Buyer beware?

Writing about a "Confectioner's Delight" of a Berkeley, Calif. Victorian on Redfin's San Francisco Sweet Digs site back in March, blogger Tracey Taylor noted another "painted lady" down the street. In the window was a sign, "Don't buy 2122 Ward," referring to another home down the block.

"Another intriguing discovery - and completely mystifying. I would love to know what that’s all about," Taylor said at the time, posting a picture of the sign on the blog.

Today, 2122 Ward St. is the subject of a cover story in the latest edition of the East Bay Express, the free alternative weekly paper, which describes (among other things) how Zillow has been enlisted in the campaign to deter potential buyers.

The story goes into great detail over a dispute over the property, which involves allegations by the home's former owner, Jim Hultman, that he lost it after Fairbanks Capital Corp. took over servicing rights to his loan and foreclosed on it -- without proper notice, Hultman claims.

Without admitting wrongdoing, in November 2003, Fairbanks agreed to pay $40 million to settle allegations the company failed to post borrowers' payments, charged unauthorized fees, and used dishonest or abusive tactics to collect debts (see Inman News story).

Although Hultman is making similar allegations, he told the Express he opted out of the settlement, because once it was divided up between 300,000 homeowners, it only amounted to less than $200, on average, and he didn't want to give up his right to sue Fairbanks (which now does business as Select Portfolio Servicing Inc.).

At least one neighbor is sympathetic to the former owner's charges that he was cheated out of his home, allowing Hultman to post signs in her yard warning prospective buyers against purchasing the home because it was "stolen by fraud" and other alarming details, such as an allaged lack of gas service on the property, a bad foundation, and a sewer line that needs replacing.

The current owners -- Loren and Jeff Toews, former NFL players who invest in real estate -- tell the Express they are none too thrilled at being stuck with the house, which they purchased in 2005 for $635,100 at a courthouse auction.

Loren Toews, a former Pittsburgh Steelers lineman who's pictured in the story sacking Dallas Cowboys quarterback Roger Staubach during Super Bowl XIII, told the Express he and his brother had the misfortune of being the highest bidders.

"We happen to be the easiest dog to kick, because we bought the house. But (Hultman is) kicking the wrong dog," Toews told the weekly.

A Zillow.com user, "jimshouse," has uploaded two photos of the house that are the only pictures accompanying its profile on the valuation site. The pictures depict the house spray-painted with graffiti reading "STOLEN PROPERTY -- LOREN TOEWS PITTSBURG HOUSE STEALER."

Another local paper, the Berkeley Daily Planet, ran a story in April that described police as "clueless" about who was responsible for the graffiti. The pictures were still up on Zillow as of Wednesday evening.

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