As of 8/30/2010, the Florida Department of Health received 723 complaints in 33 counties of homes that were affected by Chinese Drywall. Considering that Florida experienced such a large building boom between 2004 and 2008, why after two years of media hype, is this number so low?
Kross Inspectors has performed almost 7,000 inspections since Chinese Drywall first hit the media in 2008. This extensive database of inspections still maintains that approximately 5% of the homes built between 2004 and 2008 are affected by defective drywall.
The reason the Florida Department of Health has not received a large number of complaints is simple. Lenders do not file a complaint to the Department of Health when they foreclose on a Chinese Drywall home. The news that came out last week about lenders halting foreclosure sales may explain a lot:
It is a known fact that foreclosed properties dominate the Florida Real Estate market. Our experience in providing inspections to some of the nation's largest lenders is that they simply do not know that they own Chinese Drywall Homes.
The typical assignment received by Kross Inspectors for a lender follows this example:
- A potential buyer submits an offer for an REO property.
- That potential buyer follows up with a claim that the home has Chinese Drywall and attempts to negotiate or cancel the contract.
- The lender then contacts Kross Inspectors to confirm that the home does or does not contain defective drywall.
Take into consideration that many of those homes were inspected for the potential buyer by inexperienced Inspectors. This resulted in approximately 40% of these homes being misdiagnosed! The remaining 60% that were confirmed as positive by Kross Inspectors were NEVER reported to the Department of Health.
With so much of our market dominated by foreclosures, it is most important that potential buyers perform their due diligence by seeking the most experienced professionals when making their decision to purchase.
To find out more, visit www.krossinspectors.comor call our Chinese Drywall Hotline at (877) 496-4662.