Lender’s Nightmare: Meth Lab Homes

The Denver Post. Com reports that meth lab homes are a problem for lenders. A grandmother who was cooking meth in her kitchen was arrested and put in jail. The savings and loan that had originally loaned her the money to buy the house then foreclosed on the house, when her mortgage payments stopped. It was the first time that the bank found out what meth lab homeowners across the United States are going through.

Century Savings is a tiny financial institution, founded in 1903. It sits on Trinidad’s Main Street, a relic of a bygone era when S&Ls took deposits from and made loans to the people in their communities. It has only $86 million in assets and 16 employees.

“We often hear about the senseless toll meth takes on human lives, but rarely about the costly toxic mess left for somebody else to clean. It might cost $30,000 to $40,000 to demolish and dispose of the contaminated house, leaving a lot worth only $10,000. And forget about the loan. How’d you like to own a 50-unit apartment building and find out you had a meth lab on the bottom floor, and you’ve got to evict 50 tenants and clean it up?”

Read the complete story on the Denver Post . Com website.

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