KB Homes is being sued by an individual who lives in a HUD home and he or she wants to be paid for the damage done to their unit. He or she is asking for a Class Action Lawsuit against the HUD housing department, as this particular Housing department does not make enough provisions for cases such as these. This particular case has dragged on for some time now and has yet to reach a settlement. The lawyers have been hard at work and they have been able to win in court in several instances.
KB Homes Class Action Lawsuit
One of the many cases that have been settled out of court is the one concerning the Leases vs. Ownership case. This class action lawsuit was filed by the Leases’ former homeowner, while he or she was residing in an unoccupied house. At the time he or she was not aware that the house had been sold to another entity. The Leases’ current homeowners have been living in their home for about three months now and have not received any kind of compensation yet. There was also no written notification as to the Leases’ acceptance of the sale of the house by another party.
This is one of the problems with HUD Homes.
If there is a problem with the home and a new ownership takes over, it is the duty of the Housing Department to notify the former homeowners of the problem and to accept liability on the part of the new owner. However, in the case of KB Homes, there were several signs that something was amiss even before the home was taken over by another entity. An agency representative visited the home about a month after the transaction took place. He or she informed the homeowners that the house would need to be inspected for several items and that the results would be sent to the lawyer of the Leases’ class.
The lawyer of the KB Homes did not send the results of the inspection to the Leases’ attorney and neither did he or she send the signed form back to the Leases’ attorney.
This was a total misunderstanding of how real estate works. The fact that the inspector was not a member of the class of KB Homes and that he or she was an outsider looking to make money from the sale of the home by the Leases is what created the problem in the first place. It was this lack of understanding that led to the lawsuit filed by the Leases’ class action suit. What was never realized was that this negligence could have been easily avoided if the Leases’ attorneys had notified the former owners of the problems beforehand.
What else went wrong?
Another problem with KB Homes is that they never made any kind of repairs or improvements to the home during the time that it was owned by the KB Homes’ defendant. This is very troubling because there are many different kinds of people who can be held responsible for neglect and failure to make necessary repairs and improvements. Some of the homeowners could have been facing financial problems or that they just didn’t want to make the necessary improvements. Either way, the defendant could have made some kind of arrangement with the former homeowners to accommodate their requests. The fact that the defendant failed to do so leaves the plaintiffs in a very difficult situation of being able to pursue their lawsuit.
As you can see, the problems with KB Homes run far deeper than the company itself.
There is a very good reason why the class action lawsuit was thrown out of court. This is a case where the plaintiffs were able to present a valid claim that the defendant’s failure to make required repairs and maintenance resulted in harm and suffering to the plaintiffs. However, the judge saw it differently and threw the case out.