Complaint Review: KB Homes - Los Angeles California

Brian, As mentioned in the previous statement referencing your post, these builder's own not just the building company, but the mortgage companies. Therefore, they have a foot in with appraiser's. I don't know KB's situation but regardless, often the mortgage companies use the same appraiser's they've created a relationship with to pull out (within reason, of course), the financial amount needed. That would probably explain the numerous visit's to your home. Again, it sure does not solve your problem! It's just a bad one all the way around. Have you tried working with a CEO or a "higher up"? It might be a shot in the dark, but the worst thing that could happen is you get a "NO"! There may be nothing that can be done, but perhaps help with landscaping or an added incentive in place of some of your loss would be something to consider presenting. Toss some other ideas at them to help offset your negative equity, thus gaining some equity. I have found going in with the "get more bee's with honey" approach is helpful and providing ideas instead of the black and white, "I WANT CASH!" might keep communication and consideration doors open. Request they take some time to consider alternatives in consideration of your loss before making a final decision on how to help you. If the "NO" happen's, ask he or she, considering your experience to date, what would be your incentive to purchase another KB home or recommend one of their communities to a friend? Many of these builder's are cash poor, especially considering the current drop's in value, but have access to many reasonably priced trades that would benefit both you, the customer and the builder in an effort to rebuild the bridge between you. Many of these corporate head's, despite popluar opinion, are really good people if you can just find your way to them. I seem to be successful in finding a common place in dispute resolution when approaching the decision maker respectfully and not yelling. Even when we may not agree. More often than not, a decision maker will be willing to help where they can if treated respectfully. You have every right to feel very angry about this situation. Anyone in your position, including the heads of KB Homes would feel the same way! Hang in there and keep your calm. You might be surprised and things make a turn for the better, only in a different way than you had expected. If you elect to try the above suggested, let us know. I'll keep my finger's crossed for you in hopes of your finding a resolution that works for both you and KB. Good luck!

The house appraised barely, the appraiser had to come out here 2 different times and I was told by the lender that he really had a hard time appraising the house at the listed base price. This should have sent off a red flag to me that something was up.

Brian, My sister-in-law is going through a similar situation with a different builder in Maricopa County. She started the build on her home when the purchase price was around $400,000. Many of her future neighbors closed at the peak. Meanwhile, as the market has slowed down, the values have dropped some. Her home is not priced at approx. $50,000 less than when she put her earnest deposit down. You are only in danger of losing your earnest deposit if you back out of the deal. But the house has to appraise properly otherwise one of 2 things has to happen, 1) the deal is renegoiated based on current appraisal or 2) if the builder is not willing to negoiate by law they have to refund your earnest deposit in full. I'm sorry it's too late in your case. The problem for you is you probably did appraise as needed to solidify the loan, then shortly thereafter the market dropped. You must have fallen right on the edge of peak and drop. Although the growth is not at the 40% rate we experienced last year creating high equity situations, the growth does remain. It's around 14%, so all is not lost. Arizona is the most corrupt state for builders. Builders owning the mortgage companies has created for some unethical activity. Not all, but many. If I had an answer to solve your problem, I would love to share it. Unfortunately, I can on feel for you! Good luck to you!

I love this website, I was in the process of buying a KB home, they sent me information and call me about once a week to see if I am ready to buy. Something in my gut was telling me to do your research before you buy because I built a home in the past with Ryan homes and had a bad experience. I notice that when I go into a KB home area, it appears to be on the side of town that look cheap and broke down. Also, as I drive by some of the development, it appeared that the worker my have needed green cards to work there. I will never touch this company and I told the rep never to call me again. Thanks to this website I will not make that mistake. Thanks,

take a realtor with you. They will be able to tell you if you are buying in a poor area or paying too much for a home.

KB has a long history of poor business practices. Look them up on the internet. There are plenty of sites detailing such. Probably with the interest rates going up, they'll just lower the prices of their homes. Years ago, I lived in a neighborhood that KB was moving into. As soon as I heard that, I sold my house and moved out. I got top dollar for my house and made a good profit. The neighborhood went downhill and crashed. To this day, my real estate agent always says that was a smart thing to do. She got stuck with several houses and lost a bunch of money. They still make the same crap, just at a higher price. Deceny and ethical standards don't apply. They're having alot of problems in TX, with their arbitration clauses. IMO.