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