First, get a professional appraisal of your home from a licensed appraiser. Ask your lender for names of its recommended appraisers in your area. Your appraisal cost should be $300 to $400.
Second, understand that lenders can set their own rules for canceling PMI premiums (which are often $100 or more per month), within federal law. If your mortgage is owned by Fannie Mae or Freddie Mac, they require at least 20 percent homeowner equity and an on-time payment record before canceling PMI.
Third, if you don't have your lender's required 25 percent equity to cancel your PMI premiums, then you can decide if you want to make a pest of yourself to try to persuade the lender to cancel the fees.
If you have solid evidence of at least 20 percent home equity, based on the professional appraisal, you might want to sue your lender each month in small-claims court for refund of your monthly PMI premium. However, be sure to always pay your full monthly mortgage payment, including that PMI fee.
After a few months of default judgments, most lenders give up and cancel the unnecessary PMI. But it's a pain to file the breach of contract and/or fraud lawsuit each month, pay the small-claims court fees, and have the lender served with the summons and complaint (usually by certified mail; the small-claims court clerk can help with this).
I've never used this method, but many readers report success with it.
DEAR BOB: I have owned and lived in my townhouse since 1981. My neighbor is extremely loud and operates his business over eBay with much vehicular and foot traffic. I have had his customers knock on my door by mistake. Although we homeowners are not allowed by our conditions, covenants, and restrictions to have an active business with traffic, the property manager refuses to act. If I decide to sell my townhouse, must I disclose this neighbor as a "preexisting condition"? -- Sandra B.
DEAR SANDRA: Have you politely talked with your neighbor about the noise? Maybe he isn't aware of the disturbances.
That happened to me a few months ago. My neighbor is a hard-working, extremely successful accountant who leaves home at 5:45 a.m.
Depending on his mood, he drives his noisy Ferrari or quieter Porsche. They're beautiful cars. But at that early hour, I really don't enjoy them waking me up.
One morning, when the noise seemed especially loud, I politely called him to ask if he could be quieter when he left for work each morning. He said he didn't realize the noise was so loud. Since then, I've slept blissfully as he drives quietly away.
In most communities, it is now legal to operate a home business, with some restrictions. Many cities even welcome home businesses as long as a business license is obtained (to generate tax revenue).
As for your disclosure of the neighbor's home business, if it is legal, it probably need not be disclosed to prospective buyers of your townhouse unless it is a neighborhood nuisance. If the disturbance has risen to the level of a nuisance, you and other neighbors should consider bringing a private nuisance-abatement lawsuit against the neighbor. Consult a lawyer for details.
DEAR BOB: My brother and I bought a beachfront condo as tenants in common. Our heirs will inherit half of the condo when one of us dies. However, we would like for the surviving brother to have the right of first refusal to buy the other half from his brother's heirs . In both of our situations, our heirs are adult children. Is there a way this can be done? -- Rex H.
