In the summer of 1996 I applied for a mortgage and bought the condominium where I still live.
I was newly divorced, and not particularly knowledgeable about such things. But I’m smart and my math skills are good and my realtor was and still is a personal friend. So it was that, twelve years ago this coming October, I sat in the offices of a real estate company signing a small mountain of papers. I did not read them, nor would I have understood them if I had. They were presented to me as the standard contracts for this situation, and I have no doubt that was exactly the case.
My realtor recommended I buy insurance on the contents of my condo, which I proceeded to do. It costs me a pittance every year to ensure that, if one of our Kansas tornadoes takes away my computer, furniture, clothes, dishes, and appliances, I can replace them. The dues I pay to the homeowners’ association every month provide for lawn mowing and other common-area maintenance, snow removal, and an escrow account for painting and roof repair. And hazard insurance on the building itself.
Not once in the past twelve years have I regretted that decision. I love my home; it makes me happy to live here. I have had no trouble with my mortgage company, nor they with me.
Earlier this year I succumbed to a barrage of advertising from my mortgage company, and began to look at refinancing. The interest rate they were offering was substantially lower than what I was paying. After annoying the heck out of them with a whole bunch of questions for several weeks, I decided to go ahead with it. They emailed me the paperwork, and this time I decided to run it by my attorney before signing.
The attorney found nothing wrong, but he did see that they were charging me for hazard insurance on the building itself. The mortgage company requires that the property be insured, and that’s understandable. But since my homeowners’ dues buy that for me, I asked the mortgage company to take that charge out of the contract, and they did so. I asked the insurance agent to fax a copy of the policy to the mortgage company, and they did so. Dust off hands, project accomplished, case closed.
So here’s my question: Whose responsibility was it to have found, twelve years ago, that I was paying twice for the same coverage? Since I choose to accept responsibility for my life and my decisions, I can hardly blame anyone else for this. I will consider the extra money I have spent my penance for not being a little more circumspect.
But I am hardly the only person living in a condominium, and I find it strange that the “standard” mortgage contract is the same for both houses and condos when, in fact, they should differ in this one important aspect. I also find it strange that this may not be part of the training for real estate agents.
I don’t intend to pursue this any further. But if you know someone who’s planning on buying a condo, you might share this with them.
Posted by Sharon under Observations | No Comments »