Is My Drywall Chinese? - HB Litigation Conferences

claims, but it's still a significant problem," said Joe Janssen, a partner at the law
firm of Katzman, Garfinkel, Rosenbaum in Fort Lauderdale, who represents
plaintiffs in a Chinese drywall class action suit. "The real tragedy is for people
who are upside down on their home, can't afford to have it fixed, and can't sell it
because it's contaminated. Those people are in purgatory."
Purgatory's prisoners can't afford to rent new homes while attorneys sort through
the issues, either. It could take years to settle the competing legal claims and for
federal authorities to arrive at definitive conclusions. The prospect has prompted
some families to move out of their homes and let the bank foreclose on the
property.
An amendment to the Mortgage Reform and Anti-Predatory Lending Act the
House passed earlier this month requires the Secretary of Housing and Urban
Development to study the effects of Chinese drywall on foreclosures and the
availability of property insurance for affected homes.
"It is critical that we address this problem swiftly to avoid devastating results in
our communities and long-term effects on the health and well-being of our
families," said Florida Rep. Mario Diaz-Balart.
Ryan says the banks don't want the Chinese drywall homes either. The material,
he said, gives the term "toxic asset" a new meaning. Ryan is working with
lenders to arrange abatements. So far, only HSBC has agreed to work with the
affected homeowners.
"HSBC has agreed to give our clients a three-month reprieve and not to report
the missed payments to the credit agency," Ryan says. "This is not a matter of
creditworthiness. It's a matter of health and safety. I think once other banks
understand that we need to work together to save communities, we can begin to
make some progress here for the victims."