Mold forces home foreclosure
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Updated: 12:53 AM Nov 15, 2008
Mold forces home foreclosure
A West Knoxville family says mold has ruined their health, home, and finances. So much so, the House family says it's forced them into foreclosure. But they're not alone.
Posted: 11:52 PM Nov 14, 2008
Reporter: Mike McCarthy
Email Address: mike.mccarthy@wvlt-tv.com
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Knoxville, TENN. (WVLT) -- A West Knoxville family says mold has ruined their health, home, and finances. So much so, the House family says it's forced them into foreclosure. But they're not alone.

Tennessee now ranks 18th in the nation when it comes to the number of home foreclosures, according to the online foreclosure tracking company RealtyTrac. The company says 1 in every 504 Sevier county housing units were foreclosed on in October, which is the third highest rate in the state.

The House family bought a brand new home nearly two and half years ago, and they say they've battled mold problems just about ever since.

Now, they've given up that battle and their home.

Cherie House says her home was supposed to be nice.

But instead inside she says, "This was literally the money pit and our health was suffering."

House says it's because of the mold that's living in the walls of her West Knoxville home, again.

"I wouldn't put a family in with child in this house. I wouldn't put a family in this house," House said.

It all started about two and half years ago with a bathtub leak in what was a brand new home.

"The first time, the mold incident it was draining into the (office) window," House said.

She says mold grew and so did her family's health problems, including headaches, loss of vision, joint pain, and upset stomachs.

"The toxicology report found we had four of the most dangerous molds," House said.

House blames Developer John Luttrell for the problems. House says Luttrell, along with the family's insurance, fixed the dry wall in what was thought to be the damaged area. However, when the family pulled off kitchen cabinets just this week...

"We noticed this is the mold. It's exactly what we thought we got rid of two years ago," House said.

Houses' daughter Maxey said, "My headaches are getting worse. This is the second time so every time it keeps getting harder."

The original mold forced them into a hotel for a month, and House says it made her and her husband so sick, they couldn't work.

"We lost nearly every form of income temporarily. We haven't recovered yet," House said.

So, they're saying the "f word," foreclosure.

"Never missed a payment, never made one late, four months ago we just got to where we couldn’t take it anymore," House said.

And now the house, and everything in it, will go up for sale on Wednesday.

"I intend to be there, and make it known that this house has mold and as far as I'm concerned, no one with any type of ethics at all will sell this house," House said.

But it's really buyer beware. Volunteer TV talked to a realtor who deals extensively with foreclosures tonight. He said if you buy at a "cry sale," you buy "as is" and "where is." In other words, it's your responsibility to get the foreclosed home mold tested.

Volunteer TV tried to talk to John Luttrell tonight. He refused to comment.
The House family is considering legal action. They say it's not just about their home anymore, it’s about their health. For now, the House family plans to rent.


Latest Comments

Posted by: Julie Location: Texas on Sep 26, 2009 at 10:21 AM

Update-Now the builder that sold me the molded house still does not want to pay for house fixed and is taking arbitration case to appellate court. So much for "binding arbitration". Now out of house 3 years and is going in foreclosure. The bank will not do a short sale because they think I have not suffered a hardship. I have been forces to pay 2 house notes and double utilities for 3 years and money has ran out. I also have asthma from this house. So I am looking at foreclosure on my record. This was my first home and put a pool in not to barely enjoy. I just hope I will be able to buy again because it is not my fault that the builder hid mold and refused to fix it.
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Posted by: Julie Location: Texas on Apr 28, 2009 at 08:32 PM

2005-bought brand new spec home molded, found mold 2 days after closing. Builder did not fix the area correctly. 1 yr later remodel of home and find that mold been growing. Builder claimed not mold and safe to live in house. I went into arbitration to only be pushed back into house after 3 yrs and barely money to fix home. No monies awarded fro living out of house and medical. I have asthma from house and can never live in house. Also found water leaked in garage and front bedroom from ac which not in lawsuit. So now looking at foreclosure because no living out expenses paid or medical. Attorney's are taking 45% awarded which includes the amount to fix house.
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Posted by: Cherie Location: west knox on Nov 18, 2008 at 09:58 PM

I'm thankful the house didn't sell while it was on the market. We felt the situation was remedied after a month in a hotel and thousands of dollars out of our pocket, Luttrell didn't reimburse us at all for anything. Had we sold the house, the next family would have suffered like we have, our realtor would have been open to a lawsuit and most likely us for not disclosing what we didn't know still existed. Was it the same problem or another one? Regardless, a brand new house shouldn't suffer from mold. If only we had known that a builder's warranty only protects the builder !!! The house SHOULD be condemned now knowing that it's still a huge problem. The EPA HAS been contacted and we're awaiting a reply.
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