Dear George: "I purchased my ex-wife's interest in our homestead some time ago. I have been paying her according to the divorce settlement agreement. I am now trying to refinance the remainder of the note at a lower interest rate. Her response to the lender requesting the payoff is about $5,000 more than my calculations. Should I allow the lender to pay her what she is requesting then try to recoup the difference later in court? Or, should I challenge it now to establish the correct payoff?" -- Need To Know

Dear Need To Know: I don't think it's a good idea to provide numbers to a lender that you believe to be inaccurate. Can your ex-wife and you agree to hire an objective third party for the express purpose of determining the correct payoff amount?

Dear George: "I am an elementary school teacher in California. My fiancé and I would like to start looking for a house to purchase. I've heard of '0 down' mortgages for teachers. I've also heard that teachers could get discounts some other ways. Where could I find more information on this topic?" -- Starting To Look

Dear Starting To Look: Allied Mortgage Capital Corp. offers a "zero down" program for teachers only in all states except New York and Vermont. Another source for low or no down payment mortgage loans for teachers is TeacherLoans.com.

In addition, HUD makes homes available to teachers with a 50 percent discount.

Local real estate brokers will be able to suggest local and state-based programs, if available.

Dear George: "I am in the process of buying a home. I have been told that FHA regulations limit the percentage a seller can pay toward a buyerş s closing costs. Is that true? If it is, how much is that percentage?" -- Currently Negotiating

Dear Currently Negotiating: The seller "contribution " limit is 6 percent of the mortgage (loan) amount. For details, please speak with you broker or lender.

Be aware that seller contributions must be negotiated within the terms of a purchase agreement. Whatever you can get will lower your closing costs and make a home purchase easier.

Dear George: "I believe I may have toxic mold in my home. I notified my insurance company, two weeks have passed, and the insurance adjuster has not yet contacted me to inspect my home.

When does one know that it's time to contact an attorney to help with all this? I have also heard the most serious kinds of mold can't be removed from the property. How would one know if it's best just to tear down the home in order to rebuild?" -- Worried

Dear Worried: Express your concerns regarding the length of time that has passed without any response from the insurance adjuster. Make sure you document the date you first reported the suspected problem. Include the number of your insurance policy. Tell the insurance company what you want them to do.

One method to accomplish this is to place a phone call to the appropriate department at your insurance company. Deliver the information by phone. If the company gives you an expected date by which you should hear from the adjuster, state that in your letter too. Get the person's name with whom you are speaking. Tell him or her you are writing a letter to the company in which you will restate the telephone conversation. Do write the letter. Send it the next day. Notify your insurance company again, in writing and by certified mail with a return receipt requested. This way there is no question as to when notice was sent -- and received. Keep all paperwork for your records.

If the company still doesn't perform, then call the department of insurance in your state.

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George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: January 25, 2002

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