When purchasing a home it is essential that you protect your investment. One sure way to accomplish this is to have a home inspection of the property. It is one way to point out flaws and let you know if you are making a sound investment.

When do I get one?

Once you have a home under contract then it is time to have it inspected. Many states have time limits for this to be accomplished so it is vital to stay within your time frame. If you do not, you are agreeing to buy the house “as is”. You can still have an inspection, but you will have very little recourse if problems are found.

Finding an inspector

This is one area that you don’t skimp on. Do not automatically go with the lowest price. Thousands of dollars can be resting on the outcome so this is not an area where you cut corners. Your lender will be able to suggest inspectors that they have working knowledge of.

You also want to make sure that your inspector is insured, bonded and have all of the necessary credentials, including a license. Every state has their own designations to promote professionalism. Inspectors who are members are willing to stay informed and remain up-to-date on their profession.

Make sure that you go over the total cost, what they will be inspecting and if there are any exclusions. Ask how long a typical inspection takes, as a thorough inspection should take from 2-4 hours, depending on the size of the home. Also verify with them that you will be present for the inspection

The inspection

The day of the inspection your inspector will meet you at the home at the designated time. This is something that you will want to be present for, especially if this is your first home. When they arrive, check their credentials- never assume or take anyone’s word for it. A good inspector will have no problem with this.

Make sure to bring a pad of paper and a pen to take notes. Your inspector will give you notes and advice as you advance through the process. This is information that will help you maintain the home.

After the inspection

Your inspector will provide you with a printout of the inspection. It will cover all areas of the home in detail and list all of the discrepancies they were found. This is what you will need to assess if the home is in good condition.

The inspector will always find problems, no matter how well it has been taken care of. You just have to decide if they are something that is a deal breaker. Now you can negotiate with the seller on what you will ask for them to fix.

If they agree to repair or replace something make sure it is finished before closing and that they provide documentation of the work. And everything should be noted in the sales contract, including dates. Once the work is complete you may want to have the inspector make a return trip to verify the validity of the work.

What are My Options?

Are you drowning in debt? Is your mortgage underwater? Do you face foreclosure or mortgage delinquency? Believe it or not, despite such hardships and overwhelming financial challenges, there are some proven ways to find relief and get your life back on track!

Each of these cases is unique, solid legal maybe your first step to keeping your head above water. Not every state offers the option to simply walk away from an unsustainable mortgage. Be careful severe tax penalties may result. Finding a trusted financial and legal advisor could literally save you tens of thousands of dollars.

Even if your home value has dropped below the mortgage owed, keep in mind the dwelling serves as shelter. At this point your most likely not in the position to afford moving costs even if it’s a “cheaper” place. Find comfort in knowing a mortgage has a set life span before you may own the home free and clear having paid off the mortgage.

Homeowners find renting out their place is a way to pay the mortgage, taxes, and maintenance and still keep their investment. By renting the home out to credit worthy tenants allows you to cover most expenses and adjust your own living arrangements settling into a less costly place.

Some borrowers offer their mortgage lender the opportunity for “short sale” permitting them to sell the home for less than the mortgage agreeing it will satisfy the outstanding loan obligation. Occasionally, the mortgage lender may require you to convert the outstanding balance short-fall into unsecured debt. Even if the lender does forgive the balance, always consult a lawyer in case the IRS treats it as taxable income.

Everything is changing fast but the Federal government is pushing mortgage lenders to extend favorable “loan renegotiation” terms. Take advantage of these offers to find relief by adjust interest rates, number of payments and even balance due. In the case of serious illness causing missed payments, many lenders provide the ability to roll any missed payments to start fresh with a new balance term.

Depending on the state you live-in

Some borrowers might simply walk-away. It could be the most cost effective option, consult a lawyer or financial advisor. Perhaps, negotiate what’s called a deed-in-lieu, where the bank agrees to take the deed and forgive the balance owed on the mortgage. In these times it’s common for borrowers to make an “Offer the bank a deed-in-lieu” then stops making payments while continuing to live in the house. This approach gives you a certain amount of leverage, because taking your offer saves the bank the trouble of foreclosing.

However, your last option might be to consider bankruptcy as a way to generally keep retirement plan savings that would have otherwise been lost. Remember, it’s wise to use a lawyer for the bankruptcy process with varying state rules on what you get to keep and what assets are not protected. Additionally, you might be able to keep employment tools of the trade important to earning an income.

Regardless, start early watch for warning signs to keeping your mortgage from going underwater by cutting expenses across the board and maintaining a lifestyle within your true means.