Should sellers do a presale inspection? PLUS...Beware of mortgage modification scams!

Wise buyers always do a professional inspection on a home they want to purchase. But in the last few years, sellers have also begun doing inspections–before putting their homes on the market.

When you're selling, a presale inspection avoids problems by making buyers aware of any defects before closing the deal. The seller's inspection may also uncover a problem you didn't know about. In that case, you can decide to fix it or offer buyers an allowance for the repair.

You should make a list of everything to be done, get estimates, and then decide what to do before putting your home up for sale. Your real estate agent can help set priorities and advise you which fixes will give you the best payback.

If you already know about defects, you can correct them before the inspection. Or you can wait and get the inspector's professional opinion of what to do. You can then show the inspection report to the buyers along with copies of the invoices for the repairs.

It's vital to use a good inspector. Ask your real estate agent and others for recommendations. Check references and be sure to get a written report to show to buyers.

WATCH OUT FOR MORTGAGE MODIFICATION SCAMMERS!

In the last few years, outfits have popped up offering home owners "forensic loan audits." They say they'll review the homeowner's mortgage loan documents, establish whether the lender complied with federal and state laws and speed up the process of requesting a loan modification.

The truth is that even if the audit reveals errors in the loan documents, the process very rarely results in a loan modification or rescind.

Even worse, scammers often make false promises that they will secure a loan mod, principal reduction or have the loan rescinded. Then they just string homeowners along or simply disappear. Here's how to protect yourself:

• Don't trust anyone who guarantees results.
• Don't work with anyone who asks for an upfront fee.
• Don't sign any contracts under time pressure and don't sign any you don't understand.
• Don't stop paying your mortgage, even if they tell you to.
• Don't give anyone your personal financial information, except an appropriate loan help organization.

Fortunately, free, legitimate help is available from the not-for-profit Homeownership Preservation Foundation. Call 888-995-HOPE (toll-free) or visit: http://www.995hope.org. The Department of Housing and Urban Development (HUD) also lists by state legitimate housing groups that help homeowners. Visit: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure/local

And of course, we're always here to answer any questions.... Have a great day!

PS  Thinking of  taking advantage of today's affordable home prices and historic low mortgage rates to upsize, downsize or refinance? Please call or email us now to discuss your situation.

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