Last year the Vice President of a major title company was in town to talk about the state of our local housing market. He started off by asking, why is there so much litigation with siding in the Northwest.
If you live anywhere in the Portland area you have likely seen whole housing developments with their siding removed in the last few years. Apparently homes built in the last 12 years or so weren’t done according the siding manufacturer’s instructions.
I don’t know if it is because builder’s foremans got lazy or what but it seems like the majority of developments have gone through or are about to go through some litigation due to construction defects or improper installation. Why it isn’t all over the country I don’t know.
Almost every time I have a client interested in a newer home I ask about any litigation and really hope it’s over. If not then there is a good chance it is coming, and it is near impossible these days to get a loan while litigaton is pending.
While the HOA may win the lawsuit agains the builder’s insurance there is often an out of pocket retainer for the lawyers. If they don’t have that in reserves then they have to give an assessment to the homeonwners hoping they have the money.
What can also happen is that the lawyers win and then they have to get paid and there might not be enough money left over. This creates another assessment. I have had two clients successfully flee those situations.
So you can’t buy one and you can’t sell one and if you’re lucky they have already gone through it. Here’s to hoping you don’t have to go through it.
