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Mortgage Broker News | 22 Jun 2015, 09:00 AM Agree 0
The government must clear up confusion about what is and isn’t a “grow-op,” warns a broker concerned healthy properties are getting pulled up with the weeds.
  • Jake Abramowicz | 22 Jun 2015, 11:21 AM Agree 0
    Can someone tell me which lenders DO finance former grow-ops? The last one I thought was firstline, but haven't heard of any lately.
  • Janice Ashworth | 22 Jun 2015, 06:14 PM Agree 0
    I recently had a client that bought a hoarder's house and is going through the remediation process. These are the same remediation requirements that a former grow op house must go through.
    He will not be required to declare that it once was a hoarder's house - even though the mouse infestation, rotting garbage, water damage and other major issues that existed prior to the remediation were as bad as any grow op house for safety and health.
    Had he bought a former grow op and did all the required work - he would still have to report that it was a former grow op. So would the next owner and the one after. Basically - until the house is demolished it will be required to declare that it was a former grow op - regardless of the remediation.
    This unfair stigma has resulted in almost no lenders doing mortgages on these properties. These properties that are now in better condition than many of the "regular" houses that sell everyday.
    Why remediated grow op homes have to declare the past history for the life of the home and other remediated properties don't makes no sense. Remediated means - it was remediated - doesn't it????
    I do not understand.
  • Semira Causevic | 23 Jun 2015, 04:06 AM Agree 0
    I have heard that CIBC will finance former grow ops if re mediated.
    In any case, I would warn anyone buying a former grow op. There is a home in my neighborhood that was a former grow op. The basement was full of plants. The home was re mediated and passed inspection. The house was sold for a really good price and guess what, the mold is back and this is 10 years later. The new owner is not able to sell the house because it is a reported former grow op. He is not be able to live in it , he may have to abandon the house as he is not in a financial position to tear down the house and re build. Over the years the windows were always sweating (moist) and you could see it on the siding as well. The new owner changed all new windows thinking it's the windows. The mold was building up in the walls and is now in the attic.
    I also use to say, but the house was re mediated and passed health inspection what is the problem. Now, I am skeptical having first hand experience with my former neighbor. It is true, mold can come back 10 or 15 years later.
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