Would you buy a reasonably priced house if you learned that it was recently home to a grow op? Does it matter if there’s a stigma attached to a house? What if it was formerly a hoarder’s paradise? Maybe a chain smoker stunk up the place for 20 years?
If you have no problem with moving into a former drug factory, unfortunately the banks might!
Real estate experts warn home buyers that both banks and insurers are increasingly say no to mortgages on former grow ops, due to potential issues with mould, harmful chemicals (pesticides), and faulty wiring.
Most lenders who are willing to cover a mortgage will run test after test on a grow op home.
Why wouldn’t banks want to be involved with a former grow op? They’re worried that if the homeowner defaults, a stigmatized home will be difficult to resell.
Read more about this issue in the Toronto Star HERE.