Homeowners Must Urge Banks to Ease Financial Burdens

Chinese drywall victims struggling with foreclosure and other financial troubles should take a more forceful approach to protect their assets. Although Florida’s interim Emergency Manager is requesting some financial help, for now homeowners must fight their own battles with pen and paper in hand and a strong voice demanding action from their insurance companies and government officials.

Without doubt, many families living in homes built with Chinese drywall have been increasingly drowning in financial troubles. With health concerns weighing on them, they left their homes to rent safer places. But the burdens of paying home mortgages and rent have been too much to bear. More and more of these homeowners are going into foreclosure and losing their biggest assets. The federal government has urged banks and financial institutions that received government bailout money to ease the burden, but none have complied. Now, homeowners who want to save their homes, must take a more forceful approach.

Toxic drywall has been linked to major health problems in adults and children, including allergies, chronic colds, nosebleeds. Families wanted out of these toxic environments, but their moves have come at very high cost – possibly foreclosure. Recently, the federal government passed a resolution (H.Con.Res.197) in an effort to assist homeowners in this tragedy and to protect them if they had to move from their homes and rent at other locations. The resolution urged banks and mortgage servicers to work with families affected by contaminated drywall to allow temporary forbearance without penalty on payments on their home mortgages. Unfortunately, it’s just a resolution, and not a law.

Sen. Bill Nelson also wrote a letter to Timothy F. Geithner (Geithner Letter), secretary for the Department of the Treasury, and demanded that “mortgage refinancing and modification programs to take into account the specific situation [Chinese drywall] faced by these homeowners.”  He also requested that Secretary Geithner reach out “to mortgage lenders in the areas [affected by Chinese drywall] and urge them to help impacted homeowners.”  He noted that “many of the lenders have received substantial amounts of taxpayer-funded TARP subsidies – and to date have done little to nothing to help impacted homeowners and taxpayers hard hit by this crisis.” If you are affected by Chinese drywall and can’t pay both your mortgage and rent on the place where you’re living, and then your mortgage is in danger of going into default, we suggest you do the following: 

• You or your attorney should write a letter to your bank or lending institution. Here is an example of a letter we have written to banks on our clients’ behalf (Senator Nelson sample letter).
• In the letter, cite the correspondence from Sen. Nelson to Timothy F. Geithner.
• Cite the resolution that was passed (House Resolution).
• Give the bank a due date to respond to your letter and send it by certified mail.
• If the due date passes and you get no response from the bank or lending institution, write a letter to Sen. Nelson explaining that these institutions are turning a blind eye to your situation. Encourage him to get involved with your particular case or work to pass a law that can help you.