After Floods, Early Moisture Guidance Can Reduce Costs

MBA (8/11/2008 ) Murray, Michael
Preventive maintenance on moisture issues could save thousands of dollars for property owners and lenders, particularly after major storms brought flooding to Indiana, Iowa and most recentlyTexas.
The Tampa, Fla.-based National Association of Moisture Management sent messages through radio and television stations in Galveston and Houston following Tropical Storm Eduardo, asking homeowners to call for guidance about resources and property evaluations. On its web site, http://www.na4mm.com, flood victims and mortgage servicers can receive free advice and guidance about moisture and its cause-effect relationship on mold and costs.

Dennis Ragain, vice president and secretary of NAMM, said through preventative maintenance, 90 percent of issues associated with mold in the United States would stop.

Last month, the Associated Press reported that Federal Emergency Management Agency officials alerted Indiana of apparent mold discovered during routine maintenance of 11 mobile homes at two central Indiana mobile home parks housing recent flood victims. Ragain said NAMM has been working with FEMA and other government agencies on moisture prevention.

NAMM can refer lenders that receive repossessed properties or families returning to homes after a flood to moisture specialists who range in price from $150 to a four-hour $295 analysis, depending on area and standards. Ragain said some consumers can get "ripped off," by specialists who charge more than $1,295 to show up at a property only to acknowledge a mold issue.

“[Specialists] can go in and evaluate a property for moisture—nothing else—just possible moisture issues that will prevent literally thousands and thousands of dollars in repair work if [property owners] take care of the problem today,” Ragain said.

If neglected, moisture issues could also turn into major expenses affecting owners and lenders. Ragain said lenders find offices, apartment complexes and other properties with mold can destroy the structures if not found early enough.

“It will virtually eat all of the organic matter,” Ragain said. “In many cases, a lender will run into issues because the value of that property will continue to go down because of the actual destruction to it.”

For example, NAMM discovered a small leak from a dishwasher in a repossessed property unoccupied for eight months and about to go onto the market. The leak later turned into a massive mold problem for the lender requiring major reconstruction.

“That’s something that would have cost them maybe $20 to get a dishwasher fixed, [but] is going to cost them more than $20,000,” Ragain said. “That’s all because of what happened with the mold. It grew—it’s everywhere. It has spread. All of the carpets now have to come out. They have been totally saturated and full of mold. The flooring has buckled in the kitchen and all of it has to come up. That is what can happen if [lenders] don’t pay attention to these things.”

In Portland, Ore., a new condominium project with one unit that had little airflow in the downstairs and inadequate ventilation systems led to mold. A consultant referred by NAMM recommended an $800 fresh air system that eliminated the problem. Damages to the condo project cost $6,000 to repair because it did not have the air system.

“It was strictly a lack of ventilation,” Ragain said. “In most cases, the ventilation systems are very inadequate in most condominiums.”

NAMM can also provide information and refer consumers to contractors and specialists on “drying properties” flooded with water, similar to some still recovering from flooding in Indiana and Iowa.

“If the property is wet, that’s one thing. Dry it out. If it hasn’t had mold growing on it, and it’s not real porous, an owner does not need to get rid of it—just get it dried out and cleaned and it will be fine,” Ragain said.