Earlier today I saw a story from Florida about a major builder which identified defective drywall used in hundreds of homes (thus far).
The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?
If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?
All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?
How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?
We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.
This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.
Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.
It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.
And while we are at it, who inspected these homes????
Ten Pairs of Books for Christmas
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