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KB Homes Infomercial - Remembering Mortgage Fraud
 Cisneros partner in Lago Vista was Bruce Karatz,
highest paid CEO in the country with $232 million compensation package. Karatz:…realize how easy it is to buy…
How broad the qualification is… It’s a life changing experience that we create.
 
View Ex-HUD Secretary HenryCisneros KB Home Infomercial

KB Home to Buy Back Homes
Wednesday, 26 February 2003

Homeowners may get relief from KB Home 
A bitter battle over the quality of some new homes on the far West Side may be resolved by an offer from the builder, KB Home, to purchase the houses back from their current owners. KB officials released a letter from the firm's in-house counsel Tuesday that advises an attorney retained by three homeowners in the Tara West Subdivision of the repurchase option... Council members Enrique Barrera, Enrique "Kike" Martin and Nora Herrera looked at problems in the homes Tuesday and came away convinced the deficiencies were severe. Mayor Ed Garza said he, too, examined the homeowners' claims last weekend and became convinced a buyback by KB Home was the only appropriate response.   

Homeowners may get relief from KB Home 


 
San Antonio Express-News  02/26/2003 
A bitter battle over the quality of some new homes on the far West Side may be resolved by an offer from the builder, KB Home, to purchase the houses back from their current owners. 

KB officials released a letter from the firm's in-house counsel Tuesday that advises an attorney retained by three homeowners in the Tara West Subdivision of the repurchase option. The letter's release came on the same day that three City Council members toured KB houses in Tara West near Potranco Road and Richland Hills Drive. 

The letter, from KB Home's vice president of legal affairs in Texas, Victor Toledo, gives the homeowners three options: repair the home at the builder's expense, receive a sum from KB Home that equals repair costs or have KB Home repurchase the house if the homeowner believes the defect cannot be repaired. 

Aaron Seaman, KB Home's public affairs director, said buybacks are offered under very limited circumstances and often are rejected by homeowners in favor of home repairs. 

But KB Home decided that "if that's what it takes to make (the homeowner) happy, let's do it," Seaman said. 

Two of the Tara West homeowners who led the tours Tuesday to show council members the problems were not aware of the builder's offer but were interested in looking at the details. 

"I hope it's true," said Roberto Rodriquez, an aircraft electrician who, 14 months ago, purchased his four-bedroom home for $104,000 and has been battling with the builder over leaking windows, loose door frames and ceilings that are separating from the walls, leaving gaps of more than half an inch. "I just want them to buy it back and let me get out of here and get on with my life." 

Pedro Martinez, a bank analyst, has experienced similar problems at his 20-month-old, 1,560-square-foot home nearby. He also has had to contend with a brick facade to his home that creaks and feels weak when pushed. 

He, too, has demanded a buyback from KB Home but said Tuesday that he needed to study the offer more closely. 

If the payback offer is less than the $107,000 he paid for the home, Martinez said, it may not be a viable solution. 

The letter, which company officials said was written last week, was sent to an attorney retained by Martinez, Rodriguez and one other Tara West homeowner. 

But Janet Ahmad, president of HomeOwners for Better Building, a San Antonio-based activist group that has targeted city building inspection practices and KB Home for frequent criticism, said she believes the buyback promise is misleading. 

"I don't see them buying it back based on their prior behavior," Ahmad said. 

Seaman said the offer had been made only to the three homeowners who had retained Robert Collins to represent them in pursuing legal claims against KB Home but could be expanded to include other homeowners in Tara West who are encountering similar problems. 

Seaman said about 22 homeowners in the subdivision had contacted the builder about structural problems, but less than half of those had problems that deserved more attention. 

Problems in the area stem from a clay soil that expands and contracts with changing weather conditions, Seaman said. He said record rains last summer may have destabilized the soil. But the builder believes the houses can be fixed without lowering their value. 

Council members Enrique Barrera, Enrique "Kike" Martin and Nora Herrera looked at problems in the homes Tuesday and came away convinced the deficiencies were severe. 

Mayor Ed Garza said he, too, examined the homeowners' claims last weekend and became convinced a buyback by KB Home was the only appropriate response. 

 


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Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Consumer Affairs Builder Complaints

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

 KB Home Federal Housing Scam
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Case of the Crooked House

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The housing bubble, in four chapters
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Homebuilders helped fuel the housing crisis
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TRCC AN ARRESTING EXPERIENCE
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Build it right the first time
An interview with Janet Ahmad

HUD's Broken System
From HUD's Deregulation to Disgrace
Did HUD Secretary Cisneros
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KB Home Bombs
KB Goes Unpunished for Building Community on Bombs
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Respond to complaints
HUD Fines KB Home$3.2M
FTC Fines KB Home $2M


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 WFAA's Bryan Harris Investigates KB Home & Bombs

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KB Home Builds on Bombs
(10/7/2005 No Transcript available)
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