What about mold issues, can we clean that up with a 203k?

Yes, mold, asbestos, pet stains, and anything like that can be part of the FHA 203k repairs. We do mold testing so we see our share of mold.

I once had a job at the "Cat Lady's House" what a smell. One of the most difficult smells to really get rid of for sure. Most houses we deal with show signs of animal stains, how can any home be yours till you change the carpeting and clean that sub floor?

This pipe or flue to the right is transite pipe and is commonly known to contain asbestos. 

Quite often there will be asbestos paper wrapped on the duct work in older homes. I used to wrap asbestos paper on the fittings when I was a kid. Of course we didn't know it was bad for you. It is now commonly known to be a health hazard but only when it is friable  In this case it has been damaged and must be repaired. This particular type of wrap is called "Air Cell" but it is very much like a cardboard box with asbestos paper used as the outer liner and foil as the inner liner.