http://www.citizen.org/pressroom/release.cfm?ID=2885

Public Citizen Report Exposes Builders’ Use of Forced Arbitration and Deceptive Warranties to Escape Accountability for Construction Flaws

WASHINGTON, D.C. – Millions of new home purchasers each year are forced into binding mandatory arbitration by deceptive “warranties,” and those warranties may violate the law in as many as 17 states, Public Citizen has found.

This conclusion is contained in a report titled “Home Court Advantage: How the Building Industry Uses Forced Arbitration to Evade Accountability.”

These warranties are particularly insidious because consumers often do not learn of their details until after moving into their new houses. Although builders often portray the warranties as gifts, bonuses or extra protections, the warranties actually serve to exempt the builder from liability for all sorts of problems (such as mold, building code violations and “consequential damages”) while relegating buyers to pursue legal disputes in a private forum chosen by the warranty company.

Public Citizen today sent letters to attorneys general in states that ban the use of forced arbitration in insurance contracts. Those states are Arkansas, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Mexico, Oklahoma, South Carolina, South Dakota, Utah and Washington. The letters are posted at www.FairArbitrationNow.org.

Public Citizen’s report exposes the troubling consequences of forced arbitration for home buyers, a process that is rife with bias and exorbitant costs – and is so devoid of safeguards that an arbitrator’s failure to follow the law is specifically disallowed as a ground for appeal. Among the outrages revealed in the report, available at www.FairArbitrationNow.org:

In Georgia, an arbitrator seemed to accept Leslie and Scott Kimbell’s assertion that their floor was sinking but inexplicably blamed them for the problem rather than the builder who had failed to install proper supports under their stone fireplace. The arbitrator provided no relief and instead hit the couple with $12,950 in fees.
Jordan Fogal and her husband were forced from their Houston townhouse because of mold caused by a leaky roof. An arbitrator ruled that the builder had engaged in fraud. But she awarded the Fogals just $26,088 – less than 8 percent of what they paid for a house they were forced to abandon.
Army helicopter pilot John Rechtien and his wife, Michelle, of Savannah, Ga., filed for arbitration after battling their builder for nearly two years over myriad problems. The arbitrator cited technical language in the warranty to dismiss complaints over leaks, mold, broken trim and unfinished drywall, among other problems. On the items for which the arbitrator held the builder liable, he based his award primarily on repair estimates that the builder obtained and submitted to the arbitrator. When Michelle called the same contractors to make the repairs, they refused to honor the prices that formed the basis of the award.
Houston couple William and Jennifer Falbaum convinced an arbitrator that the foundation of their house was flawed. The arbitrator agreed but ruled against the couple in large part because he personally disagreed with an opinion of a Texas Court of Appeals. After the arbitration, the couple learned that the arbitrator had even signed a brief submitted to the Texas Supreme Court on behalf of the Greater Houston Builders Association seeking to overturn that very court decision.
“Because of forced arbitration, my husband and I have been stuck with a house riddled with costly defects,” Michelle Rechtien said during a press conference to discuss the report’s findings. “The building company we bought our new home from has used arbitration to force complaints against it into a rigged system so it can avoid accountability.”

Added Fogal, who also spoke at the press conference, “Our story is shared by millions of Americans caught in the snare of this cursed [arbitration] clause. Arbitration is the privatization of the justice system where the rules no longer apply.”

Although proponents of forced arbitration often call for more “study” of the problem rather than a cure, scant information is available to the public for real research – a problem for which the arbitration industry also is to blame. The process is inherently secretive, and arbitration firms routinely flout the few laws that require them to disclose basic information about their cases. The American Arbitration Association, the country’s largest arbitration firm, is supposed to abide by a California statute’s requirement to disclose a prevailing party in arbitrations, but does so in only 4.3 percent of its reports. Public Citizen has sent letters to California Attorney General Edmund G. Brown Jr. and the city attorneys of five California cities urging better enforcement of the state’s arbitration disclosure law.

“The arbitration companies know that their futures depend on keeping the people who hire them happy, and that means the builders and warranty companies,” said David Arkush, the director of Pubic Citizen’s Congress Watch division. “As a result, the system is stacked against the consumer.”

Uncategorized

WASHINGTON, D.C. – A newly formed coalition is calling on Congress to stand up for employees and consumers and ensure companies are held accountable for misdeeds by passing legislation to end forced arbitration.

The Fair Arbitration Now Coalition’s goal is to pass the Arbitration Fairness Act (H.R. 1020). Participants represent consumers, employees, homeowners, franchise holders and more. They range from Public Citizen, the National Association of Consumer Advocates, the National Employment Lawyers Association and the American Association of Justice to the National Consumer Voice for Long-Term Care, Home Owners for Better Building and the Leadership Conference on Civil Rights.

The creation of the Fair Arbitration Now Coalition comes as the big business versus citizen battle heats up on Capitol Hill. Many industry groups are actively lobbying lawmakers, pressing them to allow businesses to continue what many consider a predatory practice.

Forced arbitration clauses are hidden in the fine print of employment, cell phone, credit card, retirement account, home building, nursing home and assisted living contracts, to name a few. Just by taking a job or buying a product or service, individuals are forced to give up their right to go to court if they are harmed by a company. Because the private system of forced arbitration benefits companies and disadvantages consumers and employees, more and more industries are using the tactic of forced arbitration to evade accountability.

“The Arbitration Fairness Act does not seek to eliminate arbitration and other forms of alternative dispute resolution agreed to voluntarily after a dispute arises,” the groups wrote last month in a letter to lawmakers. “Its sole aim is to end the unscrupulous business practice of forcing consumers and employees into biased arbitrations by binding them long before any disputes arise.”

The coalition is also supporting the Fairness in Nursing Home Arbitration Act (H.R. 1237 and S. 512), which would eliminate mandatory binding arbitration clauses from nursing home contracts.

The Fair Arbitration Now Coalition will hold a press conference and lobby day on Wednesday, April 29, with more than 50 consumers, employees and their representatives, who can speak about the injuries people suffer when they are forced into arbitration in an attempt to hold companies accountable for wrongdoing.

The coalition also has launched a Web site, www.FairArbitrationNow.org, explaining what forced arbitration is, outlining the kinds of contracts in which forced arbitration clauses appear, providing links to news articles and telling stories of arbitration horrors. In addition, a blog keeps readers up-to-date on the latest arbitration news.

To read the letter sent by the groups, go to

http://www.fairarbitrationnow.org/content/letter-support-arbitration-fairness-act-hr-1020

Uncategorized arbitration

HADD ACTION ALERT

Predatory Lending and the damage it does to this country must be stopped!

 

 

Below are links to show you how to make public comments to the government and contact your elected officials.

 

Please tell the U.S. Government that you do not want builders and others to continue predatory and risky lending practices that artificially inflate housing prices, lead to foreclosures, and damage the U.S. economy.  Many Americans have lost a third, half, or more of their retirement funds to the damage caused by the housing and lending bubble and its predicted bust.  Consumer groups, economists, professors, the FBI, alternative news sites and blogs were ripe sources for early warnings, yet overall mainstream media was a cheerleader for these industries, keeping many Americans in the dark until it was too late.  It is still extremely rare to hear mention of home builders’ role in this mess mentioned on televised news, and many Americans are not online and do not have access to alternative news sources.

 

During the housing bubble, lenders engaged in predatory and even illegal lending practices that contributed to artificial price inflation, fraud, foreclosures, and the current economic mess that tax payers will end up paying for.  These practices netted industry participants millions of dollars in commissions and profits.  Many purchasers were not true home buyers but speculators, and even straw buyers who were part of mortgage fraud scams.  The toxic loans, on overpriced houses that were also sometimes shoddily built, were quickly sold and resold as investments, with ratings agencies rating them highly despite the inevitable foreclosures that would result.  Now, these industries want a bailout, too!

 

Home builders operated their own in-house mortgage companies or used affiliated lenders such as Countrywide and others.  Not only has Countrywide been in the news for possible mortgage fraud, settling large cases with some states’ attorney generals’ offices, but some of the builders’ lenders have been—or are being—investigated by the federal government for lending violations.  Several large builders were fined last year; KB Home was fined millions a few years ago, and Beazer is being investigated.  Many smaller builders have been indicted and some already sentenced for their role in elaborate mortgage fraud schemes, (e.g. F. Jeffrey Miller in Kansas to name just one).   HADD’s message board, blog, and news page contain many such news articles and official documents pertaining to these cases.  Unfortunately, when the government goes after a company, money recovered—if any—may go to cover the government’s cost, not necessarily paying restitution to consumers.

 

The FBI found years ago that most of the mortgage fraud was being done by the industry itself, and it warned in other reports that mortgage fraud was a white collar crime that could take out the economy.  When banks began losing enough to matter to them, they complained, and the government took notice.  But it was too late to stop the runaway train that eventually did cause the economic mess we now face, and countless Americans have been financially damaged.  Some even had their signatures forged by lenders on loan documents!

 

One good thing Congress finally did in 2008 was to ban the use of money-laundering seller-funded down payment assistance programs that were not true charities but a way for builders and sellers to skirt lending laws.  The IRS called them a scam and HUD unsuccessfully tried to shut them down.  Even after Congress finally banned them—closing the barn door after the horse escaped—the industry lobbied to bring them back in H.R. 600, and that legislation is before congress now. 

 

 

WHAT YOU CAN DO TO HELP CURB PREDATORY LENDING

 

1.  Please contact your U.S. Senators and Representatives in Congress to ask them to vote against H.R. 600, the Seller-Financed Downpayment Reform Act of 2009, a bill that would bring back toxic seller-funded down payment assistance programs.  Contact your elected officials here: http://www.usa.gov/Contact/Elected.shtml

 

2.  Please tell our government to stand firm on Real Estate Settlement Procedures Act (RESPA) rule changes that restricts what builders can do to entice buyers to use their in-house or affiliated lenders: Docket number and Title: “FR–5180–F–05 Real Estate Settlement Procedures Act: Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs, etc.” http://www.regulations.gov/fdmspublic/component/main?main=DocumentDetail&o=0900006480902288   SEE IMPORTANT INFO BELOW REGARDING PUBLIC COMMENTS.

 

PUBLIC COMMENTS ON RESPA RULE CHANGE:  Docket number and Title: “FR–5180–F–05 Real Estate Settlement Procedures Act: Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs, etc.”  You will need to include the title and docket number in your comments, regardless of how you submit them.  PDF about the rule change and explanation of how to comment.  http://www.hud.gov/news/requireduserule.pdf   You may make your comments on paper and mail it, (address provided in the PDF: Regulations Division, Office of General Counsel, 451 7^th St. S.W., Room 10276, Washington DC, 20410-0500). 

 

 

FURTHER INFORMATION

 

Kenneth Harney, real estate columnist, on this topic, (the one being discussed on the blog): http://seattletimes.nwsource.com/html/realestate/2003435874_harney19.html

 

Short article about the National Association of Home Builders suing the U.S. Department of Housing and Urban Development (HUD) to try and stop implementation of the RESPA rule change that restricts how they can entice buyers to use the builder’s lender: http://www.respalawyer.com/2009/01/hud_delays_implementation_of_r.html

 

H.R. 600, FHA Seller-Financed Downpayment Reform Act of 2009: http://www.opencongress.org/bill/111-h600/show 

 

Mortgage Implode-O-Meter article encouraging Americans to speak up and stop H.R. 600,  http://ml-implode.com/sfdpacampaign.html

 

IRS targets Down Payment Assistance Scams: http://www.irs.gov/newsroom/article/0,,id=156675,00.html

 

Major Seller-Funded Down Payment Company Sinks to New Low, Feb. 9, 2009:  http://whistleblower.ml-implode.com/?p=262

 

HUD’s opposition to down payment assistance programs is discussed in this PDF file, “STATEMENT OF KENNETH M. DONOHUE, INSPECTOR GENERAL, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: BEFORE THE

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, UNITED STATES SENATE:  We found that the down payment loan transactions did not meet the intent of FHA requirements in that the assistance was not a true gift from the nonprofit; default rates for buyers receiving such assistance were significantly higher than for other FHA loans.” http://banking.senate.gov/public/_files/donohue.pdf   (You may only be able to view this link by copying and pasting the URL to your browser’s address bar; for some people it will not work as a hyperlink.)

 

FBI says 80% of mortgage fraud is done by the industry: http://www.fbi.gov/publications/financial/fcs_report2006/financial_crime_2006.htm#Mortgage

 

FBI says “By its nature, mortgage fraud needs “insider” involvement.”  http://www.fbi.gov/page2/sept04/swecker092204.htm

 

FBI warned of Mortgage Fraud years ago: “Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an “epidemic” of financial crimes which, if not curtailed, could become “the next S&L crisis. Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions.” Published on CNN September 17, 2004.  http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/

 

HUD RESPA Settlements:  http://www.hud.gov/offices/hsg/sfh/res/resetagr.cfm   Several large builders fined for lending violations Oct 29, 2008, and many other settlements here are of interest, too.

 

HUD Office of the Inspector General (HUD OIG) Audit Reports by state, also show some builders and lenders found to be in violation of lending laws: http://www.hud.gov/offices/oig/reports/oigstate.cfm

 

Home builder F. Jeffrey Miller and others found guilty in Kansas mortgage and real estate fraud case, coverage by attorney Rachel Dollar’s Mortgage Fraud Blog: http://www.mortgagefraudblog.com/index.php/weblog/permalink/builder_and_associates_found_guilty_in_5m_mortgage_fraud_case/

 

Beazer Homes Investigated for Potential Fraud, coverage by attorney Rachel Dollar’s Mortgage Fraud Blog: http://www.mortgagefraudblog.com/index.php/weblog/permalink/beazer_homes_investigated_for_potential_fraud/

 

Where Were The Media As Wall Street Imploded? National Public Radio, March 9, 2009.  http://www.npr.org/templates/story/story.php?storyId=101475670

 

——————————————

(Action Alert by Homeowners Against Deficient Dwellings, http://www.hadd.com 2009.  HADD strives to educate consumers on new home purchases, shoddy construction, home warranties, drawbacks of arbitration clauses in contracts and warranties, predatory lending, etc, so consumers do not get taken on the most expensive purchase they will likely ever make—a house.  If they already have been taken, we hope our information will help them deal with the problem more efficiently.  HADD is currently operated by consumer-advocates who have had a real estate related problem and generously donate their time and skills.  We are an education, networking and information organization, registered as a non-profit in Kansas and Arizona, but we are national in scope, with volunteers in about 25 states at this time.  We are not supported by lawyers or any other special interest group; thus far our funds come from diverse sources including consumers and 100% of our funds go towards operation costs of HADD.)

Predatory Lending

Problems using the builders lender:

SWAT team at HUD targets builders’ cozy deals

By Kenneth R. Harney

Syndicated Columnist

When home builders behave badly, some of their customers may have an unexpected resource: the federal government’s RESPA police, who have become increasingly active in resolving consumers’ complaints through nonpublic interventions with builders.

RESPA stands for the Real Estate Settlement Procedures Act, a consumer-protection statute that targets kickbacks and other settlement-related abuses. The RESPA police are investigators at the Department of Housing and Urban Development. They are best known for their splashy public-settlement agreements with real-estate, title-insurance and mortgage companies, sometimes involving hundreds of thousands of dollars.

But with no public fanfare, the RESPA police have begun intervening in complaints brought by individual consumers who say builders are unfairly forcing them to use their affiliated mortgage companies.

The affiliates’ loan deals, the complaints say, typically are more costly than those available from independent mortgage brokers and lenders.

In one case outlined by HUD officials in an interview, a builder canceled a sales contract and seized an $11,845 good-faith deposit when a buyer refused to use the builder’s affiliated mortgage company.

Under RESPA, builders and others generally are prohibited from requiring the use of a specific lender or title company as a condition of a sale.

After RESPA investigators contacted the builder and gave the firm 15 days to resolve the dispute, the builder — whom officials declined to identify because no public action was taken — not only allowed the buyer to proceed with independent financing but paid the buyer’s lender to lower the interest rate.

In another recent intervention, a consumer complained that a builder seized her $10,000 deposit when she refused to accept the loan deal offered by the builder’s mortgage affiliate.

The affiliate’s loan officer “fraudulently altered financial documents that would have placed the consumer in a home she could not afford,” HUD said.

In other words, the builder’s loan officer allegedly was willing to approve her for a mortgage amount and monthly payments that ultimately would cause her to lose the home to foreclosure.

After investigators intervened on her behalf, the buyer was refunded the $10,000.

In a case involving the popular incentives dangled by many builders to attract buyers in soft markets, a prospective buyer was offered a free morning-room addition to the house. The builder said the addition was worth about $13,500.

The only hitch was that the purchaser would need to use the builder’s mortgage subsidiary.

The builder assured the buyer the terms offered by the subsidiary were very competitive with outside lenders and brokers, according to the complaint.

But when the buyer checked the competition, he found the subsidiary’s fees to be bloated — a $5,400 “origination” charge, for example — and far more costly.

The buyer complained to HUD, arguing that the builder was engaged in an intentionally deceptive practice.

After investigators hinted at legal action, the builder agreed to waive the $5,400 fee and threw in the $13,500 morning room, HUD said.

Investigators are pursuing other nonpublic mortgage-related complaints, officials say, including these allegations against builders:

• They raised prices of homes when buyers declined to use their mortgage affiliates or subsidiaries.

• They required buyers to deposit extra money in escrow accounts if they refused to use the affiliated lender.

• They coerced buyers into using a designated lender with the threat of withdrawing a $5,000 “seller’s credit” toward closing costs and adding $10,000 to the home price.

If you find yourself in a builder squeeze play involving mortgage, title or other affiliates, HUD has some practical advice:

• Compare interest rates, loan terms and closing costs of several independent lenders before agreeing to use the builder’s affiliate or wholly owned subsidiary.

Determine whether the affiliate’s rates and total charges are higher than the going market rate and offset any discounts, incentives and upgrades dangled in front of you.

• If you intend to use a builder’s affiliated mortgage company to take advantage of incentives and then refinance the loan to get a lower rate, be sure the mortgage note does not contain a hefty prepayment penalty.

• Be suspicious about large discounts or additions contingent upon using the builder’s loan affiliate.

Knowing the price of comparable homes in the area may help you determine whether the builder is offering a true discount or raising the price of the home before offering the discount.

If you have a complaint involving high-pressure tactics designed to coerce you into using a builder’s lending affiliate, you can call the RESPA enforcement staff at 202-708-0502. Or you can e-mail them at hsg-respa@hud.gov.

For background on RESPA, visit www.hud.gov.

 

Kenneth R. Harney: kenharney@earthlink.net

(This is just one source of this same article that I saw a couple years ago.  It is worth repeating and discussing.  Right now HUD is trying to limit incentives builders can use to coax people to use their lender, because of several problems, one being that it fools w/the true price of the house, and another being that builders have engaged in predatory practices.  Beazer Mortgage and KB Mortgage were fined and eventually both builders shut down their own mtg co’s and started using Countrywide which has many problems of its own.  Several other builders were fined last year by HUD for RESPA violations, and I feel that it’s the tip of the iceberg.)

http://seattletimes.nwsource.com/html/realestate/2003435874_harney19.html

 

Predatory Lending

Shoddy Workmanship, Materiels and Warranties in my Stanley Martin Home (built in 2001/2002)

 

• Multiple Virginia and International Building Code violations to include: 
  • improper through-wall flashing and weep holes on brick exteriors and chimneys; the entire chimney was torn down and re-built by Stanley Martin (which was unnecessary if they had read up on through wall flashing – wonderful stuff that keeps water out if installed correctly)
  • improper spacing behind brick veneer (1 inch is the minimum)
  • improper roof, dormer and bay window step-flashing and kick-outs 
  • Improper moisture barrier installation 
  • these code violations result in rainwater leaking directly into the home (ceiling and walls) causing damage to carpets, walls, ceilings and wood trim - including mold ($3,700 in damages/repairs)
  • clothes dryer exhaust, mounted in the utility room ceiling, exceeds vent distance to exterior of home;  all dryer manufacturers recommend less than 8 feet to prevent fire
  • Water leaks in through roof-mounted gas fireplace vent during wind-blown rain weather conditions (you can hear the water dripping into the top of the fireplace)

 

• Cheap/Improper Building Materiels: 
  • untreated soft pine or other unsuitable woods used for exterior windows and dormer trim on roof;
  • cheapest water heater used, which failed after only five years old ($650 dollars even though it was still covered by the heater warranty)
  • cheapest exterior paint was used that required repainting after 5 years ($1,600 to repaint and replace rotted wood)
  • cheapest air conditioner which fails to properly distribute warm/cool air to upper levels and keep the house comfortably cool during the Summer heat
  • cheapest door hinges used which excrete a black powdery substance that discolors walls, doors and stains carpets 
  • cheapest exterior door hardware/handles/deadbolts (brass finishes completely failed and rusted after 4 years) - $350 to replace
  • cheapest plumbing mixing valve installed above water heater; valves is completely corroded and leaking after only 5 years
  • plumbing backpressure relief valve/tank failed after four years ($260); plumbing pipes “rattle” when water is turned on or off (toilets flushing, washing machine, etc)
  • cheapest light fixtures were used in bathrooms; plastic domes became “sealed” to the lighting fixture and unable to remove to change bulbs ($250 to replace fixtures) 
  • cheapest vinyl windows were used; warranty was for 25 years, but the company has gone out of business (Barber & Ross); windows are NOT self-flashing

 

• Improper Workmanship: 
  • a Stanley Martin employee fell through my ceiling, into my family room, while climbing around in the attic (looking for the source of the water intrusion) 
  • multiple repairs for the same problems (four and five times) without actually fixing the problems 
  • PVC piping in the home was not primed before gluing, which caused the A/C drain line to fail and $2,300 worth of water damage to wood floors, ceilings and walls (to include mold) 
  • exterior wood trim was not properly primed and painted
  • exterior wood trim on dormers installed improperly butting directly against the surface of the roof; ends/joints were not primed or painted, causing wood rot ($450 to replace)
  • Stanley Martin refused to hire an engineer or architect to properly diagnose and repair the problems the right way… the first time (I hired my own $650)
  • The dryer exhaust pipe was improperly installed in the ceiling (so my flexible dry exhaust pipe runs from behind my dryer up to the ceiling – exposed and very unsightly)
  • Drywall installation extremely poor;  drywall tape exposed and peeling away in multiple areas
  • Stove exhaust fan is not vented to the outside (fan just blows smoke and fumes into the kitchen)
  • None of the bare drywall walls were primed before painting
  • Concrete slabs were not properly leveled/sealed before installing wood floors (wood flooring has voids)
  • Upstairs guest bathtub was improperly installed/leveled and has cracked ($650 to replace)
  • Debris from the brick chimney repair (water intrusion repair) clogged my rain gutters because the workers did not bother to clean them out after they were finished; site supervisors did not bother to inspect; rainwater overflows the gutters and has stained my brick exterior ($350 to clean)

 

• Unsatisfactory Warranty  and Customer Care:
  • The home only came with a 1 year (all inclusive warranty) and a 10 year structural warranty; Stanley Martin should stand by their products and extend the 1 year to a 3 year all inclusive warranty
  • Warranties are not transferrable to subsequent owners (Stanley Martin should stand by their products and extend the warranties to subsequent owners)
  • Stanley Martin Warranty group insists that water intrusion is not a structural warranty issue and not covered by the 10 year part of the warranty;  a professional will tell you that water causes significant structural damage to wood frames, mold and wood destroying insects (all of which will result in structural failure)
• Virginia and Prince William County Code Enforcement and DPOR
  • The current inspection criteria and milestones for new construction (close in inspection) does not allow for inspection of brick veneer or siding flashing, weeps, or correct cavity space behind the brick
  • Most other states and counties require visual inspection of all brick veneer related flashing points at foundations and openings (all doors and windows)
  • Rampant water intrusion issues in PWC clearly indicate current code inspections are either not timed correctly, are not thorough enough or not happening at all.  PWC code enforcement was not able to provide physical proof that my home was inspected.
• County and State Laws
  • Virginia and every state must adopt codes and laws that ban the use of disclaimer statements when purchasing a home (disclosure statements only)
  •  Virginia and every state must mandate mold and water intrusion testing prior to purchasing a home (sellers responsibility)
  • Virginia and every state must change building code inspection points and criteria that specifically look for the critical construction elements designed to prevent water intrusion
  • Virginia and every state must pass laws that require Homeowner Associations, Realtors and county building officials disclose any and all information related to shoddy construction, water intrusion and mold (regardless if it was repaired) to potential buyers/renters
  • Virginia and every state must pass laws that require county and state building official track any and all complaints, issues, law-suits, etc in a public database; the statute of limitations MUST be extended for these critical construction defects

If rainwater is leaking into your Stanley Martin home or if you are experiencing other issues as a result of shoddy construction of your home visit the links belowfor eye-opening information.  Copy and paste the links into your web browser if necessary.http://groups.google.com/group/leaking-stanley-martin-homes?hl=enhttp://answers.yahoo.com/question/index?qid=20080924164344AAxke6Ehttp://www.brambletonian.net/forums/index.php?showtopic=913&st=0&gopid=187669&#entry187669http://groups.google.com/group/rwi-consultants?hl=enhttp://marviniavecchia.spaces.live.com/blog/http://groups.yahoo.com/group/leakingbelmontbayhomes/http://www.hobb.org/index.phphttp://www.hadd.com/http://www.brambletonian.net/forums/index.php?showtopic=913&st=20&gopid=189386&#entry189386

http://en.allexperts.com/q/Buying-Selling-Home-1476/2008/9/Leaking-Stanley-Martin-Homes.htm

Off The Subject, Toxic Mold, Uncategorized belmont bay, building codes, code, codes, flashing, marvin iavecchia, shoddy construction, stanley martin, va, veteran, virginia, water damage, water intrusion, water leak, woodbridge

Home building defects are largely a state and local affair, but still, which future pres do you think might be willing to address the hidden but still severe lack of accountability in new home construction? Under Bush, and any new plans they propose as bail outs seem to serve shareholders first. Public interests are there, but I suspect are entirely incidental. Republicans generally believe if you let corp. America run loose, it naturally provides prosperity, VIA the trickle down theory. Sometime I think that theory was thought of while standing at a urinal. But it also has truth in it. American companies that hire Americans workers should be rewarded more than the latter in this mission to strengthen our economy, because only those truly American companies create needed tax revenue gains to rebuild the American economy. The fact that millions of jobs have gone overseas cuts America’s economic strength, because all those workers that are out of work, or working for much lower wages are no longer contributing the same tax dollars to the “mysteriously” failing government budgets nationwide. Getting America back to work with good paying jobs should be the key role in restoring our fiscal responsibility as a nation. Keep in mind the billions wasted in Iraq on no bid contracts are largely tax free incomes to American’s who go to work there, even for private companies. Double, maybe triple insanity bleeding our country there. While the home building industry is asking for federal tax incentives to boost their business, is this a window to push for some federal regulations attached? Maybe require the elimination of MBA, and/or to get some sort of lemon laws to prevent the total home disasters that wreck people lives? Make tract home builders, who build hundreds or thousands of homes legally recognize they are in fact creating products by definition, which gives consumers more appropriate protections. The stimulus idea for new homes can be a good thing if it serves people. They are desperate for help, so isn’t this the time? A time to finally make clear that statistical justifying even one home building disaster for any American family is unacceptable. The loss is much to great to put on average Americans, especially first time buyers, but many others as well. My opinion is that Obama might consider a stimulus plan that would include consideration for the people, whereas McCain would only consider people as a side effect of boosting the industry, whose desire is to get back to their gluttonous glory days, which IMO means more lives ruined as collateral damage of economic strength. Who do you think might have an answer, if any?

Politics

Home building defects are largely a state and local affair, but still, which future pres do you think might be willing to address the hidden but still severe lack of accountability in new home construction?

Under Bush, and any new plans they propose as bail outs seem to serve shareholders first. Public interests are there, but I suspect are entirely incidental. Republicans generally believe if you let corp. America run loose, it naturally provides prosperity, VIA the trickle down theory.

Sometime I think that theory was thought of while standing at a urinal. But it also has truth in it. American companies that hire Americans workers should be rewarded more than the latter in this mission to strengthen our economy, because only those truly American companies create needed tax revenue gains to rebuild the American economy.

The fact that millions of jobs have gone overseas cuts America’s economic strength, because all those workers that are out of work, or working for much lower wages are no longer contributing the same tax dollars to the “mysteriously” failing government budgets nationwide. Getting America back to work with good paying jobs should be the key role in restoring our fiscal responsibility as a nation.

Keep in mind the billions wasted in Iraq on no bid contracts are largely tax free incomes to American’s who go to work there, even for private companies. Double, maybe triple insanity bleeding our country there.

While the home building industry is asking for federal tax incentives to boost their business, is this a window to push for some federal regulations attached? Maybe require the elimination of MBA, and/or to get some sort of lemon laws to prevent the total home disasters that wreck people lives?

Make tract home builders, who build hundreds or thousands of homes legally recognize they are in fact creating products by definition, which gives consumers more appropriate protections.

The stimulus idea for new homes can be a good thing if it serves people. They are desperate for help, so isn’t this the time? A time to finally make clear that statistical justifying even one home building disaster for any American family is unacceptable. The loss is much to great to put on average Americans, especially first time buyers, but many others as well.

My opinion is that Obama might consider a stimulus plan that would include consideration for the people, whereas McCain would only consider people as a side effect of boosting the industry, whose desire is to get back to their gluttonous glory days, which IMO means more lives ruined as collateral damage of economic strength.

Who do you think might have an answer, if any?

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List of Shoddy Workmanship, Materiels and Warranties in my Stanley Martin Home (built in 2001/2002)

• Multiple Virginia and International Building Code violations to include: 
  • improper flashing and weep holes on brick exteriors and chimneys;
  • improper spacing behind brick veneer;
  • improper roof, dormer and bay window flashing and kick-outs; 
  • Improper moisture barrier installation 
  • these code violations result in rainwater leaking into the home (ceiling and walls) causing damage to carpets, walls, ceilings and wood trim - including mold ($3,700 in damages/repairs)
  • clothes dryer dryer exhaust ,mounted in utility room ceiling, exceeds vent distance to exterior of home;  all dryer manufacturers recommend less than 8 feet to prevent fire
  • Water leaks in through roof-mounted gas fireplace vent during wind-blown rain weather conditions (you can hear the water dripping into the top of the fireplace)

• Cheap/Improper Building Materiels: 
  • Untreated soft pine or other unsuitable woods used for exterior windows and dormer trim on roof; 
  • cheapest water heater used which failed after only five years old ($650 dollars even though it was still covered by the heater warranty); 
  • cheapest exterior paint was used that required repainting after 5 years ($1,600 to repaint and replace rotted wood);
  • cheapest air conditioner which fails to properly distribute to upper levels and keep the house comfortably cool during the Summer;
  • cheapest door hinges used which excrete a black powdery substance that discolors walls and stains carpets; 
  • cheapest exterior door hardware/handles (brass finishes completely failed and rusted after 4 years) - $350 to replace
  • cheapest plumbing mixing valve installed above water heater; valves is completely corroded and leaking after only 5 years
  • plumbing backpressure relief valve/tank failed after four years ($260); plumbing pipes “rattle” when water is turned on or off (toilets flushing, washing machine, etc)
  • cheapest light fixtures were used in bathrooms; plastic domes became “sealed” to the lighting fixture and unable to remove to change bulbs ($250 to replace) 

• Improper Workmanship: 
  • A Stanley Martin employee fell through my ceiling, into my family room, while climbing around in the attic; 
  • multiple repairs for the same problem (four and five times) without actually fixing the problems; 
  • PVC piping in the home was not primed before glueing which caused the A/C drain line to fail and $2,300 worth of damage to wood floors, ceilings and walls (to include mold); 
  • exteroir wood trim was not properly primed and painted;
  • exterior wood trim on dormers installed improperly butting directly against the surface of the roof (and the ends/joints were not primed or painted) causing wood rot and repair ($450);
  • Stanley Martin refused to hire an engineer or architect to properly diagnise and repair the problems the right way (I hired my own $650)
  • The dryer exhaust pipe was improperly installed in the ceiling (so my flexible dry exhaust pipe runs from behind my dryer up to the ceiling - very unsightly)
  • Drywall installation extremely poor;  drywall tape exposed and peeling away in multiple areas;
  • Stove fan is not vented to the outside (fan just blows smoke and fumes from stove into the kitchen)
  • None of the bare drywall walls were primed before painting
  • Concrete slabs were not properly leveled before installing wood floors (wood flooring has voids)
  • Upstairs guest bathtub was improperly installed/leveled and has cracked ($650 to replace)

• Unsatisfactory Warranty  and Customer Care:
  • The home only came with a 1 year (all inclusive warranty) and a 10 year structural warranty; Stanley Martin should stand by their products and extend the 1 year to a 3 year all inclusive warranty
  • Warranties are not transferrable to subsequent owners (Stanley Martin should stand by their products and extend the warranties to subsequent owners)
  • Stanley Martin Warranty group insists that water intrusion is not a structural warranty issue and not covered by the 10 year part of the warranty;  a professional will tell you that water causes significant structural damage to wood frames, mold and wood destroying insects (all of which will result in structural failure)

Check out all the other issues with Stanley Martin homes and Belmont Bay community below.  You are not alone!

http://answers.yahoo.com/question/index?qid=20080924164344AAxke6E

http://www.brambletonian.net/forums/index.php?showtopic=913&st=0&gopid=187669&#entry187669

http://groups.google.com/group/rwi-consultants?hl=en

http://marviniavecchia.spaces.live.com/blog/

http://groups.yahoo.com/group/leakingbelmontbayhomes/

http://www.hobb.org/index.php

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I am a Soldier in the Army and I will be deploying to Iraq in February. I bought a 2001 Stanley Martin built townhome from the original owner, in Belmont Bay (Woodbridge, VA) the summer of 2006.  Since I moved in, rainwater has been leaking into the house causing thousands of dollars in water intrusion damage, mold, and mildew. Only after I discovered the leak did I learn that the home had been leaking since it was built and the previous owner knew it, but did not disclose it to me.  In fact, the previous owner is now the President of our Homeowner’s Association.  My entire community has been enduring this problem with over 15 other Stanley Martin built homes that leaked when it rained. Stanley Martin attempted to band-aid-fix the problems - sometimes three or four times, many have been successful but some have not.  It’s only a matter of time.  My home has been “repaired” by Stanley Martin at least four times over the last five years, and it still leaks.  Unfortunately Stanley Martin takes the quick, cheap easy way out rather than really fixing the problems.  They don’t hire professional independent engineers who specialize in residential water intrusion, they use poor building materials, they hire unqualified laborers to do the work of professionals, they do not build to the International Residential Code standards, they do not inspect the work and they do not stand by their work. Stanley Martin Corp should not be allowed to build any more homes or buildings in Virginia (or anywhere else in the United States) until they repair the homes they have already built. I know of at least five other Stanley Martin homes that still leak, including mine.  I developed pneumonia shortly after discovering the leaks even though I am very fit and healthy.  My dog Lucy mysteriously became anemic and would have died if I hadn’t spent $1,500 on a blood transfusion and medication.  Anyone buying or renting a home in Belmont Bay must demand the owners pay for an independent water test (test the home for water leaks) and a professional mold and mildew test.  DO NOT SIGN A DISCLAIMER.  DEMAND A DISCLOSURE STATEMENT from the owner as a condition of the sale or rental agreement.    INSIST THEY ANSWER, IN WRITING, IF THE HOME HAS EVER LEAKED.  This applies even if the home is brand new and you’re buying directly from Stanley Martin.  DEMAND A WATER TEST and explicit water intrusion coverage in your warranty!  Marvin Iavecchia mil06@msn.com

Leaking Porches

More Leaking Porches

Leaking Chimneys

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I can’t speak for all who post here, but I think passers by may misunderstand some of where stuff comes from on this board. I don’t think any of us are conspiracy “nuts,” but I could see someone never exposed to this stuff interpreting a lot of things said in that way. Everything is NOT a conspiracy.

I would say builders and all their employees do not specifically set out to rip-off people as a rule, or to build defective homes. The big name builders had two major problems in their goals to maximize profits, even if their intentions started out as legit. In most cases it worked out, but for millions of others it has caused harm and sometimes devastation.

Firstly, even the builders will admit they did not have enough skilled labor to meet the demand of the housing boom. But what they don’t admit is, they built the houses anyway, only hoping the unskilled labor wouldn’t create a lot of defects and construction errors, but knowing otherwise.

Where they became conspiratorial is in how they dealt with the problems primarily caused by the qualified labor shortage. At this point home builders did, with intent, lay down a minefield between themselves and consumers nailed by the resulting defective construction.

They then worsened the situation by lying about their intent to keep inevitably defective construct profitable, using terms like “affordable housing” to block consumer protection. There is a real reason why some of us come off as bitter and disillusioned by the business and consumer protection.

Their second big conspiracy, much more publicized but I think is misunderstood, began when the boom clearly showed signs it was ending. Some of the big builders did not stop building, and thus did things to artificially keep the boom statistically intact. This meant creative financing, often referred to as mortgage fraud today. The general trend was about moving inventory and transferring convoluted loans to the heavily involved investment sector, who were enjoying the profits of the boom effects.

When builders reached a point where they had to lie to protect their financial goals and liabilities, the result was what happens when anyone starts building on a lie. They have to lie more to cover lies. To those caught up in that side of the business, and you can see them scattered all over the Internet, they become interpreted as conspiratorial.

The general distrust of the industry has been well earned, not simply manufactured by distorted thinking. If you’ve watched the industry’s dark side long enough, you begin to notice it has created a universal script to explain, justify, or deny common problems. When you hear the same lines word for word from several builders in different regions of the country about common problems dealing with home builders, even the most trusting person would give pause at the very least, about how that happens.

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