Minnesota Couple Duped Into Buying Home Once Used As Meth Lab; Arbitration Award A "Pyrrhic" Victory, Lender May Wind Up Holding The Bag

In Cannon Falls, Minnesota, The Republican Eagle reports on the story of a local couple who thought they were buying the home of their dreams, and their subsequent arbitration "victory" in litigation over the home:

• Justin and Krista Keller purchased the six acres with a four-bedroom house and outbuildings in January for approximately $250,000. Their first home was a dream come true until they discovered what the sellers had failed to disclose: The property had been used in the production of methamphetamines. [...] Cleanup is expected to cost $30,000 or more, the property has dropped in value, and the Kellers have incurred the costs of the testing, remodeling that took place before the discovery and having to move out of the house and rent a place to live. Added to that are the legal fees from taking the case to arbitration.

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• The claims against the real estate agents were dismissed, but the sellers are liable for $100,864 — the damages incurred to that date, including attorney fees. Additionally, the sellers were named as responsible for any additional costs of remediation required by the state and the costs of storage and rental incurred by the Kellers while they had to live outside the house during remediation.

Reportedly, in attempting to have the seller satisfy the arbitration award, the Kellers’ attorney was unable to locate any accounts held by the sellers or find out where the proceeds from the home sale went. The Kellers are believed to be assessing which would be the least damaging way for them to dump the problem onto the mortgage holder — bankruptcy or foreclosure. They refuse to move back into the home.

For more, see Arbitration win was empty victory (may require free registration).

See also, Meth Turns Minnesota Dream Home Into Nightmare (read story) (watch video).

For a related post on meth labs and the problems they cause in homes that once housed them, see The Invisible Legacy Left In Homes Used As Meth Labs.

Go here for some methamphetamine information resources.

Go here and go here for other posts on home based meth labs. meth lab zeta