By John Coby

In San Antonio over 25 homeowners have felt the devastation from buying a new home in Texas, this time from Pulte Homes. Pulte merged with Centex in 2008 taking on the liability of these homes that are literally sliding down a hill. This major screw up has received national attention. From the Washington Post.

No one has been injured, but about 80 homes were evacuated on Sunday after a resident in the northwest side subdivision reported that his backyard was sliding down hill. By Monday afternoon, residents in about 55 of those homes were allowed to return after inspections and soil monitoring found them to be safe,

What They Could Lose
No matter how much stabilizing Pulte will do on these foundations, the owners will have a difficult time finding a buyer at a reasonable price. Those in the surrounding area will also feel the impact if these homes remain on the hill. Property values will plummet, buyers will boycott. Who would knowingly risk their life savings and investment in that subdivision?

The homeowners could be in litigation for years while they live in an apartment and paying their mortgage. Or worse they could end up in arbitration with a low ball judgement. Eitherway, it's not good for these families.

What Pulte Should Do
Texas Builders are known for waiting till the media circus is over then low balling the homeowners or just ignoring them until they just give up. If Pulte had any shred of decency, they would buy back the homes on the retaining wall, give the owners moving expenses, and 20% of the home value for inconvenience and let these homeowners move on with their lives. The homes should be leveled, the retaining wall fixed, and a playground or park install on the property.

Blame the Victim
If history is any indication, it will be just a matter of time before the home building industry attacks the homeowners. The Executive Director of the Texas Association of Builders (TAB) has already blamed them for signing a contract with an arbitration clause. Next they might make comments like "They should have known what they were buying." Blaming the victims for buying a new home in Texas is what they do best when confronted with an indefensible issue. Much like blaming a rape victim for walking down the wrong street.

Why Buy From Pulte?
With this Pulte disaster and the lack of consumer protection why would anyone buy a Pulte home in San Antonio or in Texas again? Besides forcing a buyer into binding arbitration for any defects, including sliding off a hill, Pulte has a history of questionable construction. From the KENS TV in San Antonio .

Koenig is not the only one using the Web to document complaints against Pulte. "Poorly Built by Pulte Homes" is a website run by Building Justice, a Washington, D.C.,-based group hoping to unionize Pulte's workforce.

Caryn Klebba, a spokesperson for Pulte and Centex, says the company is aware of such sites.

"Everyone is entitled to state their opinion," she said. "We try to reach out to them and help them. But you can't fix everyone's issues. I think our reputation speaks for itself."

Yes. I think Pulte's reputation does speak for itself.