Homeowners

They say Michael H. Clott had it coming.Considered by FBI agents and prosecutors to be one of the most incorrigible white-collar criminals to ever work in Maryland, Clott, 44, received the maximum penalty under federal law yesterday for swindling millions from homeowners in a crafty home-refinancing scheme -- 12 1/2 years behind bars without parole."

When some Baltimore residents take to the War Memorial Building floor this evening to comment on next year's proposed city budget, the Taxpayers Night event will mark the 10th anniversary of the Baltimore Homeowners' Coalition.The homeowners' group of about 1,000 members formed in 1989 to stem the city's escalating tax rate. Members have watched the city property tax rate drop from $6 per $100 of assessed value to $5.82.Although the drop might not be viewed as dramatic, coalition organizers estimate that they have saved Baltimore property owners about $140 million by harping on city leaders to reduce spending and streamline city services.

An estimated 40,000 Maryland homeowners who have faulty polybutylene plastic plumbing have five weeks to stake their claim to a $950 million national settlement -- one of the largest property class action suits in U.S. history.Under terms settling a Tennessee lawsuit that became final in late 1995, some 6 million homeowners nationwide are seeking compensation for property damage, repair costs and replacement of plumbing systems.In the past four years, a national hot line has received about 143,000 claims, totaling $360 million.

In the world of white-collar crime, Michael H. Clott was king.Less than two years after serving a seven-year sentence for selling fraudulent mortgages to unsuspecting homeowners a decade ago, Clott was back in federal court yesterday, facing charges that he bamboozled a new batch of homeowners in Maryland and New York.Dressed in ill-fitting, prison-issue work pants and shirt, Clott stood quietly in U.S. District Court in Baltimore, pleading guilty to swindling $1.3 million from dozens of homeowners who were trying to secure home-equity lines of credit.

For many homeowners, the first and last time they talk to their insurance carrier is just before they buy a house. Once they move in, most people stuff their policy in a drawer and never look at it again.But consumer groups and industry experts say that approach is risky - especially considering the rising cost of construction and other goods. Some may find the cost of rebuilding after a catastrophic fire or storm is a lot more today than when they first took out their policy. That's especially true for the millions of consumers who remodeled kitchens or finished basements using money borrowed against the rising value of their homes during the real estate boom.

Retail sales were up more than expected in January. Is it a sign that the great residential real estate slowdown is almost over? Hardly. The housing industry continues to move along at a glacial pace, with a rising number of homes for sale and home loans in default. The news is somewhat grim, with most of the private mortgage insurers announcing their first-ever (and massive) losses, as they are required under their PMI policies to pay out millions of dollars. Is help on the way? Let's consider what some of the more important pieces of industry news mean to Mr. and Mrs. Average Homeowner.

After years of watching their homes soar in value, some people are worried housing prices are headed for a fall. The Chicago Mercantile Exchange is hoping to allay those fears with a new financial product that could help homeowners insure themselves against a collapse in prices. The exchange is exploring the development of futures contracts tied to housing prices, the first of their kind. These would allow institutional investors such as insurance companies to make bets on the movement of housing price indexes in specific regions, including the Baltimore-Washington area.

Homeowners who are putting in additions to accommodate family moving in are giving a much needed boost to business at Trademark Remodeling in Eldersburg. At Starcom Design Build in Columbia, clients feeling a bit more confident about the economy are investing in home repairs and tackling small renovations. And at Wall to Wall Construction in Catonsville, homeowners who might have launched big home renovations in more robust times are still spending, though not as much and on smaller projects.

Twenty-six Abingdon homeowners have filed individual lawsuits in Harford County Circuit Court against Equity Homes Inc., a Bel Air-based builder, alleging that inferior materials caused their townhouse condominium roofs to leak, deteriorate and become structurally unsound.The owners of the 9-year-old homes at the Cedars, off Laurel Bush Road, are contending that the builder, Robert W. Haase, is not honoring a 10-year warranty on their three- and four-bedroom townhouse condominiums.The owners contend that the builder refused to replace the roofing plywood, popularly called "FRT" for "fire retardant treated."