Next Call To Action For Victims Of Chinese Drywall: Credit/Mortgage Protection

What the taxpayers giveth…the taxpayers can taketh away!

One of the main concerns that victims of Chinese drywall have is how do I survive this crisis financially.  In the short term, this concern manifests itself in the form of, “How do I pay my mortgage?”  How do I pay my mortgage and also afford to pay additional living expenses so my children do not get sick?  How do I pay my mortgage and move my family out of a toxic home?  How do I pay the mortgage on my investment property when my renters walk away from the lease because the home is toxic?

We hear this complaint over and over.  We hear this complaint from folks who have excellent credit ratings, people that pay their bills and their taxes, people who are truly concerned about their credit and their reputation.  Hardworking people who have earned every dollar they have earned.  Honorable,  productive taxpayers who are now caught in the middle of a catastrophe.

These are victims who are willing to fight for their homes, fight for their credit ratings, and fight for their reputation.  However, the one thing these victims need is simply time to fight for justice.  In order for most of these victims to survive this crisis, they are going to need a recovery from a civil litigation in order to be made somewhat whole.  Unfortunately, civil litigation takes time.  While these cases are pending, homeowners are faced with the decision to either stay in a toxic home or face foreclosure.  While these cases are pending people who have invested in homes are faced with renters who are leaving and, as a result, no ability to pay the mortgage on the investment home.

There is a better solution for the banks and for the homeowners.  Banks simply do not want to foreclose on homes that contain Chinese drywall - you talk about a real toxic asset.  They would be far better served to agree to allow these homeowners to defer these payments until the lawsuit is over.  Once the lawsuit is over, the homeowner can repair the home and move back in.  They will begin to make timely payments - as most historically have - and the bank will once again have the collateral they bargained for.  This would be a “win / win” scenario instead of a “lose / lose” scenario.

However, there is an even more basic reason for why banks should help victims of Chinese drywall.  It’s their turn to help.  When the banks that hold these mortgages were in trouble and on the brink of collapse, who came to their aid??  The American taxpayer did. The hardworking people who paid their bills and paid their taxes did.  The same people who are victims of Chinese drywall.  The banks must remember where these governmental funds came from - the American taxpayer.  Now that these same taxpayers need some assistance - the bank should return the favor.

Recently, Senator Bill Nelson, a leading advocate for victims of Chinese drywall and someone who our firm has personally spoken to about this tragedy, wrote a letter to the Secretary for the Department of the Treasury, Timothy F. Geithner, wherein he 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.”  (A copy of the letter from Senator Bill Nelson dated July 28, 2009, is attached as Exhibit 1).

Despite this strongly worded letter, these banks and lending institutions have turned a deaf ear to these victims.  Nothing short of Federal legislation will protect victims of Chinese drywall from the greedy banks.  Should banks be allowed to reap the profits from interest on loans, when the people who bailed them out suffer?  This is simply not justice.

Therefore, the law firm of Roberts & Durkee is helping to organize victims of Chinese drywall to actively support the resolutions that were passed yesterday in both the U.S. House and Senate “encouraging banks and mortgage services to temporarily waive mortgage payments for homeowners whose homes have Chinese drywall.”  Call your Senators and your Representative to the U.S. House of Representatives and let them know that you support these resolutions.  Also, tell them that there needs to be a law that states clearly and unequivocally that all banks that received funds from the taxpayers of the United States of America must immediately waive mortgage payments for homeowners whose homes have Chinese drywall.  This should be a law - not just a resolution.  We need to demand action - not simply suggest it.