Builder guts homes with Chinese drywall

Their homes tested positive for Chinese drywall. Now, a bailout for an entire Vero Beach neighborhood. The builder is stepping-up and gutting homes.

Tamara Malash is getting ready to move, but not by choice, "As you can imagine it was quite a surprise to find out we had it." "It" being Chinese drywall is causing problems with everything from homeowner's health to damaged appliances.

Down the street, the Hanwells are packing up too. In fact, more than a dozen homeowners are vacating Coverty Place in Vero Beach. Fred Hanwell says, "The wiring is still turning black. The plumbing is black. The air conditioning coils, everything is black." The process for many, like Fred Hanwell, began only two months ago. He received a letter from Lennar Homes. Neighbors tell us, the builder informed them their homes could have Chinese drywall. When many tested positive, with small amounts, a decision was made. Hanwell says, "Gut the house. Down to the studs. Taking out all the wiring, plumbing, ac units, duct work and then rebuild it."

Hanwell says he was told Lennar will now pay more than $100,000 dollars per home. New appliances, new construction, and rentals for everyone for four to six months. Tamara Malash says, "We are beyond happy that we have a builder who is sticking around to help us."

The Malash's and Hanwell's say they never felt sick from the drywall, but are glad their homes will be saved. Neighbors say movers are coming this week.

We tried to reach Lennar Homes, but received no response on why they are doing this. Neighbor tell us they were told it's so that Lennar Homes can re-coup their losses and go after the manufacturer.