Not really. If FHA or VA it would make more sense

Oof, can o worms!

I've never had that HOWEVER I can't recall a fixer like that being financed.
We had an apartment building with bad water damage on 2 floors that required mold remediation, the seller claimed his insurance and the buyer closed once it was done - cash.

I suppose banks are getting tighter with such things . . . will be interested to see what others have experienced.

I have not had that problem and would wonder how an appraiser could make a definitive mold diagnosis without testing it. 

I have not.  I also question the qualifications of an appraiser to determine if what they see is, in fact, "MOLD".  

I have not had that happen in 20+ years in the business. 

No I've never had that situation occur.  But I can totally understand why the appraiser is doing so for the bank. CYA.  We have dealt with quite a few mold issues over the years but it's been on the seller side and caught by the home inspector and remediated by the proper people before going on market. Good luck on this one Joan.

as it should be.  The appraiser works for the bank.  Mold is a HUGE liability to the BANK.  It should be handled prior to the bank using house as collateral 

This "mold" is a deal killer and cities, sellers and buyers plus appraisers cannot escape from it. If it exists, it rules the land it lives in. KISS of DEATH until you SHOO it away! When I go to list a property, if I have any doubts, I just decide & insist on painting. The mold then, meets its match....ME!

I have not had this ever happen with a Conventional loan. 

Regardless of the loan program, Appraisers will call out anything deemed to be a “health & safety risk” (mold, termites, roof damage, broken stairs, etc). With mold, it is merely a visual observation that the Appraiser notes with the disclaimer that he/she “is not a mold expert” but recommends a mold specialist to sign off on whether the mold poses a safety risk. Once an underwriter sees these comments, a “subject to - prior to funding” condition is added to get a mold report & clearance. Lenders will not ignore these risks, regardless of whether the property is sold “as is” and/or if the buyer is aware of the mold.

Not yet 

Can't say I have Joan Cox but then again, myself and my investors mainly pay via CASH for our flips. Never had an Investor looking to purchase with a loan, except once in a while using Hard Money Loans!

No but he did the buyer a favor by having the seller fix it. 

No, only inspectors usually do that. I could see the bank requiring this of the appraiser since it is their collateral that may get reduced in value if there is a serious mold infestation. 

I've never had mold called out shy two exceptions in 24 years and they were called out by myself and the buyer and confirmed by the inspector. Both were negotiated without appraiser involvement.

No. However, I haven't sold a property with mold that noticeable. 

Only once and the appraiser was correct. Loan was denied. Buyer thanked the appraiser and paid cash! It was really a one off, since most borrowers can't pay cash!

Yes, I had this not too long ago. A house "AS IS" perfect for this buyer. It was priced right to fix it up. It was going to be gutted. Appraiser commented on everything that needed repair and then under-appraised it. The buyer switched lending companies, and we had a  new appraiser who saw the value of the home and the land. All's well that ends!

If it looks like mold, it is sort of like...walks like a duck, quacks like a duck, looks like a duck...I think it is a duck..or, in this case, mold. You don't have to be an expert to waive a flag and suggest that it be checked out.

Also, appraisers take photos of anything they suspect may be significant and include them in theirs appraisal report.

Yes, often on a property that buyer thinks is easy rehab. It is very difficult state by state to counter that the mold was cleaned up. 

Colorado does not have specific laws as to landlord/seller duties or liability.

Colorado does ask that landlord start fixing the cause in 96 hours.

Contractor does not need any mold license to remove BUT HOWEVER you need a remediation certificate from licensed operator.

Fix the leaks which are the source, remove drywall with visible black or green, treat the studs and plumbing with appropriate treatment. I say appropriate because there are a thousand opinions on what works. 

Why does the seller have to pay for it all? Get bids and negotiate. 

There are thousands of types of mold. Some are harmful to humans and animals, some not. Mold is everywhere. Give me a call about your best steps. 

This is a first for me.

No, I haven't, however the amount of professionals who make claims that they are not qualified to make is a long list. 

We see this in the AR Q&A all the time when someone posts an inspection photo.

I've only had mold called out by the home inspector.

WOW! Talk about over-stepping his/her boundaries, Joan! I have seen that with VA & FHA loans but, never conventional. As you said, now, the sad part is, the lender knows about the defects and can require any or all of them be remedied. I'm sorry you're having to go through this!

Yes  - if this is an obvous issue - I think most appraisers  will make note of it and make it a  " subject to "  on their  report  ....which means lenders will need it remedied  before closing as  its considered a " health and  safety"  issue