Must Seller Always Disclose L-P Siding?

Q: This fall I purchased a home in Issaquah. The disclosure form didn't say the house had L-P siding, and I wasn't told. Should this have been disclosed to me, and if so, what actions should I take?

A: Assuming you do have Louisiana-Pacific Inner Seal Siding, (several other products look like it) your question raises some interesting issues. Certainly if the siding's failing and the sellers knew it, they were legally bound to disclose it before the sale, says Seattle attorney Lawrence Glosser. But what if it wasn't failing - and they knew they had L-P and didn't tell you?

Glosser says the way the state-mandated disclosure statement is written, there's nothing requiring owners to reveal the presence of a product like L-P that's been the subject of a big lawsuit or recall. Additionally, the law doesn't require owners to know everything about the history and working condition of their house. However, because L-P siding is now the subject of a multimillion-dollar class-action settlement, some local real-estate companies are putting special addendums on purchase and sale contracts involving L-P houses. Did you get one of these?

Your recourse - or lack of it - really depends on the facts of your case. If the owners lied and you can prove it, you can sue. (For possible proof, check whether the previous owners filed a claim against L-P, as part of the class-action settlement.) If you hired an inspector, who "failed to identify it, or misidentified it, then there may be some course of action," Glosser says. Ditto if the home was advertised or represented as having a siding other than L-P. And you'd be wise to bone up on the class-action suit. For information call 800-245-2722.

Q: I'd like to refinance my house to pay off almost $50,000 in debts, including $28,000 - my husband's share of our home equity. However, my loan company wouldn't take my application because my debts are being paid through Consumer Credit Counseling Service. My monthly income is about $3,500 and I have $100,000 equity. Is there any way I can refinance?

A: Gary Lange, owner of Seattle's Bay Mortgage, says likely you can, but you must be careful to not get taken advantage of. Because of your situation, particularly your high debts, no lender will offer you the best deal going - for example, the recent interest rate available of 6 5/8 percent, plus 2 points, for 30 years. Rates like that are reserved for borrowers with pristine credit, low debt and steady income. Rather, Lange says your application would likely be accepted by a lender who'd offer you something like 9 or 10 percent interest, plus 3 points, for just one or two years. This is even if you're in Chapter 13 (debt reorganization) bankruptcy. (To be affordable, your payments would be structured as if you were paying over 30 years.) If your credit is absolutely clean for two years, Lange says you likely can refinance at a lower rate.

However, Lange warns that initially there are less than scrupulous lenders who prey on desperate people, and you need to avoid them. "You don't want to pay 15 percent interest and 10 points." Nor should you get soaked for up-front loan-approval fees. Lange says it should cost you no more than $25 - the cost of your credit report - to find out if you can get financing. If so, then you can spend $400 for an appraisal (the next step). He advises you to seek out a reputable, well-established local mortgage broker.

Q: My attempt to have cable Internet access installed in my North Seattle apartment was unsuccessful because the existing coaxial cabling is insufficient. Are there any legal requirements for an apartment owner to provide basic infrastructure capable of delivering these services?

A: Landlords' legal obligations are set forth in the state's landlord tenant act; it says owners must provide the basics, like working heating and plumbing systems. Whether you also get creature comforts - from cable-TV access to carpets to draperies - is up to the owner's discretion. That said, Tom Hoban, head of Coast Management, which oversees 7,000 Puget Sound apartments, says owners increasingly are looking at adding Internet or other electronic features.

If vacancy rates climb, you may see more of that as owners strive to attract tenants. Meanwhile, Hoban says that when tenants lease or rent an apartment, "the cabling in the building ought to be one of the issues they ask about before they rent, if that's important to them."

Home Forum answers readers' questions every Sunday in the Home/Real Estate section. Send questions to Home Forum, Seattle Times, P.O. Box 70, Seattle, WA 98111, or call 206-464-8510 to leave your questions on Home Forum's recorded line. The e-mail address is erhodes@seattletimes.com

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