Sunday, August 15, 2004 - PEPPERELL The nightmare continues.

Home lenders Fannie Mae and Washington Mutual have apparently reneged on prior assurances that the Davis family would not be responsible for a $227,000 loan on their 20A Shawnee Road home.

Nancy Davis was told about a month and a half ago that she could expect a "charge-off" on her mortgage because her house is badly infested with toxic mold.

Now, that has all changed, she said Friday.

"It's Friday the 13th, and I just got a letter saying Fannie Mae changed their mind and will foreclose on the property," Nancy Davis said. "They will put the property up for auction on Sept. 8 at 10 a.m."

In late June, it was widely reported in newspapers and on television that the Davises had finally caught a break: Investors were going to relieve them of their loan, and they could expect to get the good news in writing.
"I am out of my mind," she said. "I can't believe they are going to try and sell this property."

In December 2003, the family moved to an apartment a few blocks away because Nancy Davis developed a debilitating case of asthma she attributes to the mold.

Her husband, Rick, and 6-year-old son, Cameron, did not suffer ill effects.

Nancy Davis said Fannie Mae and Washington Mutual, of Jacksonville, Fla., previously tried to auction off the home to no avail.

"I called the media (on the day of the auction), and it was a circus. They couldn't sell it," Davis said. "Look what I am going to do this time."

Phone calls to Washington Mutual attorney Stephan Jongerling, whom Davis said told her the charge-off would happen, were not returned.

The Davises' attorney, April Babbitt, who helped secure the now defunct charge-off, was also unavailable for comment.

Because of interest accrued over time, the Davises now owe $247,000.

That's an amount Nancy Davis said she cannot afford.

"What are they going to do?" she said. "We have nothing. My husband doesn't have $20 to get a prescription filled."
Although the money is an added stress, Davis said she is primarily concerned someone will buy the property and suffer the same illness that has befallen her.

"I am sick, I am sick," she said. "We haven't owned this property for two years, and now they are going to do it to someone else."

The Davises cannot file for bankruptcy because they filed a civil lawsuit against real-estate agents and a home inspector for allegedly failing to inform them of pre-existing mold.

She added that it will be difficult for the home's new owners to purchase insurance on the property.

"We have a Clue Report Comprehensive Loss Underwriting Exchange," she said. "It goes through insurance companies and when you plug in our, address it says the property has 'unresolved issues.'"

Davis plans to have her home inspected for mold again and present the updated report before the home is auctioned off.
 

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