Feds: Gut homes with Chinese drywall

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"NEW ORLEANS (AP) - Thousands of U.S. homes tainted by Chinese drywall should be completely gutted, according to new guidelines released Friday by the Consumer Product Safety Commission. "
http://www.breitbart.com/article.php?id ΩER3HJ00&show_article=1
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Sounds like the only solution. Is Obama paying for it?
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wrote:

It sure does not sound like the feds will be doing anything. FEMA has said it was not a disaster or an emergency by their definition. Maybe HUD will stand up. Unfortunately the blame really lies with the chinese, they won't do anything and we won't make them.
I do know a guy who has rehabbed a few of these and the gut and rebuild seems to be the way to go. He was doing it for about $10 a square foot because everyone was out of work.
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keith wrote:

It happened under Bush's reign. Should Bush pay for it?
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It doesn't matter which administration is blamed. That's just a silly comment. The real question is who pays for the rebuilding? Basically there are a couple of options: A: The chinese manufacturers - Which I seriously doubt this will happen. B. The US people - basically we'll pay more in taxes or go deeper in debt if the government pays C. The actual homeowners - Umfortunately they may have to absorb the cost.
Personally, i don't "A" will pay for it and I hope that "B" doesn't have to pay for it. I'm getting tired of having to pay more taxes or have the country go deeper in debt to pay everyone else. I'm willing to pay my share, but I think everyone should pay theirs as well.
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Or D. The builder and/or home warranty companies (unless the homeowner purchased the materials separately, which is doubtful). To me it's no different than any other structural deficiency (whether caused by, say, defective floor trussses, or bad framing). Let the builder/insurance/warranty company go after *their* suppliers/importers down the line.
Hmmm, scary thought -- if the drywall corrodes your floor truss plates, it could be very dangerous...
Josh
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Once you bankrupt the suppliers, where do you turn?

Nails.
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On Fri, 02 Apr 2010 22:43:07 -0500, " snipped-for-privacy@att.bizzzzzzzzzzzz"

If the suppliers DO go bankrupt, isnt' the business sold as part of the bankruptcy and then someone new becomes the supplier?
As to where the home warranty companies turn, they may take a loss, which they will spread out over all the other houses they warrant, and over years to come or years past (by selling assets). Or they may go bankrupt, which would put it back on the homeowner.

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Well, it depends. If someone buys the bankrupt business as a business, they may or may not acquire the liabilities. Most likely not. It will depend on the deal worked out with the creditors. Or the bankrupt business could be closed, whatever assets they have sold and the proceeds divided up among the creditors.
-- Doug
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There is plenty of precendent for this. Abstestos makers, for instance, went bankrupt, still put into a fund for the victims and then came out.
--
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Who would buy that liability? No, it's far more likely the court would end it there and the business' assets would be sold off and the liabilities are the creditor's problem.

Yes, if they even cover this. My bet is that there this sort of thing isn't covered by a normal warranty or there is a cap on pay-outs.

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On Sat, 03 Apr 2010 14:29:02 -0500, " snipped-for-privacy@att.bizzzzzzzzzzzz"

No one maybe, but I"m talking about a sale by the court after bankruptcy.

Doesn't the court try to sell the business as a business, in order to get the most money for the previous owner's creditors, and then the new owner has none of the prior liabilities?

You might be right. I was just working with what a previous poster said or implied, that the home warrantees would pay, at least some of it.

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Right. Who would buy the liability? Unless the court strips the liability from the assets no one would buy the assets and *no one* would get paid out of the proceeds.

Right, because no one will buy the liability. If there were enough assets to cover all liabilities, there wouldn't be a bankruptcy. That still leaves the homeowner out in the cold.

Maybe some of it, but to gut a house and restore it they're talking about more money than the house cost to begin with. What insurance is going to cover that? You can get "replacement value" insurance on a home, but it doesn't cover defects.

OTOH, from what I've learned since, steel isn't affected.
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wrote:

Right, and that's why the court would do just that.

You seem new to the thread. The point was not that no one would buy a liability, which no one argues about, or that the homeowner wouldn't be left out in the cold. Sure he would lose money, maybe loads of money.
My point was that the court would sell the business without any of the liabilities attached, because it would get more money than selling it piece by piece. Then a new owner would own the business, and continue to do business. The point was that the business would not close if the court was able to sell it as a business.
Bankruptcy courts sell assets and attempt to pay off debts. They don't sell debts.

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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
No, actually, you were disagreeing with me (see underlined, above).

The liabilities would go with the assets if there were enough proceeds to make everyone whole, which is unlikely since the business is in bankruptcy to begin with. My point was that no one would buy the assets if the liabilities were still attached. Any way you cut it, the homeowners are stuck with a disaster.
<...>
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wrote:

The builders like Lennar who are still solvent are doing a commendable job of making their owners whole. They are moving the homeowner into another house, fixing theirs and moving them back on the warranty. The builders who are insolvent are beyond the court since they are bankrupt.

Not a problem. Aluminum, steel and wood is unaffected. This is the torsion spring assembly of the garage door
http://gfretwell.com/ftp/Chinese%20Drywall/Steel%20and%20aluminum.jpg
This is a set of brass screws right next to that door.
http://gfretwell.com/ftp/Chinese%20Drywall/Brass%20keys.jpg
It only affects copper or brass and the blackening is actually "skin deep". Once you remove the contamination and wipe off the black scale, the copper is shiny under it. Our electrical inspectors say if you clean the copper or just strip back a little until you get clean copper you are good to go. These are some pictures of devices and copper wire from a real drywall house. http://gfretwell.com/ftp/Chinese%20Drywall/devices.html
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Does the sulfur come from the Gypsum itself or another additive? I am assuming the latter because that is what was written here a few months ago.
THis reminds me of the 1970s when folks were spraying foam between their walls and it leached formaldehyde.
I don't get how when we buy "gypsum" and they add all sorts of other things (wood chips), supposedly to make it better, but don't tell you except in the fine print.
THe next thing we'll find out the "wood" we buy isn't really "wood".
Yeah, yeah, I know the stuff you get out of the ground isn't chemically pure either. BUt this is ridiculous.
                 - = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist http://www.panix.com/~vjp2/vasos.htm http://www.facebook.com/vasjpan2 ---{Nothing herein constitutes advice. Everything fully disclaimed.}--- [Homeland Security means private firearms not lazy obstructive guards] [Urb sprawl confounds terror] [Phooey on GUI: Windows for subprime Bimbos]
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*+-Hmmm, scary thought -- if the drywall corrodes your floor truss *+-plates, it could be very dangerous...
Thanks to termites brought by Chinese navy stockpiled in New Orleans during WW2, insurers won't cover wood frames south of Mason Dixon, mandating steel studs (sheet metal C-sections).
                 - = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist http://www.panix.com/~vjp2/vasos.htm http://www.facebook.com/vasjpan2 ---{Nothing herein constitutes advice. Everything fully disclaimed.}--- [Homeland Security means private firearms not lazy obstructive guards] [Urb sprawl confounds terror] [Phooey on GUI: Windows for subprime Bimbos]
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snipped-for-privacy@at.BioStrategist.dot.dot.com wrote:

Sorry, gotta call BS on this one. Every year on my trip to Lake Charles, in SW Louisiana, I get to see the inside of several residential new construction sites. All wood. Yes, termites are a problem down there, and almost all new construction is on slab, due to high water table. So, pre-treated wood, and final landscaping always includes termite treatment and a ring of those little tell-tale bait boxes. But house is still framed in wood.
--
aem sends...

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My house (in ALabama) was built in '07, on a slab, with a wood frame. I have a termite inspection done once a year (and the carpenter bees nuked). Termites are a problem in just about every state. They're not something unique to the South.
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