HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform

1981 - 2015 HUD's
Legacy of Scandals

HOBB-Over 1M visits monthly
Daily Visitors Over 37,000
 Highest Daily 70,723

Main Menu
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
We have 1 guest online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

Property Rights Denied!
Protecting HOA Members' Rights is NOT The #1 Priority
of Managed Communities
The High Price of Managed Living, Books and Records Hidden
gives appearances of impropriety
Editorial Feature: Part One - Are Homeowners' Rights a Myth? 

Part Two: HOA Bureaucrats Overstep Their Authority

Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Wednesday, 16 November 2016

Trump says, Court System.  What Court System?  Only Builder Forced Arbitration!
In that speech, Trump asked members of the audience to raise their hands if they have been involved in any "frivolous" lawsuits. Few did, apparently, because Trump then said, "That's all? Not that many. Seriously? They're just embarrassed to raise their hands." But it also might be because — counter to Trump's suggestion that homeowners should be able to sue if the construction is shoddy — oftentimes homeowners are pushed to sign contracts with the builders that bar them from filing lawsuits. Instead, they're forced into third-party arbitration, which may not be appealed and is often kept confidential. 

As Homeowners Complained, Donald Trump Slammed 'Frivolous' Lawsuits
By Brian Ross, Cindy Galli and CHO PARK

Then-candidate Trump speaks to home builders in Miami, Florida in August 2016.
Click Photo to Watch Video

Under Donald Trump's administration, the already uphill battle new homeowners say they face when taking on builders over allegedly shoddy and unacceptable work could become even steeper.

    "You know a lot of the problems that you have are judicial, lawsuits. I know the problems that you have," Trump told the National Association of Home Builders in August. "You build a beautiful house, and sometimes you make mistakes, OK? And sometimes you build a lousy house, OK? And they should sue you. But I know the people, many of the people in this room, you're professionals. You build great products. You have a tremendous problem with the court system ... So we're going to make sure that, you know, that a lot of the things that are happening to you just can't happen."

    Trump, who also said that construction regulations for homebuilders are "horrible," spoke as some homeowners across the country say they are struggling with major homebuilders to fix big problems in brand new homes, as an ABC News "Nightline" investigation found.

    In that speech, Trump asked members of the audience to raise their hands if they have been involved in any "frivolous" lawsuits. Few did, apparently, because Trump then said, "That's all? Not that many. Seriously? They're just embarrassed to raise their hands."

    But it also might be because — counter to Trump's suggestion that homeowners should be able to sue if the construction is shoddy — oftentimes homeowners are pushed to sign contracts with the builders that bar them from filing lawsuits. Instead, they're forced into third-party arbitration, which may not be appealed and is often kept confidential.

    Homebuilders' Forced Arbitration Clause

    Vickie Pynchon, an attorney who served for years as an arbitrator in construction defect cases, said that the system is advantageous to the homebuilders, who help keep the arbitrators in business.

    "[Homebuilders] like arbitration because it favors them," Pynchon told ABC News. "The secret deck is stacked against the homeowner."

    After the "Nightline" investigation into the challenges homeowners face when trying to fix allegedly poorly constructed houses, Sen. Al Franken, D-Minn., a longtime critic of mandatory arbitration in other areas, said the laws should make things easier, not harder, for homeowners.

    "When you're wronged in America, you should be able to seek justice through the legal system. But because of mandatory forced arbitration, little clauses buried in the fine print of contracts that you and I sign all the time, Americans are unknowingly signing away their rights," he said. "Now it's disturbing to see that these unfair agreements are reportedly being used by some large homebuilders to ice out homeowners who have been wronged."

    One recent court case could signal a big change in favor of home buyers. In South Carolina, the state Supreme Court ruled in July that a mandatory arbitration clause in a homebuilder's contract was "unconscionable" and "unenforceable," allowing members of a local family to proceed with suing their builder in court over problems with their home.

    An attorney for the family, Philip Segui, said prospective homeowners often don't realize what they're getting into when mandatory arbitration is part of the contract they sign.

    "They're almost always very surprised when we have that conversation that we're going to have to potentially go to arbitration," he said. "We have to explain it to them that their constitutional right to a jury has been waived and there's not going to be 12 people that may be able to relate to their situation making the decision anymore. It's going to be some preselected third person that we hope will make the right decision."

    However, homebuilders, along with the American Arbitration Association (AAA), maintain that arbitration is a fair and efficient way for homebuilders and homeowners to come to a relatively speedy solution without further clogging America's overburdened court system.

    "Like all Americans, I'm concerned with the increase in litigation," said Jerry Howard, the CEO of the National Association of Home Builders. "I think that, in the end, arbitration is more efficient and more cost effective for everybody."

    The AAA said in a statement to ABC News that its statistics say fewer than half of arbitration cases proceed to an award before they're otherwise settled and when they go to an award, the homeowners are identified as the "prevailing party" a little more than half the time.

    So many disputes arise, Howard said, in part because homeowners' expectations can be too high.

    "I think the American consumer expects a perfect home. There's no such thing as a perfect home, and so I think that there are often disputes that arise out of that," he said.

    Howard said he believes American homes that are being built now are "up to the standards that they are held to legally and beyond that."

    As for the perfect president, Howard said his group was just looking for a candidate who is "pro-housing."

    "We want candidates who recognize the importance that the housing sector and the homebuilding sector place in the economy are rolled both in the economics of the United States but also in the social fabric of the country," he said. "And we judge candidates not according to their partisan stripe but whether or not they are housers."

    ABC News' Kalyn Wilson and Lizzie Yang contributed to this report.

    CLICK HERE to see the full "Nightline" investigation New Home Heartbreak

    Next >

     Texas, First Home Lemon Law Debated in the Nation
    Homebuyers Need a Home Lemon Law

    Search HOBB.org

     Beware of HOA Payment Plan! 

    HOA Foreclosures Big Business 
    ON THE COMMONS with Shu Bartholomew
    Dr. Evan McKenzie HOA Governments

    Reckless Endangerment

    Outsized Ambition, Greed and
    Corruption Led to
    Economic Armageddon

    Barnes & Noble

    Rise and Fall of Predatory Lending and Housing

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

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

    Pulte-Centex $900 Million Grant
    Bad Guys at Countrywide Profit on Mortgage Toxins

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

    Washington Post
    The housing bubble, in four chapters
    BusinessWeek Special Reports
    Bonfire of the Builders
    Homebuilders helped fuel the housing crisis
    Housing: That Sinking Feeling

    Arbitration Fairness Now!
    Sen Feingold, Rep Johnson
    Introduce Consumer Justice
    Senate Passes Franken
    Binding Arbitration Amendment
    Public Citizen Report 
    Home Court Advantage

     (See photos) & Latest News

    Judiciary & Civil Jurisprudence
     Arbitration Hearing,
    Video of Homeowners
    Testimony Advance to 1:55

    Arbitration Bill Passes Senate
    Four years to fight to get in court is not a day in Court, Jamie Leigh Jones 



    Texas Regulates Homebuyers
    Texas Comptroller Condemns TRCC Builder Protection Agency
    TRCC is the punishment phase of homeownership in Texas

    HOBB Update Messages

    Consumer Affairs Builder Complaints

     TRCC Implosion
     TRCC Shut Down
     Sunset Report

    As Goes Texas So Goes the Nation
    Knowledge and Financial Responsibility are still Optional for Texas Home Builders

    TRCC from Bad to Worse
    Case of the Crooked House

    Perry's Gifts Keep on Talking
    Sun Never Sets On Politicians Taking Homebuilder Money

    The Pat and Bob Egert Building & TRCC Experience 

    Homebuilder's Right-To-Repair Illusion

    Builders Looking for Federal Handouts

    How Texas Home Building Industry shaped the TRCC to regulate buyers 

    LiveTalk Internet

    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
     Mastermind Predatory Lending?

    Take Action
    Ban Binding Mandatory Arbitration

    Send a message urging your Congressman to support all legislation banning this unfair practice

    Voting Texas Style
    What Lawmaker is Voting for you?

    Most Read

     Give Me Back My Rights Campaign
    Model State Arbitration Legislation
    Fair Homebuyer Contract Model

    Bad Binding Arbitration Experience?
    This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
    or call 1-210-402-6800

    Homebuyers' Bill of Rights
    Tips for a Better Built Home and to Protect Your Investment

    Drum Major Institute
    for Public Policy

    Tort Deform
    Report Your Arbitration Experience

    Homebuilding Texas Style
    And the walls came
    tumblin' down

     Texas Homebuilder
    Bob Perry Political Contributions

      The Agency Bob Perry Built
     TRCC Connection News
    Tort Reform

    NPR Interview - Perry's
    Political influence movement.
    Click to listen 

    Texas Homebuyers
    Fight for Rights

    TRCC Abolish or Fix
    or Pass Home Lemon Law
    Homebuyers Bill of Rights

    82% would not vote back in office any legislator, regardless of party, that is soft on bad homebuilders?


    Have you seen any of these individuals

    Pulte Homeowner Survey
    Warranty & Mortgage Experience
     Click to participate

    Tort Reform Feature
    Texas Monthly
     Hurt? Injured? Need a Lawyer? Too Bad!

    Special Money Report
    Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
    Read More
    Read Report: Big Money…
    Home Builder Money Source of Influence

    Letters to the Editor
    Write your letters to the Editor

    Homeowner Websites

    top of page

    © 2024 HomeOwners for Better Building
    Joomla! is Free Software released under the GNU/GPL License.