Asbestos

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The presence of asbestos in recent construction creates yet another problem for the owner of a home which is already underwater in value.  The news is filled with stories about lawsuits against the builders and class action suits against the home manufacturers themselves, but that does not solve the homeowner’s immediate problem.  What does he do when it’s time to pay the mortgage each month?

The asbestos problem only exacerbates an already disastrous predicament for those who have found themselves already underwater on the value (or lack thereof) of their home.  This is a triple-whammy.  They no longer can afford the payments on their home, they must rent and live elsewhere, and they cannot unload the home with the asbestos.   If they spend the money to repair the significant damage, they own a home that is still underwater (i.e., it is worth zero.  In fact, it has negative equity.)