Thursday, May 26, 2011

Post-Closing Meth Contamination Discovery Keeps Couple From Moving Into 1st Home As 'Wells' Unloads REO Once Used By Squatters As 'Party Pad'

In Colorado Springs, Colorado, The Gazette reports:
  • In a scenario that plagues all too many homebuyers throughout the U.S., the Hardys discovered they’d bought a house contaminated by methamphetamine. In this case, the contamination apparently came from people using, not manufacturing, meth. (Click here to read a Q&A on how properties can become contaminated with meth.)

  • No matter; several samples taken from the house tested positive for meth contamination, and not willing to expose themselves to it anymore than they already had, the Hardys haven’t entered it since.

  • Now, they’re stuck with a $1,114-a-month house payment on a property they can’t occupy, while facing enormous cleanup costs. All their belongings, including the new furniture, remain in the house. Lauren, who learned she was pregnant right around the closing, miscarried a few weeks later.

  • Lauren’s father, Bob Wenz, has become the couple’s advocate, trying to make things right and hold someone accountable, but it may be a difficult battle to win. “It’s a mess,” Wenz said.

  • The Hardys want theirs to be a cautionary tale for anyone purchasing a house in Colorado, and they offer one piece of advice: Spring for the money for a meth-contamination test, because you can’t count on current laws to protect you, and you can’t know for sure what once took place in that property.

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  • The house, built in 1989, went into foreclosure in July 2009. Wenz said it appears the owners had been renting it, and the renters trashed it. The bank that serviced the mortgage, Wells Fargo, took ownership of the house, then turned it over to the Veterans Administration, which guaranteed the loan.

  • Around that time, neighbors were reporting suspicious activity at the house, with people coming and going at all hours of the day. One neighbor, Mary Meredith, called the Wells Fargo office in San Francisco and spoke to someone in the president’s office.

  • “What I told them was that there was a lot of traffic going in and out of the house,” she said. “We felt there were people who were actually — I guess the term would be squatting — in the house, and we suspected extensive drug use in the house, if not trafficking.”

  • It’s possible that Meredith’s complaint could have triggered a test for meth contamination and a cleanup, but no one acted on it. Jason Menke, a spokesman for Wells Fargo Home Mortgage, says their records show that neighbors called twice in July 2009 to report the property was “not secure,” and Wells Fargo passed along the information to the VA.

  • “Our records indicate we were made aware that the property was not secure, but there’s nothing specific related to drug use or activity,” he said. The VA did not return phone calls to discuss what information they were given or whether they had reports of drug use at the house.

  • A series of arrests at the house in 2009 also failed to trigger any notification of possible meth contamination. In June 2009, sheriff’s deputies went to the house to check on a complaint about barking dogs and arrested a woman for possession of drug paraphernalia.

  • About three months later, deputies were called to the house again, and encountered the same woman, who admitted she had been “partying heavily the past few weeks,” according to the report. Deputies found meth in the master bedroom and another bedroom. The house was in shambles, the toilets were full of feces, and dog feces littered the basement floor.

For more, see Meth contamination haunts Springs homebuyers ('It really is buyer beware').

(1) For other stories relating to the unwitting purchase of homes infected with methamphetamine residue, see:

posted by Home Equity Theft Reporter at 4:02 AM