Cindy S

The American Dream Is Overbought and Overbuilt

One factor in this that's not often covered is that many of the new houses are not built very well, and will probably need replacing soon. Maybe that was part of the plan (of the industry)? I've seen estimates of what percent of new homes have serious defects that range from 15% (Consumer Reports), to over 90% (PATH). When I pass new developments I can see some shortcuts builders are taking, industry-wide, that will certainly contribute to the early demise, or expensive repairs, of these homes. We already have a "disposable housing" mentality (just as we do with all products). Just look at the number of non-defective older homes that were torn down to make way for McMansions. The irony, I guess, is that the McMansions are even more temporary, due to shoddy construction. On a slightly different topic, I believe the industry gloom and doom is just the industry angling for a federal bail out of some kind. Whether it's to urge the feds to lower interest rates and loosen lending guidelines again, or an actual bailout, I don't know. But I do not believe the industry would admit there's anything wrong unless there was an agenda behind it. They still aren't admitting to the shoddy construction.

The Real Reason to Avoid Homebuilders

www.boston.com/news/lo.../ Agent admits inventing sales

The Real Reason to Avoid Homebuilders

Two articles from Realty Times you might find interesting:

Older article on fraud: realtytimes.com/rtcpag...

Newer article on problems with using builder's in house mtg co: realtytimes.com/rtcpag...

Recent article from RISMEDIA about title kickbacks: rismedia.com/index.php.../

The Real Reason to Avoid Homebuilders

I agree w/Michael Church's article. It's astounding to me that the activities in the housing industry have escaped those who invest in it. Are they not looking or do they not want to see?

E.g., KB Home, the builder now under SEC investigation, was fined millionls, previously, by the FTC and HUD. They are not the only builder doing these things, but they've been in the news the most about getting caught. Many homeowners complain about predatory lending, seriously shoddy construction, breach of warranty, dishonest practices, etc, going on in real estate. But unless banks are hurt, law enforcement often looks the other way. Another example, the F. Jeffrey Miller case that only this year resulted in indictments. Check this news page for more examples: www.hadd.com/dailynews...

As for real estate agents being stripped of their license, I have certainly read of it happening. I don't believe that people look for this, or even know WHERE to look for this, unless they find themselves embroiled in a dispute of their own, and refuse to take it lying down.

Same goes for homebuilder complaints, bribing appraisers to make the value come in higher, title insurance investigations, IRS crackdowns on down payment assistance programs that are not charities but money-laundering vehicles for sellers and builders, etc.

Way to go, Mr. Church! GREAT article.