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Need to walk from repaired Toxic Chinese Drywall home in Florida

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by hibiscus8, Apr 13, 2009.

  1. hibiscus8

    hibiscus8 LoanSafe Member

    I have a home in Florida built and bought in 2006 that is probably now worth (had it not had toxic chinese drywall) what is owed on it, maybe 10 grand less. Right now it is being "repaired" for the problem by the builder, while they rented a place for us.

    When it is done, probably by July, it will loose even more value in this rapidly declining market ( SW Florida) AND even if someone was interested in buying it, they would surely expect a deep discount for it being a repaired home.

    We do not want to move back into it when it is finished, as the builder is leaving very contaminated plywood up, to re drywall over, along with plans to re-install very contaminated wood cabinets in the kitchen and all of the bathrooms. Never mind that the wood studs, trusses and block being left are also contaminated. My family and I were made very sick by the toxic gasses the bad drywall was emmitting while living there.

    Even in our rental, the furniture has been so contaminated, it continues to cause exposure symptoms.

    We can afford the payments if we moved back in to that toxic waste dump that has nothing but the memories of being attacked by invisable demons (host of toxic sulphur compounds, including hydrogen sulfide) while in it.

    These homes to be properly remedied should be bulldozed and rebuilt. If that turns out to be the official word on this housing disaster now facing 41 U.S. states and aproximately 100,000 homes, our home will be worthless after the builder is done replacing the drywall.

    Making payments on it seems like putting good money after bad, and we won't be able to afford to do that if we choose to not move back in, not wanting to further increase our exposure to the toxic gasses left by contaminated materials the builder will leave behind.

    However, we make to much to qualify for Chapter 7, and Chapter 13 sounds really gray. We have spoken with 3 different attorneys on it already and they all give conflicting information on how to go about it and are vague on how it can turn out.

    Our goal is to protect our income, while wiping our hands with the lender Wells Fargo, and the mortgage.

    It is sounding like, in Chapter 13, we may very well be forced to pay a deficiiecy judgment, at whatever it turns out to be, when Wells fargo would foreclose on it, which could be 4 years (really backlogged here) from now when the house may be worth nothing to half of what we owe on it -$490,000.

    We put 20% $125,000 down, and another $125,000 in upgrades after we moved in and already lost all of that to the market, on top of over $50,000 in contaminated furniture that needs to be headed for the dump.

    Our American dream turned into a nightmare, all because we bought a home built with toxic drywall our government let into the country from China, that a desparate builders subcontracters chose to use during a shortage of U.S. drywall.

    We can not sue the builder to buy the home back, because it would be years for a class action to get settled, and those in the class will be lucky to get 10% of their losses when all is said and done. The builder made an offer to move us out all expenses paid while they "repaired" it, to their satisfaction. Our health was so bad, we had to accept the offer just to get out of there. We had no where else to go.

    Are we doubled screwed to paying a 6 digit deficiency via Chapter 13 or does anyone else see a better way out of this toxic nightmare for us????

    I wish we could just hand the keys over to Wells Fargo and be done with it and try to get our life and health back.

    Tens of thousands in Florida are in the same boat.

    Are we better off not making payments starting now and letting the bank know that we do not want the home, nor will we be living there?

    Should we try to sell it while not making payments while renting elsewhere and see what happens?

    We don't care about wreaking our good credit at this point. We also never want to own a home again. Talk about the system getting it's hooks in you. :(

    We just want the bleeding to stop ASAP and for our income to stay protected.

    We will be consulting with many more attorneys trying get clear on what filing for Chapter 13 would look like. Seems our case confuses them because we are one of the rare few who do not want to keep or live in a toxic home forever marred with the stigma of it having had toxic chinese drywall.

    Has anyone in Florida used 13 to walk from a home?

    Is there a better way?
  2. helpinNE

    helpinNE LoanSafe Member

    Wow. Talk about a nightmare, your family is living it. I am so sorry all this has happened to you. I hope you all regain your health after being out of the home.
    Do you know how much longer it will take for the builder to complete its 'repairs' on the home?
    I would not jump into BK just yet. I would even consider joining the class action suit if it will not cost you money out of pocket, even if it will take several years to get any money out of them.
    The problem with Flordia is it is a recousre state, however, due to the toxic drywall issue, I doubt Wells Fargo wants the house back.
    I would stop making payments, save up as much money as you can for a future settlement with WF shoud they come after you for a deficiency judgement.
    I would also talk to a realtor experienced in short sales. You have to be up front with all potiental buyers about the toxic drywall but you can tell them the builders removed it and replaced it with new. Attempting a short sale would be in your best interest because it would migigate your possible future liability to WF. Short Sales can be hard to get through but if you have only one mortgage company that many make it easier.
    I would not file BK until after the foreclosure is complete, assuming you are not able to sell it first. I would wait to see what WF does in your case.
    Best of luck! Do what is best for your family and your health.
  3. markmc2000

    markmc2000 LoanSafe Member

    Sorry to hear your situation. Short sale may be a good option with the drywall card to play as a hardship. You can even throw in the funiture with the sale! good luck
  4. hibiscus8

    hibiscus8 LoanSafe Member

    Thank you helpinNE. It helps to hear how others would tackle this one.

    Filing for BK isn't an option though because of our current income.

    From what little I am able to learn about Chap 13, we could be stuck paying a large DJ by the time WF would get around to auctioning it off in a declining market. I also just learned that you have to pay another 10% to the trustee that handles the restructing payments. Great! More people getting thier hooks (slimy claws) into us for the next 5 years.

    I'm wondering if I were to get 3 appraisals done at the time the builder finishes (Julyish) and use that in a Chapter 13, if it would help the judge to go lighter on a DJ. We also have proof that we tried to sell last year when the home was far above water. Our income dropped and we wanted to do the right thing and downsize before it went under water or he lost his job with this lousy economic down turn.

    Within a few weeks, we had to pull the listing when we learned the home had toxic chinese drywall, to do the right thing- figure out how to get it made right before it was sold to someone else.

    The builder says according to their "experts" ( bought and paid for liars), what contaminated material they are leaving behind, is fine and that we wouldn't even have to disclose the repair when we sold. It's not fine for us to be around. They are scum.
    We may have to PAY for an attorney to make them stick with their contract that says, all effected materials will be replaced.

    The contract we signed to get moved out and have the place repaired, does not allow us to sue them for anything related to the home repair once they declare it finished.

    I have to look into seeing if we can get in on a class action for our damaged/contaminated furnishings, health suffering, and loss of value on the home due to the stigma of it being a repaired toxic drywall home.

    Of course we would fully disclose the extent of the repair. I'd be comfortable with it, if they would just remove all of the plywood and replace the cabinets as they said they would, before they pulled a fast one on the spec sheet.

    I do greatly appreciate any feed back. The Hydrogen Sulfide I was huffing for years while being a stay at home mom, and that I continue to while my head is pounding from what is coming off of my office furniture, is a neuro toxin. It also mimics oxygen in the blood and causes oxygen deprivation. One of the symptoms is chronic mental fog, confusion, migraines and short term memory loss.

    It has become very difficult to think straight and clear on this. Lord knows what permanent brain damage has been done. Not to mention, the sulphuric acid oozing off the contaminated wood furniture in the office has my throat burning something fierce. This furniture has been out of the home for over a month now and it is still that bad.

    I can't even sell any of my furniture in good conscious. The income dropped to where we can just make ends meet comfortably while paying down credit cards, and we would have to go further in debt replacing all of the furniture. A few weeks ago, my daughter and i had to flee from the rental for a night because the contaminated furniture was causing our lungs to fill with fluids and we lost our voices.

    My husband, who travels a lot, angrily told me I could dump all of my furniture in the river, but that I would have to sit and sleep on milk crates because he isn't spending any more money on furniture. Most of what we have is within 3 years new and it wasn't cheap. It is easier for him to beleive, our health problems are all in our heads, then to face, he has been working his ass off to buy his family a beautiful toxic home that is destroying us.

    Most everything we have and have worked so hard for has become worthless.

    We have replaced the contaminated furnishings in the childrens rooms.

    The financial losses over chinese drywall are making my husband go MAD, and the health impact on my family is tearing me apart. So many wars over health vs money. These health vs money arguments are going on in all of the chinese drywall homes.

    I don't know how to make it stop without it costing us years more of blood sweat and tears, or further deterioration to health, and or my marriage.

    Right now, besides fighting with the builder for them to do the right thing with the home repair, if they screw us, I am mostly wanting to learn more about what a Chapter 13 for someone who does not want the home, with Wells Fargo as the lender, would look like. If we are paying rent elsewhere that is safe to be in, after the builder is done, we will not also be able to make the mortgage payment.

    I am reading terrible things about WF at the WF sucks blog site.

    It looks like no matter what, the next 5 years of our life will continue to be full of anxiety, frustration, more financial losses and BS all because the government let builders sell toxic homes made in china with buyers having no way to be aware of it.

    We want to wash our hands with this so bad, we are even considering having my husband quit his good job just so we can file a chapter 7. We just want to wake up from the nightmare that has it's hooks in us at every turn.

    This country sucks as it seems those who play by the rules and want to do the right thing get screwed the worst for doing so. It seems the only way to survive here is to not play by the rules and do the wrong thing.

    I just want to move to a beach and sell coconuts.

    Hopefully, if we are moved out of the place, WF will speed up the foreclosure process which can help shorten the deficiency gap by the time an auction comes. I hear they are terrible with accepting short sale offers and would rather take a huge loss on the loan at our greater deficiency owed expense.
  5. hibiscus8

    hibiscus8 LoanSafe Member

    Thanks for the good wishes. We need them.

    As I am learning from other sites, Wells Fargo doesn't seem to want to accept short sale offers, while giving people the run around with excuses of lost paper work ect. , especially any that will be deeply discounted because of the repair disclosure.

    As of now, it looks like that is our only option as when people ask for Deed in Lieu, WF asks you to try to sell short first. And, we'll have to cough up more to do a FSBO, to cut on realtor commisions to close the defiecny gap best we can, as with our income, I don't see how we are going to get out of paying the deficiency.

    Though selling it furnished could help with getting a better price ( I thought of it) if some one elderly, or young, or with allergies or chemical sensitivities moved in, I do not think my conscious could handle what they may suffer from it.

    Besides, this issue is covered in a our local news pretty much every day, with many people making claims of contaminated furnishings. If we have it in the disclosure that it was repaired for chinese drywall, it doesn't take much to figure out that we were trying to unload contaminated furniture with the house to get a better price for it.

    I'll take the financial hits before I allow anyone else to be made sick from this chinese toxic waste being dumped off here in america.

    Time for me to get out some more e-mails to the politicians on this.......

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