| Making repairs and renovating your home can | | | | extensive than initially thought, and that if |
| add thousands of dollars to your property | | | | the owner doesn't take out the loan and pay |
| value. Some of these fixes may require | | | | him X amount, he won't finish the job. Faced |
| immediate attention, or have simply been put | | | | with the prospect of having a hole in her |
| off for a long time. If you don't have enough | | | | roof, the owner signs the loan papers. |
| money on hand to take care things, what can | | | | |
| you do? Take out a home improvement loan, | | | | Once the loan is in place and the contractor |
| which will cover the costs of fixing up your | | | | is paid, he has no motivation to finish the |
| home. | | | | job. He may simply leave town with the money. |
| | | | Or, he might finish the job, but do it |
| These loans can be lifesavers if there are | | | | poorly. The homeowner gets stuck with a |
| structural or roofing problems with the | | | | half-finished or badly done repair job, and |
| house, and homeowners can't afford to repair | | | | high loan payments. If the owner can't make |
| them. One danger with these loans is the fact | | | | her loan payments, she faces foreclosure. The |
| that there are a lot of unscrupulous people | | | | lender then gets the house, and can sell it |
| out there, waiting to take advantage of naive | | | | for a profit. |
| homeowners. The world of home improvement | | | | |
| loans is no exception. | | | | These scams target the elderly and low income |
| | | | families. The elderly are particularly |
| Home repair loan scams typically involve | | | | vulnerable because they tend to be more |
| someone contacting you about fixing up your | | | | trusting, and alone. They get pressured and |
| house. These people may go door to door to | | | | conned, and end up losing everything. |
| advertise their services, or they may cold | | | | |
| call people in the neighborhood. There are | | | | If you are thinking about getting a home |
| also contractors who walk around the area, | | | | improvement loan, be careful. Only go with a |
| and take note of any houses that appear to | | | | lender or contractor that you have contacted, |
| need repairs. They then contact the | | | | not the other way around. Compare loan terms |
| homeowner, and sell her on the importance of | | | | and estimates on construction costs. Go only |
| fixing said problem before it gets any worse. | | | | with reputable companies that have been in |
| The homeowner agrees that something needs to | | | | business for a long time. You may also |
| be done, but is at a loss as to how to pay | | | | consider contacting a lawyer before signing |
| for the job. Luckily, the contractor happens | | | | any kind of document. Don't hand over any |
| to have a friend in the lending business that | | | | money to lenders to cover up front costs, and |
| could help her out. Trusting that both | | | | don't pay your contractor until work is |
| parties are on the up-and-up, the owner | | | | completed. That way, you can make sure that |
| agrees to the job. At this point, the | | | | you won't be left holding the bag. |
| contractor may start on the job, for example, | | | | |
| repairing a roof. When faced with loan | | | | Eric Bramlett is a professional real estate |
| documents, the lender uses high pressure | | | | broker in the Austin TX real estate market. |
| tactics to get the owner to sign quickly. If | | | | Eric works hard to ensure that you find |
| the owner notices that the loan is for a | | | | exactly what you're looking for. Let Eric |
| higher amount than was agreed upon, the | | | | guide through the process of buying or |
| contractor then says that the job is more | | | | selling Southwest Austin real estate. |