Rarely are problems going to come up on cosmetic problems.A leaky basement is a structural defect that FHA will want fixed.

Even though she is in financial straights, as the owner of record I believe she will need to be a part of any agreement.If you strike an agreement with all parties you can get it before all the world knows.The advantage of talking with the owner in this case is, she would have no motivation to hide any defects that you don't want to be suprised with.

There are likely to be other defects in the contract.

Reinstalling electrical systems and piping can be very costly and any defect should be factored into the offer price.

The house might have serious defects that needs to be fixed that you didn't forsee.3) You "over-fix" the house.

It is a fairly consistent rule that larger returns come from loans in deeper distress or files that carry more difficult defects.

Fixing this is going to depend on how bad the affected area is.If there's just some mold spots on a bathroom ceiling, you can kill the mold with some vinegar, or bleach/borax.Bigger mold defects (like deep penetration) might cost you significantly more.If I was in this situation, I'll first get a friend out who knows what he/she is doing for input, then maybe start getting quotes from mold specialists.And you do want to do this as soon as possible - you're right this could affect your health and that of your loved ones

I have to explain to them that I would have to have a mental and/or moral defect to fabricate such stories.

I am feeling EXTREMELY motivated to be a top producer in real estate...one of my character defects is PATIENCE...I want to get things done today, not tomorrow.

And there is not a single real estate transaction that has happened in the last 100 yrs that doesn't have some kind of technical defect.