The easiest way to avoid liability for environmental issues is to have an engineering firm perform a phase one.

If it's a commercial deal or larger multi family it can vary as much as 60 days for environmental studies etc.As far as wholesaling is concerned  I'm an agent so I can't comment too much on that, but there are plenty of people on BP that will probably chime in shortly.

I've posted on this topic many times and as an investor and attorney, my opinion is generally to wait unless the property is over $500k or a commercial property which could havce environmental issues.

And it saves the environment.The environmental piece always comes last in a business setting or transaction, but it helps nonetheless and as time goes on we'll sure need to give it more priority out of necessity of the planet.

My environmental consulting company just inspected a 21 unit building in  southern CA. 

However, I did want it to be clear that I operate with a conscious and with integrity.  

As for your scenario, you could get to a point where you consciously default and walk away.  

Older properties carry a higher likelihood of systemic problems: lead paint, poly piping, aluminum wiring, asbestos, environmental issues, etc. 

You put 10 beers in anyone originating loans 2005-2007 (I was not doing this at that time), and you will learn that VERY quickly when they start talking about getting paid three times as much on a $200k "ghetto loan" deal as they did on a million dollar 30 year fixed loan (after including all the bonuses for all the sh-tty "features" of the $200k "ghetto loan").Folks that are self-conscious about their credit and how their work history will be viewed, for various historical reasons, are more likely to either be persons of color or folks often termed "trailer trash."

He did so to throw off a federal grand jury investigation by the Environmental Protection Agency, court records state."