Couple Sues R/E Developer over their own dumb mistake

[Heimdhal]

The level of stupid never ceases to amaze me. This is a story about a planned community thats just a couple miles away from where we live. I never understood why anyone would want to live there in the first place, but this particular story is even worse. If you notice at the bottom of the article the "purchased home value" and the "current value".........

Heres the ARticle:

http://www.palmbeachpost.com/money/real-estate/boynton-beach-newlyweds-sue-developer-saying-it-allowed-626261.html

Newly wed and planning for children, Jonathon and Brandy Miller thought they were buying into Mayberry.

Instead, the Boynton Beach couple say they live in a development ravaged by flippers.

First a ghost town of vacant properties, they complain their community of three-story town homes is now overrun by "irreverent transients" who park erratically, leave trashcans perpetually curbside, throw loud parties, install unsightly and unauthorized satellite dishes, and fail to pick up after free-roaming dogs.

They blame developer K. Hovnanian for letting it happen.

And the Millers, who bought pre-construction in 2004, want their money back.

In a lawsuit filed this month in Palm Beach County Circuit Court, the Millers say sales agents told them the new Firenze development on Congress Avenue was going to be a "warm," family-friendly neighborhood of homeowners.

At the same time, however, agents were selling multiple properties to individual investors.

Also, despite contractual language to discourage flipping, the lawsuit claims the Tuscan-style Firenze homes were bought and sold unchecked during the real estate "go-go" days.

As the boom went bust, the couple claims investors scrambled to find buyers for the vacant homes. When that failed, they rented, or walked away.

"We just feel like we've been wronged," said Jonathon Miller, 32, who paid $359,326 for the home. "We were misled when we purchased it and we finally just got fed up and had to take some sort of action to address it."

Miller is an attorney with Wicker, Smith, O'Hara, McCoy & Ford in Fort Lauderdale, the same firm handling his case. His wife is the executive director of a non-profit group.

In 2006, the couple moved into their new 1,890-square-foot home.

Just days later, the lawsuit claims, their "unbeknownst and unthinkable nightmare began."

Transient neighbors shuffle in and out. The exercise room was burglarized. The clubhouse remains locked for fear of vandalism. Landscaping deteriorated.

Mark Hodges, Southeast Florida division president for New Jersey-based K. Hovnanian, said the lawsuit is unfounded.

"K. Hovnanian has in this case, and in all matters relating to contracts into which we enter, acted in full compliance with those contracts and within the laws of the state of Florida," he said. "Our integrity is well-established and our commitment to fair dealings in all our pursuits is uncompromising."

The 230-home Firenze development is part of a larger community called Renaissance Commons near the Boynton Beach Mall.

The community was originally developed and marketed by Illinois-based Town & Country Homes, which was acquired by Hovnanian Enterprises, Inc., in 2005.

Real estate analyst Jack McCabe, of McCabe Research and Consulting in Deerfield, said he's never heard of a lawsuit similar to the one brought by the Millers. He's skeptical of its merit.

"There are an awful lot of people grasping at straws, trying to avoid financial ruin for poor real estate decisions made during the boom," McCabe said.

But Attorney Eric Glazer of Glazer & Associates, disagrees, saying the Miller's might have a case if community-governing contracts were broken.

Glazer agreed the suit is unusual.

"That doesn't mean it's not a good cause of action," he said.

According to the lawsuit, Firenze sales contracts forbid pre-construction buyers to sell homes before closing on the title. It also says the buyer's intent must be to retain ownership of the home for a period of at least 18 months.

But the Millers say many buyers never intended to keep the homes for 18 months.

An executive of the property management firm hired to oversee Firenze bought a home in the community and listed it for sale just eight days later.

The homeowner's association, while still under rule by the developer, approved the sale of a home for $520,000, which had just been purchased 57 days earlier for $386,985. The property was foreclosed on in 2008.

In fact, the lawsuit claims of 157 lots that closed in 2005 and 2006, 50 percent were listed for resale within the first 18 months.

By 2007, K. Hovnanian was advertising the "Deal of the Century" sale, trying to get rid of deeply discounted homes at sites nationwide, including Firenze.

Staff writer Jane Musgrave contributed to this story.


--------------------------------------------------------------------------------

Home purchase price: $359,326
Total current market value: $166,000
Of 30 homes in the Millers' direct vicinity, 22 list the owner's mailing address as different from the property.

************************************************** ********************************

[silver_surfer]

Sounds like they overpaid for a house.
Now they are trying to sue to get there money back on their mistake.
Alot of that going around these days

[chad]

they thought boynton beach was mayberry?

[sunshine05]

I thought the HOA was there to protect them from this type of thing.

[Olmstein]

"We just feel like we've been wronged," said Jonathon Miller, 32, who paid $359,326 for the home. "We were misled when we purchased it and we finally just got fed up and had to take some sort of action to address it."

This kind of bad reporting really bothers me. Did the Millers write a check for the $359K, or did they borrow the money to buy the house, hoping that their leveraged investment would double in 5 years.

The devil is in the details.

[Saul Mine]

Well, they have been wronged. They were put through 12 years of public schooling to teach them how to be stupid, then they were exposed to a financing hoax specifically designed to trap stupid people in deals like this. They never had a chance. They still don't.

[EE_]

Well, they have been wronged. They were put through 12 years of public schooling to teach them how to be stupid, then they were exposed to a financing hoax specifically designed to trap stupid people in deals like this. They never had a chance. They still don't.


lol, they should be suing the public school system.

[dlm1968]

they thought boynton beach was mayberry?


Yeah, that was my thought exactly.

[1970 Silver Art]

--------------------------------------------------------------------------------

Home purchase price: $359,326
Total current market value: $166,000
Of 30 homes in the Millers' direct vicinity, 22 list the owner's mailing address as different from the property.

************************************************** ********************************






EPIC OUCH!!!!!!!!!!

They felt that they were "wronged" for overpaying on their house and that is why they are suing? Hmmmmmmm........Let me see here..........I am "slow" tonight so please bear with me soooooooooo...............If I, for example, overpaid for a '70's silver art bar on ebay and I felt that I was "wronged" and "misled" by ebay, then does that mean that I can sue ebay to get my money back? ;D ;D ;D ;D

[Mill Man]

There was a discussion on a local Seattle talk radio show last week. A titty bar, actually strike that, we in WA are so repressed we can't have alcohol in strip clubs, so a strip club opened up near Safeco Field and people were upset. Oh nos, my chillins will seez teh tittays, and such. Anyway, one of the shows hosts said, hey, if the Mariners wanted to dictate the neighbors of the ball field, they should have purchased the property when it was up for sale. I've debated this point for years with people. They complain about the condition the neighbors keep the property in even when it doesn't effect them except visually, and when they had the opportunity and financial means to purchase the property. This is the result when you have an immoral government. Few will act morally.

[k-os]

they complain their community of three-story town homes is now overrun by "irreverent transients" who park erratically, leave trashcans perpetually curbside, throw loud parties, install unsightly and unauthorized satellite dishes, and fail to pick up after free-roaming dogs

The horrors!

I left my trashcans curbside this evening too. That's right. They were emptied this morning. I saw the trash cans and recycling bins as I came home at nine-ish tonight and I did not feel like bringing them in. I might not bring them in tomorrow either, but that is because I am a rebel. Thank goodness I don't have an HOA.

I'll tell you another secret, I throw the occasional loud party too. However, I invite my neighbors because I am smart like that, my satellite dish is quite sightly and authorized, and I have a fence to keep my ferocious chihuahuas from free-roaming (but I have seen free-roaming chihuahuas here!) There are erratically parked vehicles, but I don't pay them any mind unless they are a Bentley, then I post about it in the thread about absolutely nothing.

Bottom line: whoever bought a condo (townhouse, whatever it is without land or beach access) for that much money is not very bright to begin with. They want to get out of their contract, and they should want to get out of it. It was stupid to sign it the first place.

[Low_five]

I dont get curbside trash :( my neighborhood gets a dumpster.

[1970 Silver Art]

they complain their community of three-story town homes is now overrun by "irreverent transients" who park erratically, leave trashcans perpetually curbside, throw loud parties, install unsightly and unauthorized satellite dishes, and fail to pick up after free-roaming dogs

The horrors!

I left my trashcans curbside this evening too. That's right. They were emptied this morning. I saw the trash cans and recycling bins as I came home at nine-ish tonight and I did not feel like bringing them in. I might not bring them in tomorrow either, but that is because I am a rebel. Thank goodness I don't have an HOA.

I'll tell you another secret, I throw the occasional loud party too. However, I invite my neighbors because I am smart like that, my satellite dish is quite sightly and authorized, and I have a fence to keep my ferocious chihuahuas from free-roaming (but I have seen free-roaming chihuahuas here!) There are erratically parked vehicles, but I don't pay them any mind unless they are a Bentley, then I post about it in the thread about absolutely nothing.

Bottom line: whoever bought a condo (townhouse, whatever it is without land or beach access) for that much money is not very bright to begin with. They want to get out of their contract, and they should want to get out of it. It was stupid to sign it the first place.


WOW!!!! I think I might have to plan a road trip in the very near future to see you since you mentioned all of that. I will bring the orange juice and the pepperoni pizzas to add to the party atmosphere.

[Heimdhal]

It still never ceases to amaze me how people DEMAND fascistic, totalitarian Home-Owners-Associations.

Some of the people in my own townhouse neighborhood practicaly salivate over it. The other ones just whine and complain about it, but when you tell them "Hey, if you want to run, I'll get you all the support you need to get a position on the board and kick these guys out" they just give you excuse after excuse of why they dont have the time or whatever.

Im starting to think that people just like to be told what they can and cant do down to every minute detail of their lives as long as there is some one aroudn to bitch about it to.

[Libertytree]

HOA's and gated communities are havens for conformists, busy bodies, psuedo-socialists and are the antithesis of individuality and freedom. How anyone could willingly subject themselves to such is truly bewildering to me.

[k-os]

I couldn't agree with you guys (Heimdhal, Libertytree) more. People do like being told what to do. It keeps them in their comfort zone. They don't have to think about what color to paint their house - they have a small palette to choose from. The rules keep them safe in their own head, so they don't have to think about what size palm tree is required for them to have, or where to put it. This frees their mind power so that they can concentrate on the really important decisions in life: who to vote for on American Idol.

[willie pete]

I couldn't agree with you guys (Heimdhal, Libertytree) more. People do like being told what to do. It keeps them in their comfort zone. They don't have to think about what color to paint their house - they have a small palette to choose from. The rules keep them safe in their own head, so they don't have to think about what size palm tree is required for them to have, or where to put it. This frees their mind power so that they can concentrate on the really important decisions in life: who to vote for on American Idol.


I can certainly understand your point, and to be sure I hate HOA's, but what do you do when your neighbor paints their house lime-green or pepto-bismol pink and has a couple cars on blocks out front or never cuts the grass? ..and as for the OP, you can multiply that scenerio by millions...what sucks too, regarding HOA's, say you live in a bldg with 100 apartments/condos whatever, and 35 of them are in foreclosure or vacant for whatever reason, well the owner occupied dwellings just had their monthly HOA fees increased to cover the non-paying units, and maybe by several hundred dollars, and in most/some states, you don't pay your HOA fees? the HOA can start foreclosure on you

[Libertytree]

As far as color choices go it's really none of your business, taste is a subjective thing and their taste certainly harms you in no matter whatsoever. There's lots of green and pink houses here in Florida and I can honestly say that not one of them has harmed me yet, let alone offended me.

Cars up on blocks are usually dealt with by ordinances that are within most city/county limits, one phone call would probably fix that.

[silver_surfer]

I can certainly understand your point, and to be sure I hate HOA's, but what do you do when your neighbor paints their house lime-green or pepto-bismol pink and has a couple cars on blocks out front or never cuts the grass?

Isn't that what freedom is all about.
If you don't like the color they choose then you can
1) deal with it
2)move
3) try to buy them out

Why should you be able to tell someone what color they can paint there house.

[willie pete]

Well thanks for your opinions...

[sunshine05]

Well, we live in an HOA neighborhood and I do understand why people hate them but I don't honestly mind it much. For one thing, we wanted to live in a development where our kids could have friends in the neighborhood and a place to ride their bikes, walk the dog, etc. We wanted a certain size house and property size and with all that we were looking for it was impossible to avoid an HOA neighborhood. The rules are not extreme and I'm not aware of anyone who has had issues with them. At our previous address there were a lot of foreigners and they didn't take care of their homes at all. They didn't paint their front decking and paint was peeling off and they didn't take care of their lawns at all and the HOA did make them take care of these things and it helped keep the property values decent so we luckily had no problem selling. Without the HOA, the neighborhood was starting to look a little run down. JMO. Not trying to start an argument about them.

[Heimdhal]

I couldn't agree with you guys (Heimdhal, Libertytree) more. People do like being told what to do. It keeps them in their comfort zone. They don't have to think about what color to paint their house - they have a small palette to choose from. The rules keep them safe in their own head, so they don't have to think about what size palm tree is required for them to have, or where to put it. This frees their mind power so that they can concentrate on the really important decisions in life: who to vote for on American Idol.


I can certainly understand your point, and to be sure I hate HOA's, but what do you do when your neighbor paints their house lime-green or pepto-bismol pink and has a couple cars on blocks out front or never cuts the grass? ..and as for the OP, you can multiply that scenerio by millions...what sucks too, regarding HOA's, say you live in a bldg with 100 apartments/condos whatever, and 35 of them are in foreclosure or vacant for whatever reason, well the owner occupied dwellings just had their monthly HOA fees increased to cover the non-paying units, and maybe by several hundred dollars, and in most/some states, you don't pay your HOA fees? the HOA can start foreclosure on you


While I will side with Liberty Tree on house choices and what not, I will add a small caveat that decrepit houses CAN effect others in the neighborhood by lowering home values. This only becomes a REAL issue if you are looking at your home-debt as a investment rather than a commodity. This is why so many HOA's were started, because people were bitching that their neighbors were making their neighborhood look like crap.

However I believe personal responsibility comes into play on that one and a few neighbors coming over for a "friendly visit" to encourage the offender to maybe change some things would certainly be perferable to getting the state/county or an HOA involved.


About your HOA fees point, I couldnt agree more. My townhouse community of about 110 units (that we are desperatly trying to get out of, and are not really here by choice, but simply economic and monetary constraints) has some 20-30 foreclosures or non-payers. Our HOA fees are over $320 per household per month. They are talking about tacking on another $20. They are also run by total fascist that I have been "at war" with for as long as I've lived here. They dont like me, I dont like them, but they're more scared of me than I am of them! :P

[ghost]

A lawyer and the executive directer of a non profit, it sounds like two bottom feeders complaining about the sharks.

ghost

[sunshine05]

Heimdhal, those HOA fees are outrageous! I never understood why condos charged so much in fees. I get that they take care of the exterior maintenance and lawn care, etc. but still that seems like a big rip-off. We pay about $300/year for our HOA fees.

[willie pete]

I couldn't agree with you guys (Heimdhal, Libertytree) more. People do like being told what to do. It keeps them in their comfort zone. They don't have to think about what color to paint their house - they have a small palette to choose from. The rules keep them safe in their own head, so they don't have to think about what size palm tree is required for them to have, or where to put it. This frees their mind power so that they can concentrate on the really important decisions in life: who to vote for on American Idol.


I can certainly understand your point, and to be sure I hate HOA's, but what do you do when your neighbor paints their house lime-green or pepto-bismol pink and has a couple cars on blocks out front or never cuts the grass? ..and as for the OP, you can multiply that scenerio by millions...what sucks too, regarding HOA's, say you live in a bldg with 100 apartments/condos whatever, and 35 of them are in foreclosure or vacant for whatever reason, well the owner occupied dwellings just had their monthly HOA fees increased to cover the non-paying units, and maybe by several hundred dollars, and in most/some states, you don't pay your HOA fees? the HOA can start foreclosure on you


While I will side with Liberty Tree on house choices and what not, I will add a small caveat that decrepit houses CAN effect others in the neighborhood by lowering home values. This only becomes a REAL issue if you are looking at your home-debt as a investment rather than a commodity. This is why so many HOA's were started, because people were bitching that their neighbors were making their neighborhood look like crap.

However I believe personal responsibility comes into play on that one and a few neighbors coming over for a "friendly visit" to encourage the offender to maybe change some things would certainly be perferable to getting the state/county or an HOA involved.


About your HOA fees point, I couldnt agree more. My townhouse community of about 110 units (that we are desperatly trying to get out of, and are not really here by choice, but simply economic and monetary constraints) has some 20-30 foreclosures or non-payers. Our HOA fees are over $320 per household per month. They are talking about tacking on another $20. They are also run by total fascist that I have been "at war" with for as long as I've lived here. They dont like me, I dont like them, but they're more scared of me than I am of them! :P





Very Well Said...

[Heimdhal]

Heimdhal, those HOA fees are outrageous! I never understood why condos charged so much in fees. I get that they take care of the exterior maintenance and lawn care, etc. but still that seems like a big rip-off. We pay about $300/year for our HOA fees.


Yeah, you're telling me! Were techincaly "renters" because of our living situation (multigenerational household :P), so we cant get on the HOA, otherwise I would run for the board and do what I could. THats why I said earlier I tell people that I would fully back them if they made a move to get on the HOA and kick some of these fascist out, but everyones got an excuse and no one wants to butt heads, they just want to keep theirs down and avoid any trouble and just keep bending over every month.

There is a line where neighbors can bring downt he values of homes on an entire street. Where I grew up, about an hour north of where I am now, the neighborhood went to total crap and they have a modest HOA. My aunts house wasnt worth a thing when she passed away a few years ago because all her neighbors had cars on blocks in their driveways, brown or dirt lawns, etc.

But thats where you must look at it as your house ist he commodity, your neighborhood is the investment. You dont like some of the crap thats going on on your street, go over to the offender and offer to maybe help him with his lawn one weekend, or help him paint. Its work, and it sucks, I know, but sitting in the living room waiting for some self-rightgeous group of police state wannabes to put a lien on said neighbor certainly doesnt improve the neighborhood.

Who the hell wants to move into a place with a fasicstic HOA where everyones walking around on eggshells like they've have their balls cut off. Dogs with their tails between their legs hoping the HOA-hammer of doom doesnt fall on them. Seems like that would scare away perspective buyers irrespective of home values.

There is a line sure, but getting the "state" or rather, statist, involved is very, very, very far over that line.

Invest in your neighborhood as you would your home and make it a place everyone enjoys and I see little need for more organizations than a "block captain" if at all. People who are attracted to "hoa-power" are some of the most vile creatures alive, lol.