A Connecticut man promoting a new mortgage-relief program for Chinese drywall homeowners is facing his own troubles in his drywall court case, records show.
A federal judge issued an $8,000 fine against Slidell Property Management LLC and its principal, John F. Campbell, for missing a court-ordered mediation session Monday, court records show. They must pay $1,000 for each person who appeared at the session before it was canceled, U.S. District Judge Eldon Fallon said.
Fallon, who is overseeing a consolidated drywall court proceeding, also ordered Campbell to appear in his New Orleans courtroom next week or risk having his lawsuit dismissed.
Campbell, of Wilton, Conn., declined to comment on the issue Friday.
His company is suing a Chinese drywall manufacturer, a building products supplier and a homebuilder over corrosive drywall in 20 rental properties it owns in Slidell, La. Like hundreds of other lawsuits, it contends the drywall emits corrosive sulphur gases that have made the properties uninhabitable and nearly worthless.
Campbell referred to his drywall experience during several community meetings throughout Florida earlier this month, hoping to drum up homeowner support for a mortgage-relief proposal that he submitted Thursday.
The proposal calls on Fannie Mae and Freddie Mac to suspend Chinese drywall homeowners’ mortgage payments until the home is remediated. The suspension would be contingent on the homeowner gutting and rebuilding the home with money from court settlements.
After the home is fixed, the outstanding mortgage principal would be reduced to just below the home’s current market value.
That would help Chinese drywall homeowners who owe more on their homes than they are worth, Campbell said.
“That’s the most important part of this,” he said. “Without that, all you’re going to have are people still underwater on their homes whether it’s remediated or not.”
The proposal also suggests the government hire Chinese Drywall Recovery USA, a for-profit company formed by Campbell and his wife, to either manage the program or act as a consultant.
Campbell submitted the proposal to Florida’s congressional delegation plus senators from Alabama, Louisiana and Mississippi, other states with high numbers of Chinese drywall cases, but not to Fannie, Freddie or their conservator. He said he did so in hopes of exerting political pressure on the two mortgage giants to implement the proposal.
Calls to Fannie and Freddie were not immediately returned Friday.
Rep. Vern Buchanan, R-Sarasota, “vows to look into this important matter,” spokesman Max Goodman said. Sen. Bill Nelson’s office forwarded the proposal to the Federal Housing Finance Agency, Fannie and Freddie’ conservator, spokesman Bryan Gulley said.
Duane Marsteller, Herald staff writer, can be reached at 745-7080, ext. 2630.
