"Lemon Tree Tower" Tremont Tower Video featuring Juliet Homes

From swamplot.com:

So the actors aren’t likely to win any awards, but this new video posted to YouTube by Tremont Tower owner-victim-gadfly Heather Mickelson is notable for it’s uh . . . stirring illustration of the connection between construction-quality complaints and foreclosure train wrecks.

The Tremont is colorfully renamed “LemonTree Tower” in the video reenactment. If you’re new to the story, you’ll find better introductions to the sordid Montrose condo tale elsewhere. But if you’ve ever wondered why foreclosures seem to gather like flies around new developments that feature questionable levels of quality (and, say, water-tightness), this will make pretty good internet theater. No, the mortgage defaults aren’t the work of the millions of mold spores and the grim reaper, who together make cameo appearances in the video; they’re the ultimate result of the surefire sales techniques employed for undesirable properties — made so much easier, of course, by the subprime-mortgage boom.

Here’s the formula: Building with bad enclosure + poor disclosure = lots of foreclosure. Or just watch the video. At just over seven minutes, it’s still a lot shorter than Glengarry Glen Ross.

LemonTree Tower [YouTube]
Ownership Wrongs [Houston Press]
The Dirty Little Secret Behind the Montrose Foreclosure Hump [Swamplot]
The Collapse of 1342 Rutland [Swamplot]
Read more about: 77006, Buying and Selling, Condos, Financing, Foreclosures, Fraud, Highrises, Mold, Montrose, Mortgages, Tremont Tower

New Documentary featuring Juliet and Tremont Homes

Check out Youtube for this just-released dramatization of Tremont Tower and Juliet Homes business practices. It's only seven minutes long and is very educational:

http://vids.myspace.com/index.cfm?fuseaction=vids.individual&videoid=23746207

Juliet Homes and Doug Brown file for Chapter 7 Bankruptcy

Juliet Homes writes off over 7 million dollars of debts to their creditors by filing for bankruptcy. Not only does Juliet homes file for bankruptcy, so does its owner: Doug Brown.

This is a fact, according to the US Bankruptcy Court, Southern Texas:

A bankruptcy case concerning the debtor(s) listed below was filed under Chapter 7 of the United States Bankruptcy Code, entered on 09/20/2007 at 12:55 PM and filed on 09/20/2007.

Juliet Homes, LP 5225 Katy Frwy Suite 605 Houston, TX 77008 Tax id: 00-00000000

A bankruptcy case concerning the debtor(s) listed below was filed under Chapter 7 of the United States Bankruptcy Code, entered on 09/20/2007 at 12:46 PM and filed on 09/20/2007.
Douglas A. Brown 4009 Overbrook Houston, TX 77027 SSN: xxx-xx-0000

The case was assigned case number 07-36422 to Judge Marvin Isgur.

The case was filed by the debtor's attorney:
J Craig Cowgill Attorney at Law 2211 Norfolk Suite 1190 Houston, TX 77098 713-956-0254

Tremont Tower featured on Channel 11 - Foreclosures

Tremont Tower, a 76-unit condo development in Houston, is auctioning off 24 foreclosed units. Built in 2003, the building boasts the city's highest foreclosure rate of over 50%. This report suggests sub-prime lending as culprit, without mention of the construction defects and intense mold levels. Buyer Beware!

http://www.khou.com/topstories/stories/khou071107_jj_foreclosurehomes.1ea3fb6b1.html

Juliet Homes has 19 lawsuits filed against them in 2007 - That's a lot of lawsuits

What a legal mess Juliet Homes must be in! According to public record, there are 19 civil cases filed against Juliet Homes. How do they have time to build houses when they're in court all the time? Here's the list of suits...

893860 001 O/D JULIET GP LLC ETAL THOMAS MELISA A OP DBT 05-18-2007 798804153 14905 SOUTHWEST FWY #201 SUGAR LAND478 2500 WILCREST #201 HOUSTON 042 77478 TX 77042 TX1 895821 001 O/D JULIET GP LLC ETAL BROWN & GAY ENGR INC OP DBT 06-13-2007 799785859 720 RUSK 2ND FLR HOUSTON 002 77002 TX2 898019 001 O/D JULIET GP LLC*DBA* TEXAS CBS RADIO BLP ETAL OP DBT 07-06-2007 743965550 14905 SOUTHWEST FWY #201 SUGARLAND 478 77478 TX2 898019 001 O/D JULIET GP LLC*DBA* TEXAS INFINITY BLP ETAL OP DBT 07-06-2007 743965550 14905 SOUTHWEST FWY #201 SUGARLAND 478 77478 TX2 898019 001 O/D JULIET GP LLC*DBA* KILT-AM/KILT-FM*DBA* OP DBT 07-06-2007 743965550 14905 SOUTHWEST FWY #201 SUGARLAND 478 77478 TX2 902860 001 O/D JULIET HOME LP KRUGER CHRISTOPHER OP DBT 09-05-2007 745994200 720 RUSK 2ND FLR HOUSTON 002 77002 TX1 890086 001 O/D JULIET HOMES LP DAE & ASSOCT LTD ETAL OP DBT 04-10-2007 797711906 5225 KATY FWY #605 HOUSTON 009 77009 TX1 890086 001 O/D JULIET HOMES LP GEOTECH ENGRNG T*DBA* OP DBT 04-10-2007 797711906 5225 KATY FWY #605 HOUSTON 009 77009 TX2 893860 001 O/D JULIET HOMES LP ETAL THOMAS MELISA A OP DBT 05-18-2007 798804153 802 MILAM HOUSTON 002 2500 WILCREST #201 HOUSTON 042 77002 TX 77042 TX2 895031 001 O/D JULIET HOMES LP ETAL TEXAN DRYWALL INC OP DBT 05-31-2007 799703939 802 MILAM HOUSTON 002 77002 TX4 895438 001 O/D JULIET HOMES LP ETAL RLB CONST LTD ETAL OP DBT 06-07-2007 799743411 802 MILAM HOUSTON 002 77002 TX4 895438 001 O/D JULIET HOMES LP ETAL ROOFTEC*DBA* OP DBT 06-07-2007 799743411 802 MILAM HOUSTON 002 77002 TX1 895821 001 O/D JULIET HOMES LP ETAL BROWN & GAY ENGR INC OP DBT 06-13-2007 799785859 720 RUSK 2ND FLR HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES LP ETAL TEXAS CBS RADIO BLP ETAL OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES LP ETAL TEXAS INFINITY BLP ETAL OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES LP ETAL KILT-AM/KILT-FM*DBA* OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES*DBA*ETAL TEXAS CBS RADIO BLP ETAL OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES*DBA*ETAL TEXAS INFINITY BLP ETAL OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX2 898019 001 O/D JULIET HOMES*DBA*ETAL KILT-AM/KILT-FM*DBA* OP DBT 07-06-2007 743965550 720 RUSK ST HOUSTON 002 77002 TX

Juliet Homes sold me a Lemon

I purchased a new condo unit at Tremont Towers from Juliet Homes and it was a lemon. I got sick from the high levels of molds in the condo development and was forced to move out. Juliet Homes walked me through the entire sales process and handled my mortgage. Within the first week of moving in I discovered my granite countertop was cracked in half, hot water did not work, my refigerator they promised never arrived, balcony was incomplete and rusting, water was intruding, and there was a strong musty/ mildew smell. I contacted Juliet Homes to request repairs, but no one called me back. I called my sales agent's cell phone. Sent certified letters. No response.
Certified Lab Mold Testing reported four molds present at unusual levels and I was getting sick - waking up with bloody noses and sleeping 18 hours a day. My doctor told me to move out immediately. Juliet Homes still ignored my requests. An arbitration clause prevented me from sueing them in the courts.
No one wanted to buy my unit and a foreclosure was inevitable. When it foreclosed, my credit score dropped from 745 to 500. I became homeless and broke, losing over $40,000 of savings invested into the condo. The 76-unit condo complex remains vacant, with one of the lowest occupancy rates in the neighborhood. I was unable to resell, fix, or live in my condo without taking a large loss or getting sick. The BBB's record on Juliet Homes is "Unsatisfactory" and called them a "contractor from hell". Juliet Homes remains under state and federal investigations. To date, Juliet Homes never responded to my phone calls, even two years later, and continue to build throughout the Houston area.

Juliet Homes: "Unsatisfactory" Record at BBB

Currently, Juliet Homes has an "Unsatisfactory" record at Houston's BBB. They revoked Tremont's membership and headlined their monthly magazine "Contractors from Hell - Not at the BBB".

This is the current report on Juliet Homes from the BBB's website:

EXPERIENCEBased on BBB files, this company has an unsatisfactory record with the Bureau due to unresolved complaint(s). This company's legal representative informed the BBB that Juliet Homes does not build homes, they are a new home construction marketing company. The legal representative did confirm that Tremont Homes, Inc. does serve as a sub-contractor to build homes in some of the neighborhoods they market within.Because this company does not actually build structures they are not required by the TRCC (Texas Residential Construction Commission) to register as a builder.When evaluating complaint information, please consider the company's size and volume of business. The number of complaints filed against the company may not be as important as the type of complaints and how the company handled them. The Bureau processed one complaint about this company since the firm's BBB file was opened in March of 2005. It was closed more than 12 months ago. Complaints ConcernedRefund or Exchange Issues: 1Outcome of the complaint -Unresolved: 1LICENSING INFORMATIONThis company is in an industry that may require licensing, bonding or registration in order to lawfully do business. The Bureau encourages you to check with the appropriate agency to be certain any requirements are currently being met. These agencies may include The Texas Residential Construction Commission311 E. 14 th Street, Suite 200Austin, Texas 78701* Toll-free consumer helpline: (877) 651-TRCC(8722)* Consumer Helpline: (512) 305-TRCC(8722) (for Austin, Texas and out-of-state callers)* Commission Main Switchboard: (512) 463-1040 (Office hours are 8:00 a.m. to 5:00 p.m. CST)Fax* (512) 463-9507 You may wish to contact the following agency or agencies:_WES_Rio Grande Valley Builders Association 419 Nolana Street McAllen, TX 78504 956-686-2932 _WES_Texas Residential Construction Commissio P O Box 13144 Austin, TX 78711 877-651-8722 http://www.trcc.state.tx.us/TRCC 311 E. 14 th Street, Suite 200 Austin, TX 78701 877-651-8722 http://www.trcc.state.tx.us/ADDITIONAL TRADENAMES, ADDRESSES AND TELEPHONE NUMBERSThis business also uses the following names, addresses and/or telephone numbers:Juliet Homes319 Bayou (713) 222-9600Houston, TX 77020Juliet Homes5710 Memorial Suite D (713) 222-9600Houston, TX 77007Juliet Homes5225 Katy Freeway #605 (713) 222-9600Houston, TX 77007(713) 222-9600(713) 863-9953This is not necessarily a complete list.COMPANY MANAGEMENTAdditional company management personnel include:Bernie Kane, Vice President and Joanne Gober, Controller.EDUCATIONAL/GENERAL COMMENTSThe BBB will process complaints concerning new homebuilder defects within the first 30 days that the defect has been detected** by the homeowner. Please note the following steps: *If the issue is beyond the 30- day period the consumer should file a complaint with the TRCC (Texas Residential Construction Commission). *A SIRP (State-Sponsored Inspection and Dispute Resolution Process) must be undertaken. The SIRP will provide a third-party inspection of the home with alleged defects. *Consumers will be responsible for a SIRP filing fee; however if the inspection finds that the home has the defect(s) the homebuilder is required to reimburse the homeowner. *More information including downloadable forms may be found on the TRCC website at: http://www.trcc.state.tx.us/ *The TRCC inspection is a mandatory first step that must be taken before a homeowner can take any legal action against a builder. *After the final inspection report is issued, if the builder does not repair the confirmed defects, homeowners are left to pursue either binding arbitration or litigation on their own. *If the homebuilder is a member of the BBB the homeowner may come to the BBB for a binding arbitration hearing. Arbitrations between BBB members and their consumers will be conducted at the Houston BBB for free.**The TRCC has the stated homeowners who believe their homes have defects can file for a SIRP 30 days after notifying their builder about the alleged defects. The builder may inspect the home and take whatever correction action is needed in that 30-day period. TRCC officials have allowed that the BBB of Houston may handle the consumer complaint in the initial 30-day period prior to a SIRP being undertaken. According to the TRCC it is possible for both parties to conciliate and/or mediate the issues at the BBB during this initial 30-day period. Only after a SIRP has been completed and the TRCC appeal panel has reviewed any appeals then the TRCC's jurisdiction ends and the BBB binding arbitration may commence.REPORT DATE: 02/09/2007COPYRIGHT DATE: 2007 BBB of Metropolitan HoustonThe information in this report has either been provided by the company, or has been compiled by the Bureau from other sources.STANDARD DISCLAIMERAs a matter of policy, the Better Business Bureau does not endorse any product, service, or company. BBB reports generally cover a three-year reporting period, and are provided solely to assist you in exercising your own best judgment. Information contained in this report is believed reliable but not guaranteed as to accuracy. Reports are subject to change at any time.If you choose to do business with this company, please let them know that you contacted the Better Business Bureau for a report.BBB reports may not be reproduced for sales or promotional purposes

My testimony to TRCC February 7, 2007

Duane Waddell, Director
Texas Residential Construction Commission
3311 East 14th Street, Suite 200
Austin, Texas 78711
SUBJECT: Juliet Homes Agreed OrderPresented to TRCC Board of Directors: February 7, 2007

Dear TRCC Director Duane Waddell:

As a victim of Tremont and Juliet Homes, I cannot support the agreed order submitted to your state agency. I’m here to oppose the settlement presented by Juliet Homes, LP (registration #8006) and Bernard Jr., primary designated agent
(registration #27983) to the TRCC Board of Directors today. Juliet Homes, L.P. a homebuilder in Houston, Texas also markets homes for homebuilder Tremont Homes, yet does not disclose or advertise to the buyer who is the actual builder.

Juliet and Tremont Homes and their related entities continue to play a shell game of corporations. When I purchased a defective condominium from Juliet Homes, Juliet Homes refused to repair the shoddy construction on the basis they were only a marketing company for Tremont Homes and Tremont Towers. Juliet Homes currently has an “Unsatisfactory” rating with Houston’s Better Business Bureau. I lost my good credit, my home, and my dreams of home ownership because of Juliet Homes scrupulous business practices. They did everything they could to sell me a home, even if it was knowingly defective. Because Juliet Homes also participated in loan fraud, they remain under state and federal investigations. Juliet Homes and its related entities were instrumental in forging documents closing documents, overvaluin g the sale, and falsely inflating my income at my closing. These companies and agents have not quit playing the games of hiding under corporate shells. While Juliet Homes agrees to settle with TRCC today and ask for forgiveness, the pattern of bad behavior has not stopped. The individuals involved with my purchase included Bernard Kane, Jr., Doug Brown, Jorge Casimiro, and Norman Chapa., a convicted felon. These same individuals continue to build in Texas under the companies Tremont Homes and Juliet Homes. Juliet Homes continues to market and sell hundreds of homes registered under other builders, or not registered at all. Juliethomes.com new home listings do not match TRCC’s records.

On 1/11/07, I found 25 Juliet Homes unregistered and 54 registered under Tremont Homes with TRCC. I recently filed 79 complaints with TRCC against Juliet Homes and are currently under investigationJuliet Homes has deceived the real estate community and other buyers. For example, on 1/26/07, a local realtor listed Juliet Homes model home for sale on Houston Association of Realtors website at the address 1706 Aden Drive, 77003. According to TRCC open records, 1706 Aden Drive, 77003 is registered under Tremont Homes. The realtor and seller believed Juliet Homes as the builder and did not change the listing. Why was it registered under Tremont Homes with TRCC?The confusion of a marketing company and a homebuilder needs to be much clearer. Until Juliet Homes has been fully investigated by TRCC, a vote on the proposed agreed order today should not be considered. In the meantime, TRCC should implement new rules and regulations for marketing companies representing homebuilders, such as:
1. Marketing Websites. If a marketing company is representing a builder, it must be disclosed on all marketing material, including websites. At the bottom of each webpage the registered builder name and number must be displayed, for example “Juliet Homes is an authorized marketing company for Tremont Homes, registered builder #7401, Houston, TX.”
2. Marketing Material. All letterhead and marketing material must also display the registered builder name and number.

Since the Juliet Homes investigation remains open, the agreed order vote should be postponed. New TRCC rules and regulations on marketing companies representing homebuilders should be considered. I would be happy to answer any questions and appreciate any comments on this matter.Thank you for considering my position on this issue.Sincerely,Heather Mickelson Hmickelson2003@yahoo.com253-468-6378 cell phone

Mandatory Arbitration in Juliet Homes Contracts

Before you sign a new home contract - see if has an arbitration clause. Arbitration waives your right to sue in courts. Currently, both Juliet and Tremont Homes new home contracts include mandatory/ binding arbitration.

If arbitration is so wonderful, why is it mandatory? Are we citizens or subjects?

Are you sure your new home is protected? Are you sure your family, will not join the growing ranks of the homeless? Are you sure you understand arbitration and tort reform? Are you sure that the American Arbitration Association, hasn't stealthily already entered every phase of your life? Do you think you still have the right to a trial by a jury? Do you still think you can sue anyone who wrongs you? Do you still think frivolous lawsuits are those that happen to other people? Do you tire hearing any more about big business flagrantly squashing your rights? Do your eyes glaze over and your mind shut down when you hear all these things? Are you bored by this rhetoric? Is it all just to complicated for you to understand? I understand.
But, please read on. Because you have been majority deluded, confused and overwhelmed ... just so these things will slip right by unnoticed.
If you have a new home, new car, a car lease, a Visa, Master Card, American Express, Discover card, bank account, a cell phone, a storage room, electricity or even an exterminator. YOU have given up your seventh Amendment rights. You have given up your seventh amendment rights, you cannot sue any of these people. Sounds crazy doesn't it? Well, call any of them and ask if you have an arbitration clause in your contract with them ... because you do.
We are bombard daily, with harassing telemarketers, a mailbox full of trash offers and clutter ... our bills are stuffed with slick adds and offers. We don't have time to read all this junk..... And there in lies the problem. Big Business knows you don't. We are the new hurried, fast food, drive by cleaners generation, the multi taskers. ... with more on our plates than we can handle. So big business has used your over burdened life style to their distinct advantage. You are screwed. Those little offers or things you think are privacy propaganda, in your bills, they aren't, they say "if you continue to use our services and do not pay off your account immediately you are now accepted the following terms.....You have now accepted arbitration ... and you didn't even read it.
Not one person in this country, is not bound by an arbitration clause and the shocking part of it ... most don't even know it. But you will, when you become one of the enlightened and destroyed. And believe me you do not want to be.
Ignorance is bliss ... and you can remain blissfully unaware of the dangers lurking, that threaten you, your family, your home and your livelihood. But when it hits you, it will be, a rude awakening ... like a two by four right between the eyes. AM I am trying to scare you? You bet I am. Because many of us do not have the time to watch fear factor, we live it daily. And, you may have just signed on for a guest appearance.
Take your home for instance. You made your down payment. You make your payments on time, you paid your property tax, you have homeowners insurance. Your investment is safe. You are living the American dream. Not so Kimosabie. You have rolled the dice with your future, put all your money on the pass line, and you weren't even aware you were gambling.
Example: You have a lovely new home, all decorated, a manicured lawn, a place for your stuff, and somewhere to come home to. But what happens if you start having problems with that new house? You just call your builder for repairs right? What if he doesn't answer your phone calls, faxes, or emails. What if the problem continues to worsen ... as you try to get him to live up to his moral, and ethical responsibilities. You say well I have a contract. And you do.
Now..... you will take the time to read, all that raft of papers that were shoved at you at closing. Uh oh...earnest money contract, arbitration clause. Closing papers arbitration clause...warranty papers arbitration clause.
Your foundation is cracking, your walls have lines that weren't there before, the carpet is damp and your house is taking on a musty smell. Your children begin to be ill and Fido's' hair falls out. What are you going to do? Your wife is frantic. She is calling neighbors, many experiencing the same sort of problems. Many do not want to admit it and "patch up and dump." Some will get by with it, until the new owner sues them. Yes, the new owner can sue you, just can't sue your big builder. Big business, little business that is how tort reform works.
And yes, you all paid to have your house inspected and had a relator and you called them all. You can start at the governor's office and they will refer you into a vortex of time-consuming, catch 22's that will make you crazy. You will end up lastly at the Heath department. They can try to help you find temporary housing ... soon, or maybe later....if you qualify and of course fill out the paper work.
You have now filled out paper work for every agency in the state. You stay up all night filling out this waste of time. Then bleary eyed drag yourself to your day job. No one understands. They think you are a real putz and offer you their lawyer's phone number...thinking you just are not smart enough to handle your own affairs. Little do they know...yet.
They think they are not in any danger...and that you just do not understand how to hand these things.
You call you insurance company...you know that agency that has you safe in their out stretched hands. That agency you pay those hefty premiums to each month. Guess what, substandard construction and builder defects are not covered items.
You are on the phone with your lawyer, he has looked over your papers, and informs you, YOU cannot sue your builder, you have signed an arbitration clause.
You say, well lets arbitrate ... it is faster and cheaper and my house is deteriorating as we speak, my investment is being destroyed. He really doesn't want the case, but will take it for a substantial upfront fee. He knows neither of you are going to be happy with the outcome, so he gets his upfront. Many of these legal eagles also have arbitration clauses in their own contracts. The contract you must sign to have legal representation. And you have to have a lawyer no matter what AAA arbitration tells you.
Your shower falls out. Black puffy balls are growing out of your carpet. Your windows are leaking, your hardwoods have begun to buckle, the children are sick, their eyes are all red, they have constant sore throats, you are having migraines you think from all the stress, your wife is crying, and her nose is bleeding ...and your cat just died. ( Am I Exaggerating ... No unfortunately, I am not.) I am just reliving part of what happened in our neighborhood, compliments of our greedy, unethical, unscrupulous builder. He sold us our homes after filing a lawsuit against the roofer and subcontractors with no disclosure. Yes, I said, he sued ... the big boys still have the right to sue, this only applies to you and me, the little guys.
Arbitration is great protection for the mass builder. First, most of you can't afford it and second if you can roll out 30 to 100,000 dollars it is still an unfair playing field. The builders team of high priced, sleazy prostitutes can make chopped liver of you in short order. They do this for a living. In our case, one of the builders' law partners, was/is also a AAA arbitrator. You want him to rule on your case?
Why didn't you repair your own house?
First you didn't think that was your responsibility, it was the builders. Second you had no idea the amount of damage and third, when you found out how many thousands of dollars it would cost ... you couldn't afford it.
You hadn't planned on the down payment, the new drapes, the new lawn mower and then repairs? TO A BRAND NEW HOUSE! Did you figure an extra 20 to 150 thousand for that in your budget? Like us, you probably bought a new home so repairs would not be an issue.
Well, guess what else you can't afford? You can't afford arbitration. Nobody tells you what it costs. The American Arbitration Association will not even give you a total cost, but if you can't afford it ... they will be more than happy to send you a form that authorizes them to just charge all their monstrous fees as they occur, on to your credit cards. How ever many it takes. Do I have you attention now? Do you think you have entered the twilight zone. Well, welcome to our world.
Homeless in Houston
Jordan Fogal Please google my name for more information or check out HADD.org or HOBB.org, tort deform
3003 Memorial Court #2407 Houston Texas 77007
7138029727