Question about mold

I recently came across a HUD property that has mold issues. Not sure the extent, HUD posted a sign that says evidence of mold. The house is currently up for owner occupants only, but I wanted to research information in case it opens for all purchasers. The house is a 4bdrm, 2.5 bth in nice area. The WACD value is $168K and HUD is selling for $117K.

My question is what does it take and cost to remediate the mold issue and will insurance companies provide coverage for this type of property? I know they don’t cover for mold. Also, what is the likelyhood of reselling for around appraised value given the prior mold issue?


As you look around at more and more HUD’s, you’ll find that more and more of them have the “mold” notice attached. It’s called CYA. I’ve been in many that had nothing more than everyday mold on the kitchen counter tile, and HUD posts that notice. Find me a home without any mold and I’ll fly you and your family to a resort destination. No need to remediate…just clean. If you find what you believe to be “black mold”, then you’ll need to concern yourself with an actual analysis and possible remediation. There are classes taught on identifying types of mold. Some insurance companies will not insure even remediated homes, so check around before making the jump. If you buy a HUD home with the intent to turn it quickly, check your numbers closely as few are the bargains they once were, even if you intend to hold.

here in Texas they are actually staring to become bargains again…

for the last 6 years they sold above retail… and still needed repairs…

I havent started bidding on any again yet…

but, if it keeps going down I met investigate…

David Alexander

Guy posted a great answer. I just finished a sheetrock repair job where under the sink had been wet for a long time. Some green color but nothing black. It was a small area about only 5 or 6 sq ft. I had to pull the cabinet and rebuild the rotten base so it was not that hard to get to the sheetrock. No big deal. I have seen projects where all the sheetrock had to be removed from the entire property with alien looking guys in white suits and masks and carrying the sheerock out in plastic sacks to a special dump site. This cost a fortune. Stay away unless you are a pro from the larger projects.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

Thanks for the information. I have seen many signs by HUD posted with mold issues. I will look into this further before making any decisions.


20% bleach + 80% water + spray bottle= remediation
It is a scam a hokes please if you know how to clean
you can make a fortune in that buisness but if you clean your
own property you can save a fortune.
(The reason for the suits and all the plastic and air scrubbers etc. is if they do not completly isolate that room that is being worked on it will never pass a test, and as soon as they remove there equipment and plastic it will fail the test agian. “Black mold” can affect many people differantly. like cats. Most people they just break out in higher insurance deductables.)

JB is right in many regards. I work with a mold testing company in Texas. The fact is MANY molds turn black after a period of time, so don’t assume toxicity based on color. Disclosures concerning mold, or evidence of, are simply ways for sellers to CYA. Obviously, one would be concerned about their “moldy” investment property if they considered that an asthmatic person was staying there. BTW, mold coverages are being offered by some ins cos…quite expensively too!

Hello folks,

I sell around 30-60 HUD homes a month to investors in Texas and Oklahoma. If I had to guess, I would say that 50% of these have that evidence of mold sign in the window. I would estimate that I have sold 250 or so HUD’s with this in the window and have never had a problem with insurance.