gotmold.org/
http://www.environix.com/locations/california/sacramento/

As for the CLUE report, I seem to remembrer ordering one for my seller a few years ago. Seems like only the seller can do it now, according to this link:

http://tinyurl.com/5hczrp

If this is true, looks like the bank will have to order it.