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Participate: Listen Live – Call in at 718-664-6583 and join in the conversation. Step into the SpotLight each Thursday or hear a replay of the show at your convenience. Set a show reminder at blogtalkradio.com/spotlight

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http://www.givemebackmycredit.com/blog/

Janet Ahmad, President

HomeOwners for Better Building

http://www.hobb.org

210-402-6800

Lemon Law for Homes

Dallas, TX. -" You scrimped and saved for years to buy a new home, only to have your euphoria cut short when you find serious construction flaws and learn that your homebuilder isn't about to pay up... The Texas Residential Construction Commission was supposed to provide homeowners recourse against shoddy homebuilders...Homeowners must go through the commission's complaint process before they can pursue arbitration or litigation. And here's the kicker: The commission has no authority to compel homebuilders to fix faulty houses. A Dallas Morning News report last fall uncovered this rather large flaw: Even though the commission had ruled in favor of a number of homeowners, reporters found that many were still hassling with builders to make things right. State Rep. Senfronia Thompson, D-Houston, offers a good fix. She's introduced HB 2721, which amounts to a lemon law for new homes . The bill would force builders, under certain circumstances, to buy back a home if they fail to make repairs recommended by the commission. In addition, if the builder decided to put the house back on the market, it would be required to disclose that the home was 'bought back' and why."...
03/27/07

 

Binding Mandatory Arbitration (BMA) Stories Sought by HomeOwners for Better Building

ATTENTION!

HOBB is in need of Binding Arbitration Stories. 

A report on Arbitration is currently being prepared and we need to hear about your experience.  Even if you decided not to go to arbitration for any reason or have sent your arbitration experience before please send it again, with any updates and additional comments. 

Specifically, we are looking for stories that reflect one or more of the following:

• You were unaware of the mandatory binding arbitration clause until the dispute arose.
• You could not afford the costs of arbitration, and therefore, did not pursue the dispute.

 

• You decided not to pursue a legal dispute against your builder after learning the negative results for homeowners in Arbitration and that builders most often win in Binding Mandatory Arbitration (BMA).

 

• You decided not to pursue BMA because you learned the arbiters’ decision is binding and cannot be appealed.

 

•  The decision rendered by the arbitrator was unconscionable, clearly contrary to the law, and/or went against the general notion of justice.

 

• Your arbitration appeal to the court was denied despite the arbitrator’s unconscionable and/or unfair decision.

 

• Stories that involve the use of mandatory binding arbitration agreements in automobile sale/lease contracts.

Please write a brief account of your situation include your contact information and your address.

This is a very important time in our efforts to rid consumers of forced arbitration in nearly all aspects of our lives, especially builder contracts.  So please let us hear your story.

Thank you for your help,

Janet Ahmad, President

HomeOwners for Better Building

http://www.hobb.org

210-402-6800

Comments Wanted on Abolishing the Texas Homebuilders Commission; TRCC

Brought to you by HADD:

"In Texas we have a 'Sunset Commission' which reviews each Commission in

Texas to determine if the commission should continue or if it
should be abolished. TexasThe Residential Construction Commission,
created by the builders for the builders, is up for review this year.

If you care to comment, please contact Kelly Kennedy at the Sunset
Commission  (512) 463-1300 or via email: sunset@sunset.state.tx.us.
Ask for the TRCC questionnaire.

From Houston Bay Area http://bayareahouston.blogspot.com/2008/05/history-of-failure-in-homebuilders.html

The TRCC law is up for sunset review, a process that includes a public
comment period through May 16 and hearings Sept. 23 and 24, during
which commissioners invite public testimony. Under sunset law
provisions, lawmakers are supposed to address any concerns raised when
they convene in 2009.

To fix this grossly unbalanced legislation will
require a willingness among representatives to give the same
consideration to the needs of Texas homebuyers as they do to the
wishes of the construction industry."

Builders Sodomise American Taxpayers for the Second Time in 20 Years Replete with Government Complicity; aka - Builder Bail Out

Can you smell the KY smoking? Is your lower back aching? Can you barely remember what happened to you? Well, let me refresh your memory…

1986 - 1995: $500 billion S&L bailout bill crafted by our elected officials that benefited fraudulent developers and lenders directly costing taxpayers approx. $153 Billion.

Does any of this sound vaguely familiar? It should; its damn near a mirror image of what is happening today with a few caveats. Here is what happened back then…

A bunch of greedy people got together and opened up a slew of S&L’s (Savings and Loans - specializes in accepting savings deposits and making mortgage loans) that were able to take in millions of dollars in government backed (FSLIC ) CD deposits and then take the same deposits (minus their capitol of course) and originate new mortgage loans with the money. Everyone involved got rich.

Then the greedy people got even greedier. The owners of these S&L’s began using the profits to make loans to their friends, relatives, and developers to fund construction projects that should never have been built. This created a building boom with no buyers. Meanwhile, all of this money being generated made it possible for kickbacks to accountants, auditors, representatives and senators on the banking committees.

Then the recession hits and the developers default on the loans causing a collapse of the construction market. Then our government comes to the rescue of the developers and S&L’s (who just got filthy rich) with our taxpayer money to bail them out.

Talk about sickening Déjà vu. Now fast forward to today…

2008 - $25 billion Builder Bailout under the guise of the “Housing Relief Bill” aka “2008 Foreclosure Prevention Act” passed by our Senate and being considered by our Congress preceded by mortgage fraud and over-development perpetrated by lending institutions and homebuilders pushing subprime garbage facilitated in shaddy backroom dealings.

Residential homebuilders saw the opportunity to make record profits due to the lowering of interest rates and a possible repeat of history. When the builders saw how much money the lenders were making they decided to enter and push their own mortgages; many times forcing homebuyers to use their in-house financing. Then subprime lending was just too profitable to ignore and the big homebuilders began pushing riskier loans to people who were obviously not going to be unable to repay them. All the while, building shoddily constructed new homes at a fevered pace causing the huge overhang of severely overpriced homes (by as much as 60%) in the residential housing market we are currently enjoying.

The flood of foreclosures and complaints of shoddily built homes that were sure to come are all around us driving our home values and wealth down. Yet, homebuilders and lenders have gotten rich as can be attested by the obscene compensation packages of their CEO’s and record profits.

Now, after all of this ill gotten money has been made, the homebuilders wanted to get in line to gorge again at the public trough via the first stimulus package. When they were denied the carry back tax credits that they sought the National Association of Home Builders (NAHB) threatened our government officials with, “ceasing all approvals and disbursements of BUILD-PAC contributions to federal congressional candidates and their PACs until further notice.”  As a result of this apparently legal blackmail, our elected officials crafted a second version of the bill that has been stripped of actual aids to the homeowners in order to serve up the public money demanded of them by the home building lobby lest the congress and the senate lose their precious reelection money; somewhat along the lines of legal bribes that assure future blackmail if the intended demands are not met; can you say Bob Perry of Perry Homes?

If this dual “Sodomiseing of the American Taxpayer” (you and me) to further enrich the wealthy has angered you as it has me, I urge you to contact your congressmen and senators and demand their accountability to the American people instead of continuing "corporate welfare" and strike out the tax credits demanded by the homebuilding industry (blackmail money) from the Housing Relief Bill / The Foreclosure Prevention Act of 2008. And if our elected officials refuse to represent their constituents – let’s vote the sorry b**tards out of office!!

HUD Secretary Alphonso Jackson steps down; The Bush appointee's decision comes amid an investigation for cronyism in awarding federal housing contracts. His resignation takes effect April 18.

Washington -"Housing and Urban Development Secretary Alphonso Jackson resigned today amid a criminal investigation into favoritism in awarding HUD contracts that critics said was blunting the agency's effectiveness in dealing with the subprime mortgage mess...Last week, Democratic Sens. Patty Murray of Washington and Christopher Dodd of Connecticut sent a letter to the White House calling for the secretary's departure, saying his legal problems represented a 'worsening distraction' at HUD at a critical time... 'We are deeply troubled by the growing number of allegations of impropriety . . . and the secretary's refusal to answer appropriate congressional inquiries on these matters,' the senators wrote. 'Unfortunately, the allegations surrounding Secretary Jackson, as well as his rejection of appropriate congressional oversight of his department, undermine his ability to effectively address the current housing crisis.' The investigation into Jackson began in 2006, after he publicly disclosed that he had revoked a contract because the vendor told him he did not like President Bush. Amid an inspector general inquiry, Jackson told investigators that he had misspoken. Jackson, 62, has since then been fending off allegations of cronyism involving HUD contractors. The FBI is looking into ties between Jackson and a friend who was paid $392,000 by HUD for work as a construction manager in New Orleans after Hurricane Katrina. In addition, Jackson is also being sued for allegedly trying to punish the Philadelphia Housing Agency for nixing a deal with his friend, music producer and developer Kenny Gamble."
March 31, 2008

House considers home lemon laws

San Antonio, TX. -" Mirasol residents returned to the Texas Capitol Tuesday to push for legislation that favors homeowners during disputes with builders. Mirasol homeowners are in a rent-to-buy housing program with the San Antonio Housing Authority, and many say their homes have toxic mold and were built with sub-par materials and shoddy craftsmanship. HB 1038 would give more teeth to the Texas Residential Construction Commission. Advocates say the commission does not have enough power to deal with contractors and builders...Rep. Ruth Jones McClendon, D-San Antonio, added five amendments to the bill. She's in favor of the bill because she has her own history with defective construction. 'It should be in favor of consumers. Really, because it is a state commission and the builders pay into the commission to pay for the salaries of the people who are working there...'...
04/25/07

   

A shocking court decision might free builders from responsibility for home defects

Phoenix, AZ. -"...Yep, these are lousy times to be a homeowner — and it may get much worse in this state. That's thanks to a recent court decision that consumer advocates believe will dramatically weaken new homebuyers' rights. The ruling basically lets builders off the hook for construction defects, saying that unless homeowners have a contract with their builder, they can't sue him...Many homeowners simply do not have contracts with their builder. Instead, they contract with a developer — the guy who assembles the land, deals with city codes, handles sales, and hires someone else to do the actual construction. That guy, the builder, does much of the work, but he's not actually on the contract. And now that means the builder's likely off the hook...If the decision stands, advocates say, it could create a giant loophole affecting the majority of new homebuyers in Arizona — 'millions of owners,' in the words of one lawyer...'If this decision stands,' writes John F. McGuire, the lawyer arguing the case, 'Arizona will become the only state where an owner is left without a remedy while the builders who caused the construction defects walk away with no responsibility.'...As with many infill projects today, the developer was merely a limited liability company, formed specifically for the project at hand. After selling the units, the LLC essentially closed up shop. (Under Arizona law, the individuals who form the LLC aren't personally liable for anything that goes wrong; they may have the bucks, but homeowners will never get a penny.)...To consumer advocates, the case could have a major impact. That's because, for insurance and tax purposes, few homes today are developed and built by the same entity. Even big companies, like Pulte (PHM) and KB Homes (KBH), tend to form separate LLCs for each project. Pulte Construction may have built your home, but you probably bought it from an entity like Pulte Desert Vista Bloom LLC. The court is saying that only a single entity that both builds and develops is responsible for construction flaws. And if that stands as law, why would anyone choose to both build and develop?...builders and developers often win cases by wearing down the buyer. The more roadblocks they can throw up, the more likely a homeowner is forced to abandon the fight...In an amicus brief on behalf of the Arizona Consumers Council, attorney Lisa Borowsky argues, 'If the decision of the court is left to stand, countless Arizona homeowners will surely be left with no legal recourse for damages resulting from the defective construction of their homes.' You'd think that kind of rhetoric would catch the attention of state officials. You'd be wrong. Although the appellate court decision makes it clear that homebuilder liability may be ripe for legislative debate, the Legislature has all but ignored it...Could it be because homebuilders are always among the top donors to state legislators? Or because homebuilder associations enjoy enviable popularity among politicians?"...
Published: March 13, 2008

                                                                                

Class-Action Lawsuit Filed Against Beazer Homes and Beazer Mortgage Corporation in North Carolina

New York, NY.-"Andresen & Associates and The Jackson Law Group PLLC, Charlotte-based law firms...announced that a lawsuit seeking class action status has been filed against Beazer Homes Corp. (BZH) and Beazer Mortgage Corporation.The case, pending in Mecklenburg County Superior Court on behalf of proposed Class Representatives Mark and Lea Tingley, alleges violations of North Carolina General Statutes Chapter 75, a consumer protection statute which proscribes unfair and deceptive trade practices. The action is with respect to numerous 'low income' subdivisions in North Carolina where Beazer Homes Corp. built and sold newly-constructed homes. The suit alleges that Beazer Homes Corp. and Beazer Mortgage Corporation conspired to illegally finance unqualified purchasers to buy newly-constructed homes, thus making widespread foreclosure and abnormal property devaluation inevitable."
March 26, 2007

Lawsuits say lender inflated home values; Buyers say KB Home, Countrywide estimates valued homes worth as much as 10 percent more than those they bought

CA., USA -"The complaint, filed Wednesday in Los Angeles Superior Court, also names as a defendants KB Home Mortgage Co., Countrywide Home Loans Inc., (CFC) Countrywide KB Home Loans, a joint venture of Countrywide and the builder, and two real estate appraisers. Two California couples are suing KB Home and mortgage lender Countrywide Financial Corp., arguing the companies schemed with real estate appraisers to inflate prices paid for homes as the housing market began to tank...The plaintiffs, Deborah and Lonnie Bolden, and David and Dolores Contreras, all residents of Live Oak, are seeking unspecified restitution as well as compensatory and punitive damages.They also want class-action status to cover KB Home (KBH) customers in California who obtained financing through Countrywide and closed on their purchases between Aug. 1, 2005, and July 31, 2006...KB customers were presented with comparable sales data from homes that were dissimilar, nowhere near the KB property being sold, or from sales that had not yet closed."...
02/08/2008 03:11:49 AM PST