The Arbitration Factor....

(Walter has come to one of his clients to ask him to loan him the money for the house, the client, Benny, played by Billy Lombardo, who is acting like a child over the whole episode, he was 17 at the time he did the movie)

Walter: There is a house I want to buy.
Benny: Lets just cut to the chase, Okay? What do you want?
Walter: I want you to loan me $200,000 in cash.
Benny: No.
Walter: Benny!
Benny: You shout at me?
Walter: I shout at you! I need that money and you are going to loan it to me.
Benny: No, I wont!
Walter: Yes, you will!
Benny: No, No, No!
Walter: Yes, you will! I saved you ten times that in taxes last year.
Benny: So what?
Walter: Benny, if you dont loan me that money. Ill...
Benny: Youll what? Huh? Youll what?
Walter: Ill... not like you any more!
Benny: ...All right.
Walter: Thanks.

Okay, all joking aside.....this is a serious issue facing all homeowners, but especially those buying directly from a large builder.....

Have you ever really read your closing documents on your home mortgage loan....you know, the ones you signed here, initial here and here and here and oh, you missed one, right here....and sign this....

This being the Arbitration Document....if you don't know what this is, please educate yourself in your area on your state mandated codes and statutes on arbitration...in a nutshell here is what it is.....

When there is a dispute after the closing, buyers and sellers can choose to arbitrate or litigate for a resolution. By signing the arbitration form, you give up your right to litigate and agree to binding arbitration. Though parties can hire an attorney to assist them with the process, they cannot take their
case to a court; they must file a request for arbitration. After the arbitrator makes a ruling, all parties MUST comply with the findings of the arbitrator."

...if you do not pay mind to this you could end up in a situation like these fine folks have.....

http://www.gosanangelo.com/news/2010/apr/17/building-frustration/

This home is located in the newest portion of the development that was added to the one where we live.....albeit that area was added about 10 years ago....while their home is not that old....what happened to them is a travesty and the fact that the builder/lawmakers did nothing for 2 years, not until they added their story to the Homeowners of Texas website.... should be criminal in the least.

And now....well, now there is an article about the Montgomeries in our small local paper....and their home...which has danger signs on it and "this house is going to be torn down" signs and lists the builder on the front windows..... sits....abandoned....the homes next to it and across from it, up for lease, for sale.....I would not want to be the house next door.....

Ironically enough, I remember our realtor NOT showing us homes in the Bluffs area of our Town because he said that they will fall down because of the soil....I did not at the time pay any attention to this since I knew he knew the area very well.....I suppose someone should have pointed that out to the buyers of all those homes....you know, like maybe THEIR REALTOR.....since they know for a fact that that specific area had a huge expansive soil problem....and apparently so did the lot where this house was built within walking distance to ours.

Scott Montgomerie on the condition of the lot:

After some research, Scott Montgomerie said he found the report on a September 2004 hydrogeologic evaluation study the city had done on water drainage problems in the Southland Park Subdivision, the Montgomeries’ neighborhood. It examined the reasons why water oozed up out of the ground, soil conditions and drainage problems — and focused particular attention on the lot where the Montgomeries’ house eventually was built, Scott Montgomerie said.

What baffles me about this is that per the San Angelo Standard times, the building commission states that soil sample testing is required per the building code, but no one had to provide that they had done it....so you have this code that is bound city wide but no one has to show proof....so I assume a builder can just lie.....because if he doesn't have to show proof, I'm pretty sure no one would hold him/her accountable for the proof they say they had....since it probably was never completed, because why do that....if NO ONE IS GOING TO FLIPPIN CHECK?....and this is responsible law making in what capacity.....face it, we live in an OIL RICH area, deep pockets and long relationships make being an outsider/newcomer difficult when you have Mount Everest in which to scale to have anyone pay attention to you....those pockets must have either gotten a hole in them, or the drycleaner reported the hole! But its still just a tiny hole.....in order to open this issue up, you need a hole along the lines of the GRAND CANYON!

Because of the arbitration document signed during closing, you can not sue the builder, you must arbitrate, the arbitrators themselves are usually in the same business and need no mediation training....so who comes out on top...usually the dude who can fill those deep pockets.....the tail kicker, you can NOT file an appeal of this decision.....

I am very glad this has come to light in an other way here locally....well other when I pass the Montgomeries' house, seeing this beautiful neighborhood, this beautiful house torn to shreds....and the pain the owners have had to endure.... The subdivision for the most part has no issues, but if it does.....I pray for those who buy it.

HAVE THE SOIL TESTED!!!! ALWAYS!!! ESPECIALLY IN TEXAS!

Arbitration....learn about it....know about it....educate yourself....you do not have to sign this document and if they say you do, don"t just walk away, RUN AWAY AS FAST AND FAR AS YOU CAN!

~TRW (the renovation wife)