Michelle C. Carr-Crowe, Your Family's Real Estate Consultant for Life©

Go with your gut. You said, "I feel I should have it inspected." Just do it. However, be sure there is no referral fee your home inspector will receive from the company he recommended--just ask him if he receives any compensation for referrals. It's always better to have peace of mind--if you spend $300 and find everything is OK that's better than NOT spending it and always worrying if there's a problem. Also call about 3 sewer pipe replacement companies and ask the cost of doing it at your property AND whether they know of any problems or other replacements in the immediate neighborhood, and check with nearby neighbors as to whether they have had problems or know of any problems. - Sat Oct 4 2008, 20:14

Check out Hope for Homeowners, a Federal govt program designed to help people like you. See the link below.

Here is a brief synopsis:

Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.

The list of participating lenders is not available yet. We will publish it in the coming days.

The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.

The program is effective from October 1, 2008 to September 30, 2011.

As many as 400,000 homeowners could avoid foreclosure through this program over the next three years. If you are having trouble making your mortgage payments, HOPE for Homeowners may be able to help you, by refinancing your loan into a new 30-year fixed rate loan with lower payments.


How the Program Works

There are four ways that a distressed homeowner could pursue participation in the HOPE for Homeowners program

1 Homeowners may contact their existing lender and/or a new lender to discuss how to qualify and their eligibility for this program.

2 Servicers working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner into a HOPE for Homeowners loan.

3 Originating lenders who are looking for ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners.

4 Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure. - Sat Oct 4 2008, 20:08

The federal govt is trying to help people like you, check out HOPE for Homeowners instead.

Dept of RE just issued big warnings against companies collecting advance fees like you mentioned. Stop talking to that company until you know all the facts --check the BBB or do a search with the company name + complain or complaint.

Hope for Homeowners, a program created by Congress to assist homeowners at risk of loan default and foreclosure that will allow some homeowners to refinance into more affordable FHA-insured mortgages, launched Wednesday.
An estimated 400,000 homeowners could avoid foreclosure through participation in this program, which is voluntary for lenders and is scheduled to run through Sept. 30, 2011.
That program is among an assortment of federal, state and industry efforts intended to stem the tide of foreclosures.
Under Hope for Homeowners, lenders will determine a homeowner's eligibility and consider loan modifications to lower the monthly mortgage cost, and can also consider whether to take a loss on the difference between an existing loan and a new loan set at 90 percent of the home's current appraised value.
Existing mortgages must be originated on or before Jan. 1, 2008, and existing mortgage payments as of March 1, 2008, must exceed 31 percent of the borrower's gross monthly income, among other eligibility requirements. - Sat Oct 4 2008, 20:05

Talk to your lender(s) right away & explain the situation and see if they will negotiate with you. You can also contact HOPE for Homeowners: here is brief info
Hope for Homeowners, a program created by Congress to assist homeowners at risk of loan default and foreclosure that will allow some homeowners to refinance into more affordable FHA-insured mortgages, launched Wednesday.
An estimated 400,000 homeowners could avoid foreclosure through participation in this program, which is voluntary for lenders and is scheduled to run through Sept. 30, 2011.
That program is among an assortment of federal, state and industry efforts intended to stem the tide of foreclosures.
Under Hope for Homeowners, lenders will determine a homeowner's eligibility and consider loan modifications to lower the monthly mortgage cost, and can also consider whether to take a loss on the difference between an existing loan and a new loan set at 90 percent of the home's current appraised value.
Existing mortgages must be originated on or before Jan. 1, 2008, and existing mortgage payments as of March 1, 2008, must exceed 31 percent of the borrower's gross monthly income, among other eligibility requirements. - Sat Oct 4 2008, 20:00

Yes, but like child support income, it doesn't have to count unless you want it to. - Sat Oct 4 2008, 19:57