If you refinanced a second mortgage, there can't be a prepayment penalty if the loan was made under our state's consumer loan act and has an annual percentage rate above 12 percent. Ditto, federal law also prohibits prepayment penalties on certain types of high-interest loans.
So how's a consumer like you to know which category fits? With your loan documents in hand, call Thomson's office at 800-372-8303. He says you might be able to get your money back, but it's impossible to tell that without more information.
Q: The bylaws governing our 10-unit condo stipulate that major repairs require two or more bids. However our board got only one bid for a job that's going to cost thousands. The majority of owners are willing to go with this. Can we refuse to pay the assessment? Can legal action be taken against the board, or is there a mechanism to mediate this problem?
A: Attorney J. Anthony Hoare thinks that you could indeed refuse to pay because the assessment "was made in an improper manner"; however, balking might not do you much good.
"That improper assessment could be quickly cured by calling a meeting of the members, and the members probably have the ability to override the bylaws. Often a two-thirds vote will overturn it," Hoare says. As for taking legal action against the board, that's the least financially rewarding way to get satisfaction; not only must you personally hire an attorney, but your condo dues will be used to defend the board. Thus you'll finance both sides of the argument.
A mechanism for mediation depends on whether your bylaws have a dispute resolution provision. If not, you may still be able to use a mediator, but only if both sides agree, Hoare notes.
Q: I just bought a house. Then I discovered the front is an addition that must have been built without permits because there's no concrete foundation. This wasn't disclosed on Form 17. I think the work was done several owners ago. The work was poorly done and the trusses are sagging. Should I contact the building inspector? Otherwise, what recourse do I have?
A: Attorney Michael Brandt, of Reaugh Fischnaller Oettinger Merker & Luppert, suggests you first get professional repair estimates. They'll help you decide whether it's worth your while to hire an attorney, which is very likely your only avenue to a solution. There is no agency that will solve this problem for you.
If repair estimates are modest, the cheapest thing is just to fix it and forget it. If costs will be significant, then Brandt says you should take the estimates, plus your Form 17 disclosure statement, to a real estate attorney who can advise you on the best way to proceed. It's possible you can go after the seller (even though the seller didn't do the work), the seller's real estate agent or your home inspector, if you hired one.
Short of suing in civil court and going to trial, you may be able to get financial satisfaction by having the attorney write a strongly worded demand letter to the likely responsible party. Or you may go to arbitration, mediation or even have your sale voided. In certain cases, the law allows you to recover your attorney's fees; however, you should expect to pay up front, Brandt says, because lawyers rarely take cases like yours on contingency.
If you do involve your city building inspector be aware that you - not the previous owner - may be required to bring the house up to code.
