Condo owner: 'I feel like we're getting screwed'

Condo owner: 'I feel like we're getting screwed' »Play Video
REDMOND, Wash. -- What many thought would be a dream condo ended up instead with a moldy mess. And to make things worse? The person the condo owners believe is responsible is nowhere to be found.

The controversy surrounds the Riverwalk at Redmond community. For Jessica Bailes, who is nine months pregnant, amid the baby toys and nursing pillow
is a growing mold problem she can't get rid of.

"We're worried that it's a pathogenic mold and I don't want my child to be exposed to that," she said.

At their neighbor's condo, another kid's bedroom is empty. The children read, write, and live in the master bedroom with their parents,
who don't want them playing near what could be a health hazard.

"I'm angry and frustrated," said homeowner Vijay Dusi, "because I completely believed in the laws and processes... They promised me a healthy, healthful home."

Thirteen homes in this community have been hit with water intrusion and mold.

The problem appeared a few years ago, so homeowners commissioned an independent study. It found the problem was there since the apartments were converted to condos in 2006, and should have been fixed then.

We tried tracking down the developer, which was an LLC out of Las Vegas. It has since been dissolved, according to state records.

Sources say the owner-operator moved to Mexico when the market went soft.

Homeowners face a $4 million price tag to fix the place, something no one can afford.

"That, on top of an underwater mortgage… it's like throwing money into a bottomless pit," said homeowner Jason Ing.

One other option: walk away and let the banks foreclose. Something the Bailes family feels could be their only option.

"I feel like we're getting screwed, basically," Jessica Bailes said. "The fact that we can't get a hold of this developer."

There are a couple more options on the table, and homeowners are expected to vote at their next meeting in a few weeks.

Meanwhile, the city's mayor called the situation "tragic" and said his staff is working on helping homeowners there.