Mississippi Warns Against Buying Damaged Cottages in Louisiana Auction

The Mississippi Emergency Management Agency is discouraging people from purchasing Mississippi cottages for housing at an auction in Louisiana next month because the units were damaged by Hurricanes Gustav and Ike.

MEMA Director Mike Womack cautioned potential buyers that these units are not safe to live in. “Buyers need to beware,” Womack said of the Gustav damaged units. “These units are not safe for housing because of water damage and mold, which can be dangerous to a person’s health. The damage might not be readily visible to onlookers or potential buyers.”

Two weeks ago, MEMA transferred titles of 232 Gustav damaged units to Louisiana-based Henderson Auctions. All titles were stamped as “salvage.” The units were condemned by insurance company adjusters because of water damage and likelihood of hazardous mold and mildew.

The two and three bedroom units no longer bear a U.S. Department of Housing and Urban Development inspection label since they are not considered fit for human habitation.

Also, the RV Association inspection labels, RPTIA, for the one bedroom park models were removed for the same reason.

Henderson intends to auction off the units in Louisiana in April. The auction company attempted to hold an auction in Mississippi in January. That auction was called off because the state had not yet received payment from the insurance company, according to officials.