Chinese Drywall - Buying a Home

Author: Allen Martin

As of the writing of this article, there are still many questions left to be answered in relationship to Toxic Chinese drywall. This uncertainty has led many potential buyers to question the home of their dreams.

Estimates are that homes built between 2001 and 2008 could be affected. With so many homes potentially affected by Chinese Drywall, it is no wonder that the market is largely paralyzed. The consequences of purchasing a home that has Chinese drywall problems are huge. For many, it means financial ruin. Homes that were once valued close to one million dollars are now worth a fraction of that, if they are able to be sold at all. Routed from their home, home owners have no choice but to escape to a safer living condition. Suffering from headaches, nose bleeds, and upper respiratory infections, many home owners opt for the comfort of a rental over the home that they own. Others suffer more dramatically. Chronic migraines, insomnia, and dementia have caused doctors to advise their patients to "get out" of their homes.

Rightfully so, potential buyers are terrified.

The absence of the corrosion typical in homes with Chinese Drywall is not, in and of itself, comforting. Homes that are exposed to lower levels of humidity have been slower to show signs of Toxic Chinese drywall. A simple visual certified inspection by a Chinese Drywall Specialist is much like just kicking the front tires of a used car. While obvious signs of corrosion are a good indicator that a home contains Chinese drywall, the fact that those signs are not present is far from a guarantee that the home is free of toxic drywall.

There are a variety of testing options.

Inspection options start with a visual inspection. This inspection searches for outward signs of a problem.

More involved is an air sample test which has been proven to be the least realiable. Variations of air tests have been used for quite some time. These tests involve sampling air from a home and analyzing it for specific compounds. The Consumer Products Safety Commission, who is heading up the government's investigation into toxic drywall DOES NOT recommend these tests.

Yet more involved is material testing. There are several levels of material testing involving different numbers of samples. Because homes were often built partially with Chinese drywall and partially with domestic drywall, it is crucial that all of the drywall in a home be tested to guarantee it free of Chinese Drywall. These test however are quite costly, thus many buyers choose not to use this method.

Chinese Drywall Inspection - Should You Have One?

Author: Anthony Kasek

If you're wondering what to do if you have toxic Chinese drywall, and whether you should have a Certified Chinese drywall inspection, here's some information to help you find out what you need to know.

Toxic Chinese Drywall was used during the housing boom that occurred after the devastating 2005 hurricane season that damaged so many homes in SW Florida cities like Cape Coral, Ft. Myers, Naples and Lehigh Acres. Unfortunately, roughly five hundred million pounds of imported Chinese drywall ended up being toxic.

What are the symptoms for toxic Chinese Drywall? How can you know that you have this flawed building material? What are your options if you find that you do have it installed in your home? These are just some of the questions you might have regarding this toxic dangerous material.

Why is Chinese Drywall a Problem?

From testing at state health departments  and the CPSC it has been discovered that Chinese Drywall contains heavy concentrations of sulfuric and organic compounds, much higher than American made counterparts. The samples tested also contained high levels of strontium sulfide, an ingredient which emits a sulfurous odor.

When exposed to warm, moist air, this rotten egg smell becomes noticeable. While complaints first surfaced in SW Florida, any location with warmth and humidity can fall prey to toxic drywall problems. Your home can be affected by this material. Plus, some defective drywall from China has been found to contain phosphogypsum, a radioactive substance.

Chinese Drywall was first imported into the United States from China in 2001. After the destructive hurricane season in 2005, there was an extreme shortage of American made drywall, and the U.S. was flooded with the imported drywall.

Many homes had to be rebuilt in various locations due to the severe storms experienced throughout the Atlantic as well as the most affected cities in SW Florida. Along with the hosing boom from 2003-2007 the epicenter of the Chinese Drywall disaster seems to have been in Cape Coral, Lehigh Acres and Ft. Myers. There was no choice except to import drywall from China.

How to Tell If You Have Defective Drywall?

There are several ways to check your drywall.

1. The sulfurous smell should be but not always will be prevalent.
2. Any metal in contact with the drywall will be corroded, especially copper. Any wiring will be corroded as well. Corrosion will be black in color.
3. Appliances and electronics will start to fail with no explanation.
4. If the drywall is newer than 2001, it has a strong possibility of being toxic drywall from China.
5. Close examination of the drywall may find Chinese lettering or markings "Made in China".
6. A Chinese drywall inspection by a Certified Chinese Drywall Specialist will find evidence to support the claim.

What Can Be Done If You Have Toxic Drywall?

If you suspect you have toxic drywall installed in your home, you should arrange for a drywall inspection right away. Professionals like the  Chinese Drywall Guys located in Cape Coral can use their experience to determine if this type of drywall was used in your home. You need the peace of mind a professional drywall inspector can bring you.

If your inspection determines that you do have toxic drywall in your home, removing the drywall and replacing it is a given, considering the circumstances.

Many homeowners have filed class action lawsuits against contractors when considering the expense of gutting and rebuilding their homes to date millions of dollars have been awarded to the victims.

A Chinese drywall inspection by a qualified Chinese Drywall Specialist is ultimately the only means to determine if you have this toxic material causing problems in your home.

To find a Qualified Certified Chinese Drywall Inspector, go to - http://chinesedrywallguys.com/.

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U.S. real estate fits the bill for more Canadian buyers

The southern American sun and bargain basement housing prices are beckoning Ryan Deters' father and many other Canadians, who are diving into cross-border real estate in record numbers.

"Someone who's earned an average income over a long time and deserves a little bit of fun in their retirement can still afford something in a warm climate, like Arizona or Florida," said Deters, an associate agent with Co-Operators Insurance in Windsor, who is helping his father look for a home in the U.S.

"There are a lot of properties down there that just kind of fit that bill."

The collapse of the American real estate market over the last few years and the improved value of the Canadian dollar has resulted in a record number of Canadians snapping up severely devalued property south of the border.

Real estate in warmer climates is particularly popular among snowbirds looking for retirement homes, but others are buying for investment purposes, hoping to sell at a large profit as the market improves or to renovate and flip the home.

Darrin Lewis and his business partner Kim Spirou are taking advantage of the demand by opening the Sunshine Property Shop, a new Windsor consulting business that offers advice to would-be American property owners looking for the best deal. Lewis, who has worked with financial institutions on both sides of the border and says he's very familiar with American real estate, said he started the business after being inundated with requests for advice from family and friends considering buying in the U.S.

Lewis's business model is to offer advice on all aspects of the property purchase from start to finish, from finding a place to tax advice. He guarantees clients he'll find savings that are equal or greater than his fees, which can run to about $2,500 for a client looking for a condominium, by negotiating with banks, real estate agents and other people involved in the process.

"There's a need out there. People want to, but they're scared or don't know how to do it," he said. "There's just so much of the unknown. You don't want something to come up that you're not familiar with, you're not aware of and you get taken advantage of."

It's clear from some of the properties on Lewis's watch list that there are also huge bargains to be had.
Among those properties is a two bedroom, two bathroom townhouse in Fort Myers, Fla., that was last sold in 2006 for $195,000 and is now listed at $44,440. A 1,796 square foot house in Scottsdale, Ariz., with four bedrooms and two bathrooms was last sold in 2007 for $390,000 and is now listed at $200,000. A Stuart, Fla., beachfront condo with 1,108 square feet was last sold in 2005 for $485,000 and is now listed at $147,500.

However, it's important not to let the dollar signs lighting up in your eyes blind you from seeing the potential pitfalls. Terry Ritchie, a cross-border financial adviser and author of The Canadian Snowbird in America, said anyone looking to make a quick buck flipping houses may be in for a shock.

"There may be those opportunities, but there may not be quite as many of those as we'd like to believe," he said. "If you want to buy as an investor, then you've got to stay in for the long term."

It's still possible the American real estate market hasn't hit bottom yet, currency fluctuations are hard to predict and it's not easy to do a major renovation on a house in Phoenix from Windsor. Ritchie said the best strategy for buyers who aren't planning on moving in right away is to buy and hold - for years - while renting the property out.

It's also important to be mindful of tax consequences.

For example, some U.S. senators are proposing legislation that would allow Canadian snowbirds who own high-value property to stay for longer than six months. That may be appealing to seniors who want to extend their golf season, but it would mean filing a U.S. tax return and losing Canadian health care.
Lewis said there are other details people might not think to investigate, such as whether the condominium association they're buying into is on the verge of bankruptcy or whether the home contains toxic Chinese Drywall that needs to be removed at a prohibitive expense. In addition, Canadians buying property at foreclosure auctions may find they don't get their bargain property after all if the original owner comes up with the money within six months.

Ritchie said Canadians who don't know where to start should talk to people they know who have already taken the plunge. Research is very important, but try not to get overwhelmed or wait for the perfect time, he said.

"I can't tell you if we've hit bottom and I can't time the dollar. All I can tell you is there are lots of great opportunities to buy."

Chinese Drywall Complaint Center

 

The Chinese Drywall Complaint Center is urging any homeowner in Florida, Alabama, Mississippi, Louisiana, or Southeast Texas, to contact them if their home contains a specific type of toxic Chinese Drywall called Knauf Tianjin.

The group is specifically focused on homeowners in one of these states, who purchased a foreclosure from a bank, or Fannie Mae, only later discover the home contained Knauf Tianjin toxic Chinese Drywall. The group says, “We are no where close to identifying all new, or old homeowners, who are now living in a home, or condominium that contains Knauf Tianjin toxic Chinese Drywall.

We admit this is a Hail Mary, we are not a law firm, this is not an attempt to practice law, but we are the best branded source on Knauf Tianjin toxic Chinese Drywall, and we feel compelled to try to get these homeowners some help, if possible. We are especially focused on homeowners, who purchased a foreclosure in the U.S. Southeast only to discover the home, or condominium contained Knauf Tianjin toxic Chinese Drywall.”

What are the best symptoms for toxic Chinese drywall, and or imported Knauf Tianjin Chinese drywall in 2005-2007 Florida, Louisiana, Alabama, Mississippi, and especially the metro areas of Houston & Austin, or in homes remodeled, or repaired after Hurricanes Katrina, Ivan, Ike, or Rita?

The Chinese Drywall Complaint Center says, “We think repeated AC coil failures, electrical device failures in the home, combined with severe allergy type symptoms are the best indicators. But, our biggest problem is getting the word out-especially in subdivisions, or with individual homeowners, in a house repaired after a hurricane.”

U.S. real estate fits the bill for more Canadian buyers

The southern American sun and bargain basement housing prices are beckoning Ryan Deters' father and many other Canadians, who are diving into cross-border real estate in record numbers.

"Someone who's earned an average income over a long time and deserves a little bit of fun in their retirement can still afford something in a warm climate, like Arizona or Florida," said Deters, an associate agent with Co-Operators Insurance in Windsor, who is helping his father look for a home in the U.S.

"There are a lot of properties down there that just kind of fit that bill."

The collapse of the American real estate market over the last few years and the improved value of the Canadian dollar has resulted in a record number of Canadians snapping up severely devalued property south of the border.

Real estate in warmer climates is particularly popular among snowbirds looking for retirement homes, but others are buying for investment purposes, hoping to sell at a large profit as the market improves or to renovate and flip the home.

Darrin Lewis and his business partner Kim Spirou are taking advantage of the demand by opening the Sunshine Property Shop, a new Windsor consulting business that offers advice to would-be American property owners looking for the best deal. Lewis, who has worked with financial institutions on both sides of the border and says he's very familiar with American real estate, said he started the business after being inundated with requests for advice from family and friends considering buying in the U.S.

Lewis's business model is to offer advice on all aspects of the property purchase from start to finish, from finding a place to tax advice. He guarantees clients he'll find savings that are equal or greater than his fees, which can run to about $2,500 for a client looking for a condominium, by negotiating with banks, real estate agents and other people involved in the process.

"There's a need out there. People want to, but they're scared or don't know how to do it," he said. "There's just so much of the unknown. You don't want something to come up that you're not familiar with, you're not aware of and you get taken advantage of."

It's clear from some of the properties on Lewis's watch list that there are also huge bargains to be had.
Among those properties is a two bedroom, two bathroom townhouse in Fort Myers, Fla., that was last sold in 2006 for $195,000 and is now listed at $44,440. A 1,796 square foot house in Scottsdale, Ariz., with four bedrooms and two bathrooms was last sold in 2007 for $390,000 and is now listed at $200,000. A Stuart, Fla., beachfront condo with 1,108 square feet was last sold in 2005 for $485,000 and is now listed at $147,500.

However, it's important not to let the dollar signs lighting up in your eyes blind you from seeing the potential pitfalls. Terry Ritchie, a cross-border financial adviser and author of The Canadian Snowbird in America, said anyone looking to make a quick buck flipping houses may be in for a shock.

"There may be those opportunities, but there may not be quite as many of those as we'd like to believe," he said. "If you want to buy as an investor, then you've got to stay in for the long term."

It's still possible the American real estate market hasn't hit bottom yet, currency fluctuations are hard to predict and it's not easy to do a major renovation on a house in Phoenix from Windsor. Ritchie said the best strategy for buyers who aren't planning on moving in right away is to buy and hold - for years - while renting the property out.

It's also important to be mindful of tax consequences.

For example, some U.S. senators are proposing legislation that would allow Canadian snowbirds who own high-value property to stay for longer than six months. That may be appealing to seniors who want to extend their golf season, but it would mean filing a U.S. tax return and losing Canadian health care.

Lewis said there are other details people might not think to investigate, such as whether the condominium association they're buying into is on the verge of bankruptcy or whether the home contains toxic Chinese drywall that needs to be removed at a prohibitive expense. In addition, Canadians buying property at foreclosure auctions may find they don't get their bargain property after all if the original owner comes up with the money within six months.

Ritchie said Canadians who don't know where to start should talk to people they know who have already taken the plunge. Research is very important, but try not to get overwhelmed or wait for the perfect time, he said.

"I can't tell you if we've hit bottom and I can't time the dollar. All I can tell you is there are lots of great opportunities to buy."

Up to 300 More Homes to Be Repaired in Knauf Chinese Drywall Settlement

A new settlement has been reached with Knauf Plasterboard Tianjin (KPT) over defective drywall manufactured by the company in China.

The Plaintiffs’ Steering Committee (PSC), the Homebuilder Steering Committee (HSC) and KPT announced that under a new agreement, KPT will partner with select major homebuilders to repair 200 to 300 homes these builders initially constructed with KPT drywall.

This settlement was developed in direct collaboration with the PSC — attorneys appointed by the court to represent affected homeowners — and the HSC — attorneys appointed to represent builders.
The members of the PSC involved in negotiating the agreement include Arnold Levin of Levin, Fishbein, Sedran & Berman; Russ M. Herman of Herman, Herman, Katz & Cotlar, L.L.P.; and Bruce W. Steckler of Baron & Budd, P.C.

Hillarie Bass of Greenberg Traurig LLP, the chair of the HSC, participated for the HSC.
Steckler says the settlement between homebuilders and entities of the Knauf Group could resolve the claims, mostly in Florida, Texas, Louisiana and Mississippi, the Associated Press reported. The settlement involves reimbursements to builders for homes that have been fixed or are being repaired now, and others that are in line to be remediated.

Knauf Plasterboard Tianjin (KPT) agreed in October 2010 to participate in a demonstration remediation program in homes that contain drywall manufactured by KPT. The program is funded by KPT and a number of builders, drywall suppliers, including Interior/Exterior Building Supply L.P., and their insurers.
In addition to the homes participating in this new settlement, more than 1,200 homes are progressing through the KPT demonstration remediation program that was announced as part of the Chinese drywall Multi-District Litigation (MDL) out of New Orleans.

Hundreds of lawsuits have been filed against homebuilders, developers, installers, realtors, brokers, suppliers, importers, exporters, distributors and manufacturers over drywall from China, which was widely imported into the United States between 2004 and 2006.

Because of the commonality of facts in the various cases, litigation concerning the faulty drywall was designated as MDL. In June 2009 all federal cases were consolidated and assigned to Judge Eldon E. Fallon of the U.S. District Court, Eastern District of Louisiana.

Chinese drywall case settled

A settlement outlined Wednesday between a major manufacturer of Chinese-made drywall and homebuilders who used the tainted product in Florida, Texas, Louisiana, and Mississippi could affect 800 to 1,500 homes, attorneys said.

Lawyers called it a significant step toward resolving problems blamed on the drywall in some 10,000 buildings.

Plaintiffs’ lawyer Bruce Steckler said the settlement with the Knauf Group manufacturer involves reimbursements to builders of homes that have been fixed or are being repaired now, and others that are in line to be remediated. He expects U.S. District Judge Eldon Fallon to approve the settlement.

Fallon presides over other cases involving more than 10,000 properties owned by people who blame damage, including corroding plumbing and electrical connections, on defective Chinese-made drywall.
Steckler acknowledged that there is a long way to go in settling the many cases but said the settlement was significant.

“We see now a collaborative and cooperative effort by homebuilders, the plaintiffs and Knauf to fix and repair homes,” he said.

“It’s a piece of the puzzle,” said Russ Herman, head of a committee of attorneys representing plaintiffs in the case. The attorneys noted that more than a thousand other homes are included in an earlier court-approved pilot remediation program involving Knauf.

Herman said German-based Knauf was the maker of tainted drywall at plants in China that wound up in thousands of homes. Chinese-based businesses also provided significant amounts of the material that wound up in U.S. homes.

Chinese drywall in home made daughters' toenails fall off

TAMPA -- When the toenails of Patrick and Ilknur Bradshaw's two young girls fell off this summer, they say their doctor blamed their house.

The Chinese-made drywall damaged their air conditioning unit and appliances, and they think it contributed to a multitude of other health problems. But the toenails were the last straw. They moved out weeks later.
"The doctor recommended we move out as soon as possible," Patrick Bradshaw said. "Now, the house is going to sit here, unlivable."

A month later, the kids' toenails were back, and their respiratory problems were gone.
Thousands in Florida have toxic drywall, imported during the housing boom. While there has been no government link between the building product and health problems, the material emits a sulfur gas, which corrodes metal, smells like rotten eggs and makes homes worthless.

But what makes the Bradshaws' story stand out is the timing. They bought their home in Tampa's Easton Park neighborhood in late 2008 — after the drywall scandal hit the news. That's part of the reason they say they chose to buy a new home instead of one that was a few years older.

"I was happy at the time, thinking, 'Oh, they found the Chinese Drywall problem and so now the builders won't be putting it in houses anymore,' " Patrick Bradshaw said. "It never occurred to us builders could still be using it."

Most of the defective drywall was used during the housing boom, from 2004 to 2007, although some homeowners have reported bad drywall installed years earlier or later. The U.S. Consumer Product Safety Commission reported seeing some cases as late as 2009, although that's not as likely as during the peak years.

Not all cases are dealt with the same way. Some builders have chosen to replace the caustic drywall, some have done nothing, and others went bankrupt, leaving devastated homeowners to pick up the enormous bills.
Homeowners insurance typically doesn't cover defective drywall and often drops insurance policies when homeowners report the bad drywall.

The federal government recommends replacing the drywall. Some homeowners have sued and won individual cases. Some joined class-action suits and won, but didn't get enough to fix their homes. Others are still fighting in court.

Builders say it costs, on average, about $100,000 to replace the drywall in a typical home. The home has to be stripped down to the studs and rebuilt from the inside.

In the Bradshaws' case, their builder, Mobley Homes, doesn't agree that the drywall needs to be replaced.
The couple has ripped out walls to find the "made in China" stamp to prove their drywall is bad. But Mobley lawyer Len Johnson says that doesn't prove anything.

"Not all Chinese drywall is bad," Johnson said.

He said Mobley will offer homeowners, "a fix" for bad drywall, but only if the builder agrees it's bad. He wouldn't elaborate about what kind of "fix" the builder may offer but said it likely would not need to replace all of the drywall in the home.

Mobley said it has fewer than a dozen homes where buyers think they have defective drywall.
In Easton Park, the Bradshaws' next-door neighbor, Danny Dekle, is dealing with drywall issues, too.
"I have the black coils in the air conditioner," Dekle said. "My ground wires are black, I'm just positive I have it."

When the builder told the Bradshaws they don't have a problem, the family hired a private inspector, who took additional samples and advised the Bradshaws to move out.

But first, the neighbors tried to shame the builder by taping signs on their garages, informing passers-by of their troubles.

Mobley tested both homes and said the corrosion is indeed caused by sulfur in the drywall. However, the builder insists there's not enough of it to cause a problem.

"In some homes, you have a mixture," Johnson said. "Some rooms are bad, some are not. If we see there's clearly a problem, we'll offer a fix to the homeowner."

Johnson said the homebuilder plans to offer to retest homes in Easton Park and test drywall for other concerned owners.

A representative for the other builder in Easton Park, MI Homes, said that builder does not currently have homeowners with toxic drywall in the neighborhood.

Local reaction to Chinese drywall suit

 

A  settlement is made in the case of 1,000 homes along the Gulf coast found with Chinese drywall. It's between the manufacturer of the tainted and possibly toxic product and some home builders. However, there are more than 10,000 claims by homeowners still waiting.
Some right here on the Suncoast.

Dory Josephson and her husband Tony say they lived in fear in their own house. Believing smelly toxic fumes having an impact on their home and their health. "I had to wear a charcoal gas mask just to breath in my home."

All a cause they say from Chinese drywall built into their home in 2006. After their builder went bankrupt they've been fighting for a fix from the manufacturer ever since. "We are still waiting to hear from the lawyers."

The Josephsons say they recently spent more than $100,000 of their retirement funds to rid themselves of the tainted drywall. Many like them simply couldn't wait. Getting the product removed on their own. Now hoping to get some of that money back.

Two other homes on their street have also been completely gutted. Thursday we find contractor Chinese Drywall Inspectors who says he's working on eight homes just in this one Venice neighborhood. "I would have never of seen myself having to tear out a perfectly good house. It seems like a giant waste."

He says the concerns are real. "We are finding a lot of corrosion. The wiring is ate up. Even inside of 220 lines the corrosion has spiraled right up the plastic."

Having to rip out and replace everything. Roach says this job makes 50 for his company just in our area. "There are potentially tens of thousands."

A settlement Wednesday between the the manufacturer Knauf Group who made the Josephson's drywall and 1,500 home builders. Dory says they are not doing an celebrating yet but believe they could be next. "It gives us a little hope that as soon as they are done we are probably next in line. We are hoping that."

Some other local residents have found they have Chinese drywall from a different company owned by the Chinese government. Those homeowners say they are even further behind in getting any sort of solution or compensation.