Lack of prompt survey work calls for refund

Dear Bruce: I am currently paying on a “contract for deed” for a lot. The lot next door has been on the market and I agreed to purchase it. The title company recommended a surveyor and the mortgage broker said that a survey on both lots must be presented. I went to see the surveyor in person with the copy of all the legal descriptions and a check. That was a couple of months ago, and I have yet to receive my survey – and very possibly will lose the favorable financing. They took my money and they keep putting me off, saying they’re busy and so forth. Do I have any recourse if the deal falls through? Would it be legal for me to buy a large ad in the local paper stating their shabby business practices as long as it only contains the facts? – Don, Homosassa Springs, Fla.

Dear Don: Regarding your last idea: Don’t be foolish. You will very likely find yourself entangled in a libel issue, and who needs that? Why you’ve been so patient is another matter. In the event that the surveyor refuses to go out there the same day you visit his office, I would demand a refund, although you may have to go to small claims court to get your money. Get a surveyor who can knock this out in a day or so. A survey of a couple relatively modest-sized lots is no big deal, and I don’t know why it’s taking him so long. Watch yourself for slander as well, meaning talking about him. He may have the last laugh there, too.

Dear Bruce: I am 80, and my house needed a new roof and several new windows. I had a certificate of deposit from which I needed the interest for monthly expenses. I got information on a reverse mortgage. I had all the information, instructions, etc., but now it seems too good to be true. The idea is when I deeded the mortgage, insurance would pay off the mortgage and my family would have the house free and clear. What are the pros and cons? Is it as good as presented? I have a friend who is also interested in getting one. – Reader, Auburn, Ind.

Dear Reader: If everything is as you have described it, it seems to me that you have matters well in hand. You mentioned mortgage insurance. The term mortgage insurance ordinarily suggests life insurance, and at your age I’m wondering how you worked out a life policy? It seems to me that this is not a major issue. What is left for your family will be what’s left. There’s no reason for you to impoverish yourself or do without so that you can leave an estate. I’m hopeful that your children will agree with that.

Dear Bruce: We bought a piece of waterfront property with a six-year-old seawall. During June, heavy rains came and the wall collapsed. Is there any way that we can write off this loss as an uninsured event? B.C. via e-mail

Dear B.C.: A capital loss, under some circumstances, can be deducted, but only when the loss reaches a number proportionate to your income. In addition, whether this was normal wear and tear since it was six years old is a question that you would have to have some expert determine. If the numbers are significant, sit down with an accountant. He will require some support information from someone that is knowledgeable about seawalls. As an example, how long are they expected to last? I have no way of knowing. The type of construction, wood or concrete, etc., also is a factor.

Dear Bruce: At what point can I get rid of my PMI, if ever? – M.B., via e-mail

Dear M.B.: Private mortgage insurance is simply an insurance company that guarantees the first 20 percent of your loan, or whatever fraction is not covered by your down payment. At such time that your interest in the home exceeds 20 percent, you can apply to the lender to have the PMI eliminated. This will require you paying for an appraisal and some other minor expenses, but it is certainly worthwhile. If possible, try to avoid the PMI to begin with. PMI does serve a useful purpose. It allows folks who otherwise would not be able to purchase a home to do so. The cost, however, is significant.

Bruce Williams is a national radio talk show host and syndicated columnist.