Thread: Only in California

Buyers Sue Production Home Builders Over Dropping Home Values - Legal Issues, Home Prices - Builder Magazine

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This is the part which will get the builders in the most trouble.

(underlining and bold are mine)

“What we believe is that, for the people who were qualified to buy these homes and were financed by the builder themselves through their mortgage companies, there is an obligation from the builder to let them know the facts that could materially affect the value of their homes,” McCune said.

The lawsuits allege that builders’ practice in recent years of controlling every step of the home buying process, through appraisals and issuing loans through their finance companies, created an environment where there was no “neutral party” who didn’t have a stake in the deal. Plus, McCune said, the fact that the mortgage companies knew the details of buyers finances bolsters the allegations that the builder companies had to know there could be problems with foreclosures and buyers walking in the future.

The builders wanted the whole enchilada, not they have to clean up after eating it all.

I am not saying that the lawsuit is right or does or does not have basis, only that the builders, by their controlling nature to keep all of the money, also kept all of the liability.

I am . . . saying that . . . the builders, by their controlling nature to keep all of the money, also kept all of the liability

JP: Yes, and they deserve whatever they get in the way of judgements against them.

Originally Posted by A.D. Miller

JP: Yes, and they deserve whatever they get in the way of judgements against them.

About time.
I still cannot figure out how they can now build a home starting in the $70s when 5 years ago the same home started in the $170s.