ForeclosuresMass - ForeclosuresMass Monthly - Legal Spotlight - Don't Try This At Home

Although we have over two million types of mold spores, it took years for the U.S. government to fully understand the affect mold can have on our health and our homes. Indoor mold can cause everything from respiratory ailments to cancer, which means, if your home has mold, it must be handled carefully.

Although the U.S. currently does not have any laws specifically referring to mold remediation, in 2003 the Federal government published guidelines on how to handle mold – mostly due to the fact that many states were using obsolete guidelines from over a decade ago.

Since 2003, many states, including California, Montana, New Jersey, and Texas, have enacted or have pending legislation regarding indoor mold levels and its remediation. Massachusetts, unfortunately, does not have any laws or regulations concerning mold. In fact, the state still relies on the outdated New York City mold guidelines from the early 1990s.

* Next 37 17 investors only!

Due to advances in microbiology testing and research, the way we deal with – and prevent – mold today is vastly different than it was in 1991. Back then, if toxic black mold was found in your attic, you would have to tear out all the wood, any insulation, the asphalt shingles on the roof – in short, everything – and replace it, to the tune of $20K or more.

Now we can run highly accurate tests to determine the type of mold and whether it’s alive or dead. Knowing if you have a “good” mold or bad mold – or even dead mold -- makes all the difference because we also have different treatment strategies depending on mold type and level of contamination.

Because the mold industry is not regulated in Massachusetts, it’s easy for unscrupulous contractors to take advantage of unsuspecting homeowners and real estate investors. What follows are my three strategies for properly dealing with mold.

Mold reproduces by means of tiny spores. These spores are invisible to the naked eye and float around in the air indoors and out. Mold can only grow if it has moisture and water.

The number one way to prevent mold from growing is to keep your indoor environment dry from attic to cellar. The number one cause of mold is leaking water – from pipes, through the roof, into the cellar, and even from down spouts that let water run directly into the foundation of the house. Other causes include high areas of moisture that never completely dry out, such as the bathroom, or previous water damage that wasn’t properly treated.

If you have a leak, get it fixed immediately. To help eliminate moisture in the bathroom, install a ceiling fan and allow air to circulate. Cracking your windows, even in winter, is beneficial because it allows “diluted” air to mix with “concentrated” indoor air.

Cellars benefit from dehumidifiers – although you have to be careful with this. Massachusetts wants to enact legislation that states anytime a home inspector notices a dehumidifier in the cellar, he or she has to note a “moisture” problem. You should also keep your attic at least 5 – 10 degrees warmer than the outside air to prevent moisture build up.

If your cellar floods due to a broken sump pump, overflowing washing machine, or a natural flood, dry out the area as quickly as possible. Remove all carpeting, waterlogged debris, and paper-backed insulation. If you have wood studs, make sure they dry out, too, otherwise mold will set in.

I also recommend that you use high-quality HEPA AC and furnace filters (HEPA stands for “high efficiency particulate air”). A typical $.99-cent filter will filter out large particles, such as cat hairs. A HEPA filter, on the other hand, must pass a test to carry the HEPA designation. These types of filters trap at least 99.97 percent of particles of .3 microns – including mold spores (you can find test results on the packaging). These filters are much more expensive, but they also do a fantastic job of keeping your air clean.

Many people automatically assume black mold is toxic mold. Of the two million types of mold, only four are toxic.

If mold is discovered during a home inspection, don’t panic – and don’t let the home inspector tell you it’s “mildew” or that he can remove the mold for you. (Mildew, for your information, only grows outdoors on plants.) It is a huge conflict of interest for a home inspector to say you have mold, run a test on it, and then charge you for clean up. If this happens to you, report the person immediately.

More important, don’t try and fix the mold problem yourself. One, if it does turn out to be toxic mold, you can contaminate yourself, your family, and the rest of the house; two, if you do have a real mold problem and you don’t have it properly treated, you’re liable to be sued down the road for not disclosing the problem.

For mold testing, look for an independent mold inspector who has been certified by the National Association of Mold Professionals (NAMP). A certified inspector has been trained to properly take mold samples using swabs and a potato dextrose culture. The sample is then sent to an accredited lab where it is allowed to incubate before tests are run.

Test results are returned within 7 – 8 days and will state the type of mold, the level of contamination, and whether the mold is dead or active. All of this information is vitally important because your mold remediation company will base its plan of action on the test report. If your mold is dead, all it takes is simple clean up with bleach. If it’s toxic, well, then you’re talking “bio-side” clean up where the mold remediation company has to tent off the area and most likely remove the affected wood, carpet, insulation, sheetrock, etc.

An unscrupulous inspector will take a sample using lift tape and then give you “test results” one day later. These results usually state, “Yes, this is mold.”

Last year my friend had his fully finished cellar ruined during to the Merrimack Valley flood. He lost everything, including his rare book collection. The insurance company said it would cover up to $90,000 worth of clean up costs and property and sent in a national industrial cleaning company rather than a mold remediation company.

They did a good job of cleaning things up and removing the paper-backed Gypsum wallboard but they left backing from the carpet and the wood studs. A few months later, the cellar smelled musty, so my friend had it tested. The results? The mold spores were too numerous to count. The insurance company then had to send in a certified mold remediation company who sanded the concrete walls with dry ice, among other things. Once clean up was complete, the cellar environment was retested and given the all clear. The cost to the insurance company because it didn’t use a mold remediation company in the first place? $200,000 dollars.

When mold is discovered in your home, don’t panic. Call in an independent mold inspector, ensure tests results come from an accredited lab and state the type of mold and level of contamination, and use a certified mold remediation company to oversee clean up. Your best bet, however, is to prevent mold from happening in the first place.

Brian McDonough is an independent, NAMP certified mold inspector based in Brockton, MA. He can be reached by phone at 508-878-8203 or via email at mcdonoughinsp@peoplepc.com.

Did you like this article? You May Also Like:

	Interview with the Expert: Kevin Norton Reports from the Foreclosure Trenches Kevin Norton Having ridden out the late 80's market downturn in Massachusetts, REO and auction expert Kevin Norton has seen a thing or two. In his report from the trenches, Kevin gives a first hand account about how this market differs from the last downturn and why investors should anticipate Title fraud due to "no doc" loans, tightening insurance standards, and even 5% cash deposits at the large style auctions.
	Feature Article: How Green Light Realty Exploded Profits by Documenting Business Systems Don Armstong, Green Light Realty Working with E-myth coach David Hilton, Don Armstrong put in place documented systems that has helped him run his business more efficiently, lower his costs, generate more leads - and close short sales 93% of the time. Don takes you inside the experience of working with a professional coach and explains three of the steps he took to transform his business.
	Success Story: Husband and Wife Team Know it Pays to be Sincere when Making Deals Jeremy Cyrier, The Cyrier Sales Team As a real estate broker and investor, Jeremy is always on the lookout for good investments for both himself and his customers. Through weekly emails from ForeclosuresMass, Jeremy is notified of foreclosed properties listing up-to-date, accurate data. Not too long ago, Jeremy was notified of a foreclosed apartment complex that peaked his interest. This is what transpired...
	Winning The Client: Door Knocking For Profit Eric Woolhiser Knocking on doors is an effective technique for meeting and connecting with homeowners. It's also overlooked by many investors. Eric Woolhiser explains why this approach is so much more effective than simply sending letters, and offers three, field-tested insights regarding how to put this tool to best use.
	Interview with the Expert: FCM Co-Founder Blasts Her Way Into Prosperity Thinking Sheila Farragher-Gemma, ForeclosuresMass, Corp. As Sheila Farragher-Gemma states in her interview, success is based on your attitude. Carry a negative mindset and you'll never accomplish anything. Change your attitude and you can achieve anything. Sheila explains how she's used Dan Kennedy's program, Wealth Attraction for Entrepreneurs, to learn what separates the really successful entrepreneurs from the rest of the pack. As she reveals, combining positive thinking with action can help you overcome self-doubt and develop the "millionaire mindset" - the kind that attracts real wealth.
	Success Strategies: Blogging for Real Estate... A Primer for Starting a Blog Ted Demopoulos Blogging has definitely hit the mainstream - and with over 750 real estate blogs at last count - it's time you consider starting a blog if you haven't done so already. In his article, author and blogging expert Ted Demopoulos gives you his three success strategies for starting and maintaining a blog. The key takeaway: become familiar with the blogosphere and get to know other real estate bloggers before you jump in feet first.
	Success Strategies: Using the Internet to Research Emerging Markets Charles Warnock Because travel is expensive and time-consuming, it pays to know how to find information on emerging markets and neighborhoods via the Internet. Charles Warnock, Director of Marketing for eNeighborhoods.com, explains why a town’s Website is your most important first stop, plus how you can find a goldmine of information at local, county and federal government sites such as HUD.
	Finance Corner: A Good Fit: Real Estate in Your Investment Portfolio Christopher P. Gullotti, MSFP Financial planners hear comments about real estate investments frequently. Does investing in real estate truly offer financial opportunities? Many times yes, but not always for the reasons people think...
	Feature Article: How to Successfully Sell Your Property Via an Online Auction Site Neil Kaplan Newcomers to the real estate game, online auctions generate excitement and allow real estate investors to bid 24/7. Plus, you can sell your property within weeks, instead of the months that traditional methods can take, while still generating healthy profits. Like traditional auctions, you can lose money if you make a misstep. In his informative article, Neil Kaplan, founder of online auction site agencybid.com, gives you three strategies for successfully auctioning your property online.
	Interview with the Expert: What is Hard Money and How to Use It Dan Burke If you're new to real estate investing, you've probably heard the term "hard money" but have no clue what it is. Simply put, "hard money" is short-term financing. In this month's Interview with the Expert, Dan Burke explains how hard money differs from conventional financing and why hard money financing gives you a better advantage when dealing with really hot deals or bank short sales.