Tag Archives: foreclosure

Your Frickin’ Frackin’ HOA Rights!

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guest blog by Deborah Goonan

Did you know that when you purchase a home — either new construction or resale — you might not own the rights to mineral resources beneath that home? If not, then you must take the time to read Reuters 2013 Special Report: US Builders hoard mineral rights under new homes, linked below.(1)

It may seem unbelievable, and might never have crossed your mind, that the builder of your home would write into the deed and sale agreement that mineral rights would not convey to the homeowner. What this means is that if there should be oil, gas, gold, or any other valuable resource lurking in the soil beneath your home, you would have NO rights to compensation for withdrawal of those resources. In fact, whoever holds those mineral rights — be it the developer or an energy company that has acquired those rights from the Developer — has the legal right to drill under your property and take those minerals, whether you like it or not. And because you don’t own these rights, you won’t be making any money on the deal, even though you’ll assume all the risks involved during the drilling or “fracking” process that is sweeping across the country.

And quite often, the developer does not openly disclose that the buyer gives up property rights, including mineral rights. Most buyers find out either at closing or thereafter. The fact that most new construction is part of a homeowners’ association makes it easy for the builders to bundle these mineral rights and then lease or sell them to a third party, often without the homeowners’ knowledge or explicit consent.

Below, you can follow links to two June 2015 reports on fracking: one from the EPA concluding that contamination of water supplies is “isolated,” (2) and another news release from the University of Pittsburgh, citing a study of the correlation between proximity of pregnant women to fracking activity and lower birth weights of their babies (3). But there are literally hundreds of news reports, and dozens of studies have been done on the subject. The oil and gas industry and the EPA tend to downplay the risks, while environmental activists tend to play up exposure to human health risks as a result of air, soil, and groundwater pollution.

For all of these reasons, when homeowners in North Carolina and Florida became aware of developer mineral rights hoarding practice, they demanded action from their Attorneys General. In both states, homebuilder DR Horton agreed to return mineral rights to homeowners in 2013. (4)

In Colorado, developers such as Lennar have incorporated mineral rights companies (5) as subsidiaries of their homebuilding corporation. In Weld County, drilling activity has been going on for several years just outside of Rinn Valley HOA. A 2011 report features Rinn Valley homeowners who have lived through the noise and disturbance of gigantic heavy equipment during the 24/7 drilling process, within 500 feet of their back yard. Now homeowners have to contend with unsightly tanks and round-the-clock trucks that collect gas, oil, and wastewater and haul it away. It’s way more intrusive than most homeowners ever imagined. (6)

Plus, there may be hidden risks. A CBS report on Colorado’s 2013 flooding highlights flood waters wreaking havoc on tanks at drill sites – tanks containing oil and toxic chemicals used in the fracking process. (7) Some of those tanks sat mighty close to Rinn Valley. Could fracking activity, combined with flood damage, have played a role in soil and foundation problems for Rinn Valley homeowners, where Lennar is currently involved in construction defect disputes? Maybe. Maybe not. Hopefully there will be some competent experts working on behalf of homeowners to determine the extent and cause of these defects.

As a home buyer, the best way to protect your interests is to thoroughly research the developer and to hire a competent real estate attorney to represent your interests from the point you sign a sale agreement through closing. Your attorney can examine the deed and provide title insurance, disclosing any irregularities to you before you get to the closing table with the moving van already packed to the gills. Do not allow the developer’s or mortgage lender’s title company to represent you at closing!

References:

1 Reuters Special Report: US Builders hoard mineral rights under new homes

2 EPA study shows Marcellus Shale fracking doesn’t cause widespread water pollution

3 Study cites lower birth weights near fracking – Pitt health study finds correlation

4 DR Horton Returns Homeowners’ Mineral Rights

5 Lennar Colorado Minerals LLC incorporate 2011

6 Gas drilling and fracking occurred adjacent to Rinn Valley Ranch (2011)

7 CBS News report on Colorado flooding and its effects on fracking sites (Video)

 

Oh, That Sinking Feeling When Your Builder Walks Away!

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guest blog by Deborah Goonan

Let’s face it. There is no shortage of construction defect reports for many homes built in the past decade, and Colorado homeowners seem to have more than their share of shoddy construction.

The focus in the news lately has been on condominiums, with city leaders bucking state law to go around legal protections for homeowners, claiming that if they do not ease up on construction standards, developers won’t be able to build enough “affordable” condos for first-time buyers.

Well, here’s a story of apparent construction defects affecting some pricey single family homes on the outskirts of Frederick, roughly 30 miles north of Denver. It seems Dr. Robert Landry, a veterinarian, his wife and two small children have had to move out of their home. Landry alleges that the family’s Lennar-built “forever home” is uninhabitable, because the foundation is sinking into soft soil, allowing moisture and mold build up, buckling wood floors, and kitchen counters pulling away from the walls.

The homeowner hired an engineer to examine the foundation and crawl space, and to conduct soil testing. The results of recent soil tests indicate that the soil is too soft to support construction of a home. Lennar claims that soil testing done in 2006 indicated a drastically different soil composition that was deemed suitable for construction.

However, in 2013, Colorado saw historic flooding, and Weld County – where Landry’s home is located – was particularly hard hit. Additionally, Frederick has a history of coal mining activity, and in recent years, nearby land has become the site of oil and gas drilling, and the controversial practice of fracking. (the subject of another blog) Several of Landry’s neighbors report similar damage to their homes.

A Google search of Lennar Homes in Frederick indicates the company is no longer building homes in Rinn Valley HOA, the site of Landry’s home. Landry has approached the Town of Frederick and the HOA for assistance, before bringing his story to local media.

Landry contends that new soil testing should have been done following the 2013 floods, prior to breaking ground on his home and others nearby. He questions why the Town of Frederick approved construction and issued occupancy permits for homes built on shifting soils, particularly without drilling deep piers into bedrock to support their foundations. The inspection officer admits that the Town’s policy is to simply accept the Developer’s reports, signed by the builder’s own engineers.

This is common practice in many states – the local government’s development planning officials are mostly paper pushers. As long as the Developer files the required reports with signatures, the project is good to go. And many site inspections are either conducted by the Developer’s chosen experts, or, if conducted by the city or county, such inspections are cursory at best.

In other words, as a home buyer, no one is looking out for your interests.

To add insult to injury, the Attorney hired by Landry says that it is impossible for homeowners to sue Lennar, because the Developer requires arbitration to settle construction defect disputes. Those consumer-hostile terms were written into the sales contracts for all homebuyers. (Similar terms are most likely written into the governing documents for the homeowners association, with regard to defects that occur in the common areas.)

Landry and his neighbors hope to convince Lennar to buy back their homes, so they can move on with their lives.

Source articles and video:

(homeowner blames builder for sinking house)

(earlier report, Shifting Soil Damages Brand New Home in Frederick)

(March 2015, Dr. Robert Landry asks for assistance from Town of Frederick with Rinn Valley homes)

(Rinn Valley Ranch HOA)

Little Free Library Must Go Says The HOA!

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guest blog by Nila Ridings

Jennifer Fontanilla of Stockton, California had no idea she could not erect a Little Free Library in her front yard. Well, let’s say she had no idea her LeBaron Estates Owners Association could prohibit her from keeping the Little Free Library she won and then erected.

It’s got a bright yellow door and gives the impression literacy is just tempting inquiring minds of the young and old to open it. Take a peek inside. Find something interesting. And take it home to read.

OMG! What if there was a copy of Neighbors At War The Creepy Case Against Your Homeowners Association by Ward Lucas in there? What if Miss Jennifer and her neighbors learned the TRUTH about the risks of owning in the HOA? What if they came across this website and read these blogs about abusive bullies on the HOA boards? What if she has no idea the board members can spend massive amounts of money to drag her into a lawsuit, a jury trial, and foreclose and take her home and life’s savings? All because she was providing FREE BOOKS to her neighbors to READ! Tell me dear readers, has there ever been a greater sin?!?!

The Little Free Library movement has gone global. To me, it’s a wonderful thing. I’ve been known to put books in the ones in my area, but NONE OF THEM ARE IN MY HOA! I would love to build one and fill it with books. But I know I would have to figure out a way to live in it because my HOA would definitely foreclose and take my townhouse if a Little Free Library appeared anywhere near here.

The ignorance in America continues to grow. Shouldn’t we be willing to do anything possible to encourage learning? Are we really this stupid to believe a Little Free Library across the street is going to depreciate property values? And are we willing to pay dues so a bunch of bullies can sue the neighbor that has a Little Free Library that most everybody enjoys?

When will we stand up and say, ENOUGH IS ENOUGH?

Jennifer Fontanilla has another ‘hearing’ about this issue on July 14th. Can we figure out a way to show our support for her from all across America?

A special thank you to Record staff writer, Nicolas Filipas for exposing more insanity from a California HOA.

(link to Little Free Library story)

http://www.recordnet.com/article/20150703/NEWS/150709883#ReaderReaction

‘Charlie Chairs’ Placed By Neighbors Who Care

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guest blog by Nila Ridings

North Houston Texas has a street named Azalea Lane. This street not only has a beautiful name, but it is lined with houses filled with beautiful people. They understand what being a good neighbor is all about and Charlie their neighbor with leukemia and his wife are the recipients of their kindness and neighborly love.

Reading this story warmed my heart and made my eyes tear up. And the comments made by thousands of people after reading this story (now spreading around the internet) clearly shows that others miss the neighborhoods of yesteryear that resembled Charlie’s neighborhood.

HOAs have destroyed today’s neighborhoods. For every 1 story like Charlie’s, I hear 1,000 stories of HOA neighborhoods that are war zones! Neighbors targeting neighbors and board members bullying those they dislike is what neighborhoods have become with HOAs.

“Chairs For Charlie” would bring fines, liens, and foreclosures to neighbors in many modern day HOAs. The legal bills would run into the hundreds of thousands of dollars, and the Charlie Chairs would be confiscated for evidence of neighbors violating those precious CC&Rs.

As I watched the video I loved the difference of chairs with the welcoming signs on them for Charlie. The other things that caught my attention were the baby swing in the tree, the address sign at the street, and the iron bridge over the drainage ditch. And that told me this neighborhood was not part of the 350,000 “matchy matchy” HOAs now poisoning American home ownership. After living in an HOA for a decade I have such an appreciation for those little things that give the homeowners the pleasure of living in their homes as they wish. Not one of them looked trashy to me. I see them more as priceless homes where families live free and have big hearts and express love for their neighbors.

Do any of our readers know if Charlie’s cancer is in remission? I sure hope so.

 

 

Wild Corruption In Nevada!!!

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OK folks! I’ve been an investigative reporter for forty years. And during that time thousands upon thousands of documents have been released to me. Oh, there’ve been two or three that were held back, but always because of some extraneous circumstance usually relating to a name a prosecutor or a judge wanted held back for personal or political reasons. And we usually found a higher judge who ordered the documents released.

But Damn it! Political reasons don’t apply here! Personal reasons don’t apply.  Nevada homeowners lost hundreds of millions of dollars when this organized crime ring crashed Homeowners Associations all over Nevada. Property values there still haven’t recovered. It wasn’t just a few dozen homeowners who were hurt in this monstrous scam. Millions were hurt. Taxpayers paid for this years-long investigation. Families went broke. Many lost their homes. Lives were lost. People killed themselves.

Who are you trying to protect by illegally keeping these files secret? A scummy judge who was able to escape indictment? Perhaps a scummy bigtime politician who, with his son, have become multi-millionaires investing in phony land deals based on illegal insider knowledge about housing trends in Nevada?

You found 100 “people of interest” in this case, but didn’t prosecute them because you thought it would be too expensive? Isn’t that a sneaky way of letting your friends and political boosters off the hook? Wouldn’t a thorough vetting of this whole slimy affair be a way for you to crawl out this greasy morass?

Federal Judge Mahan, there’s a lot you ought to be ashamed of including the awesome lack of meaningful prison time you handed out to these mobsters.

Now, you should be ashamed of letting your political cronies talk you into not releasing documents that you feel might shame your pathetic state and your miserable bench even further. I’ve learned over the years that when something doesn’t smell right, you start looking for the source. Something real close to where you’re standing, Judge Mahan, doesn’t smell just right.

(crooked lawyer gets ten years for swindling homeowners)