Carolyn Kapus-Deer  

 

 

7240 Muirfield Dr
Dublin, OH 43017

ph: 614-961-2380

News And Events

Moldy house costs builder $3 million
Monday,  May 12, 2008 3:17 AM
THE COLUMBUS DISPATCH
A tarp covers a hole where the builders tore off part of this Reynoldsburg home's stucco exterior but never repaired it."
In Reynoldsburg, it's known as the $3 million house.

 

But it has nothing to do with the home's value or amenities.

In fact, the house has been empty for more than two years. A blue tarp covers a hole where the builders tore off part of the stucco exterior but never repaired it. Inside, mold thrives.

Roman and Jennifer Cosner paid $219,000 for the new home in the Slate Ridge subdivision in March 2005. They had high hopes.

"We were looking forward to a new house with no issues where we didn't have to do anything," said Mr. Cosner. He had his hands full running his dog day-care business.

The Cosners were swayed by a one-year warranty and promises in Maronda Homes' sales literature, which extolled quality materials and skilled workmanship.

What they got was a house riddled with deficiencies and mold that sickened Mrs. Cosner and the Cosners' son, Roman Jr., forcing them to leave.

"It's one of those stories that you'd never believe if you haven't lived it," Mr. Cosner said.

In February, a Franklin County Common Pleas Court jury agreed that Maronda Homes had turned the American dream into the Cosners' nightmare.

The judge awarded the Cosners $2.2 million in compensatory damages -- triple the original jury award -- because jurors found that Maronda Homes had violated Ohio's Consumer Sales Practices Act by acting in an "unfair, deceptive or unconscionable" manner. Jurors tacked on an additional $1 million in punitive damages.

Maronda Homes, in a prepared statement, calls the verdict "a complete miscarriage of justice." The Cosners prevented Maronda from making repairs, the statement says. During the trial, the company says, it was denied the right to have a critical witness testify and the judge tripled the award, which is inconsistent with the jury's findings.

"Maronda is disappointed with the outcome of this case and it is continuing to explore all of its legal options," the statement said.

If the company appeals, it might be years before the Cosners see any money.

On Friday, visiting Judge Dale A. Crawford ordered that Maronda pay almost $700,000 more in attorney fees if the judgment stands.

Roman Cosner said the family didn't want to go to court.

"This is not what we asked for," he said. "We just wanted the house fixed."

Maronda Homes has staked its reputation on providing the largest home at the lowest possible price, according to the Homebuyer's Advocate, a Web site run by Mike Marshall, who represents real-estate buyers. The quality of the company's developments varies from site to site, Marshall said.

J.D. Power & Associates, in a report released in September 2007, found that Maronda rated third out of nine major developers in central Ohio for new-home quality. Maronda ranked ninth for customer service and design. The Ohio attorney general's office has fielded 12 complaints about Maronda since January 2007. During the same period, larger developers such as Dominion Homes had 12 complaints and M/I Homes 13.

The Reynoldsburg Building Department signed off on the Cosners' home when it was finished in 2004, according to Chet Hopper, department chief.

But the south side of the house was not attached to the foundation and was inadequately attached on three sides. The wrong windows were used, which caused leaks, and the exterior waterproofing and drainage around the house were done improperly, court records show.

As a result, water seeped in and mold grew on the basement walls, in the heating and air-conditioning system and on the floors. Testing showed extremely high levels of a toxic mold in the basement, said attorney Daniel Mordarski.

The first sign of trouble came soon after a rainstorm, when the Cosners noticed water cascading down the inside of their garage wall. Then there were puddles on the basement floor.

As the problems piled up, Maronda Homes refused to fix the problems and treated the Cosners with "hatred and ill will," the family contends.

The Cosners at one point put a sign in their yard that said: "Moldy Maronda Home." The company sued them for defamation.

A Maronda official told Mrs. Cosner that she had toxic mold in her house, instructed them to move out and said the company would pay their expenses. That's when the crew tore off the stucco on the house's south side.

But Maronda never paid the lodging bills, nor did the company fix the problems.

In fact, Mrs. Cosner testified that during a meeting in her basement, a company official asked how the problems could be fixed. A worker nodded toward her and said: "We just need to get rid of that problem."

Mrs. Cosner was hoarse, and Roman Jr., who is now 8, was missing school because he was ill. When they moved out of the house and into a motel, they recovered, they say.

The Cosners have moved to another house in Gahanna. They have a "For Sale" sign in front of their problem house, on which they haven't made a payment in months. Mr. Cosner said he has learned from the experience to be wary.

"I know a lot more now. When I bought the new house, I relied on them."

jwoods@dispatch.com

"I know a lot more now. When I bought the new house, I relied on them."

Roman Cosner
dissatisfied homebuyer

 

 

Washington Report: Low-Cost "Gap" Financing
by Kenneth R. Harney

Capitol Hill is buzzing over a surprise proposal last week from a top federal banking official to provide low-cost "gap" financing to home owners stuck with loans that were unaffordable from the start.

The plan comes from FDIC chairman Sheila Bair, and coincides with House and Senate negotiations to use the FHA as the prime federal vehicle to assist troubled homeowners.

Ms. Bair's concept would sidestep FHA and turn the Treasury into a gap financing resource to reduce struggling homeowners' principal balances by as much as 20 percent for the next five years.

The program would be limited to borrowers who could qualify for reduced fixed rate payments at an affordable 35 percent debt-to-income ratio and are committed to staying in their homes and avoiding foreclosure.

The FDIC says the program would not cost the Treasury anything because participating lenders would pay five years worth of interest costs up front to the FDIC on the gap financing. After that, borrowers would pay interest -- at low Treasury borrowing rates -- for the balance of the term of the mortgage.

The FDIC gap loan would receive super lien status -- its debt would be paid off before the lender's in the event of a sale or foreclosure.

Here's an example provided by FDIC on how the concept would work: Say a borrower took out a "2/28" ARM that now has a $200,000 balance at 8 percent. Current principal, interest, taxes and insurance come to $1,744. With a monthly household income of $3,500 the loan is unaffordable because the owner's debt-to-income ratio is about 50 percent.

Under the FDIC plan, the mortgage lender would apply for a gap loan from the FDIC on the borrower's behalf to reduce the current mortgage balance to $160,000 at a fixed rate of 5.8 percent. The lender would pay the first five years of interest on the $40,000 in gap financing to the FDIC in advance.

This would allow the borrower to pay a more affordable $1,222 a month on $160,000 -- a 35 percent debt-to-income ratio -- and to pay no interest on the gap loan during the first five years.

Starting in year six, the homeowner would have to begin paying off the FDIC loan at an extra $235 a month.

The idea, says Bair, is to leverage low Treasury borrowing rates to help certain borrowers get over the hump and into smarter, fixed-rate loans.

The plan wouldn't help everybody, she agrees, but it could help up to 1 million homeowners who don't quite fit into any of the relief plans currently being crafted on Capitol Hill.

We'll keep you posted.


Copyright © 2008 Realty Times. All Rights Reserved.

 

  • Last year was the third highest number of sales ever in Central Ohio. Yes, it was down 4.5% from 2005 and the average sale price is down a `whopping' 1%, but it was still a good year. Today, compared to 2004, only 3 years ago, we have sold close to the same number of houses and the average sales price is up nearly 3%.
  • Inventory levels are at record highs providing prospective home buyers with the best selection of homes in the history of central Ohio!
  • Central Ohio home values have increased almost 33 percent in the last decade and the average home sale prices have increased on average 3.65 percent each year from 1996 through 2006. For consumers looking for long-term and stable growth rates, real estate is still, hands down, their number one choice.
  • Our home prices are very competitive. Right now, there are more homes for sale than buyers to buy them. The result is that sellers are pricing their homes to compete. As the market corrects itself, home prices will start to increase again. So, buyers should act now while homes are priced to sell!!!
  • There are still many great loan programs for deserving buyers.
  • The recent Fed cut is good news! Even though a Fed rate cut doesn't necessarily spell lower mortgage rates, it does mean good news for housing. The recent half point cut was intended to induce lenders to say yes more often -- especially to jumbo borrowers, who have applied for mortgages greater than the conforming limit of $417,000. Making borrowing more affordable will make money more available and this will have a positive affect on the housing market.
  • So, in a nutshell, all market indicators show that now is a great time to buy -- prices are down, interest rates are affordable, there are lots of homes to choose from and your buyers can bargain with sellers.

 

Four Tips for Home Sellers in a Sluggish Market

By Peggy Boehm

August 8, 2007

Basic considerations and improvements can make a big difference

Everyone has a different take on the state of the real estate market. Some experts say prices will drop more, some say they'll flatten, while others say they'll increase slightly this year.

Because real estate rates are determined locally, it's possible for all three scenarios to take place.

According to the September 2006 report by the National Association of Realtors, The Housing Bubble and Its Implications for the Economy, "The inventory of unsold homes on the market is at an all-time high of 3.9 million, which is a 40 percent rise from a year ago."

Sellers need to be savvier and more strategic in order to sell their home within a shorter time frame and at a good price.

Consider these four points when selling your home.

1. Know Your Home's Worth

Don't rely on real estate websites alone for home valuations. While instant home valuations are fun to use, they are based on past home sales and use computer formula that do not necessarily reflect current market trends. Your best bet is to get a Comparative Market Analysis (CMA), a professional assessment of your property's value, from your real estate agent. With a CMA in hand, you are prepared to set your list price.

Once you've settled on a list price, have your agent reevaluate it every couple of weeks to stay current. If you don't get any interest or offers within the first three weeks, your asking price might be unrealistic and should be adjusted.

2. Condition Counts

Quirky fixer uppers are a thing of the past. Today's home buyer is all about instant gratification, and the last thing he or she wants to do is move into a house that requires immediate cleaning or repair. The best thing you can do as a seller is to present your home to potential buyers in the very best possible light.

To present your home at its best, repaint tired and dirty walls, thoroughly clean all carpets, flooring and windows, and update front landscaping. Organize and update kitchens and bathrooms, the most problematic areas of a home. Make sure all kitchen and bath appliances and plumbing are in good working order.

A home in a less-than-sparkling condition can suggest a desperate seller and may yield a smaller profit.

3. Cover Part of the Buyer's Costs

A generous overture can make you more attractive to potential buyers. Offering to pay some of the buyer's closing costs, funding a portion of the buyer's financing, or paying for inspections or repairs that reduce the buyer's out-of-pocket expenses can help distinguish you and your home from the competition.

4. Enlist Expert Help

Go pro on your home sale by hiring a qualified real estate agent to do the job. An experienced, local real estate agent will be your best resource in helping you to meet your real estate goals in this unpredictable housing market.

When paired with the results of your own research, information provided by your local real estate agent can help you decide if selling your home now is the right thing to do.

  • Compare and interview several experienced, licensed real estate agents who specialize in your market area.
  • Ask for each agent's recent success stories in your particular market.
  • Contact and interview the agent's former customers.

Remember to go with the agent who has been successful in your local real estate market and whose experience, marketing approach, commission rate, personality and business manner best suit your own style.

© 2007 HomeGain, Inc.

 

7240 Muirfield Dr
Dublin, OH 43017

ph: 614-961-2380