SANPETE HOME OWNER SAVVY

WHY NOT STAGE YOUR HOME EVERYDAY? (Don't hurt me, it's just a thought...)

My favorite TV station is HGTV (surprised?) and second favorite is any station that hosts "This Old House".   I really respect the opinion of Sandra Rinomato (see below).  She has strong common sense and good ethics.  Below is an article featuring her advice, from Rismedia.

10 Staging Tips to Help Your Home Sell

^[1]RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.

“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.

But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”

Rinomato offered the following tips for staging a home:

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

(c) 2010, The Orlando Sentinel (Fla.).

Posted By susanne On March 18, 2010 @ 3:50 pm In Homeowner's Toolkit, How to Sell Your Home, Real Estate, Today's Marketplace, Today's Top Story, Today's Top Story - Consumer |

Distributed by McClatchy-Tribune Information Services.

Almost 40% of our population are BABY BOOMERS! (55+)

Economy Forces Changes in Thinking about Retirement Homes

^[1]RISMEDIA, January 30, 2010—(MCT)—If your idea of a dream retirement home is a luxury contemporary overlooking a championship golf course in the desert, you better be prepared for some mighty small block parties: When it comes to retirement living, golf courses are out.

And Arizona and Florida aren’t the only retirement-relocation hot spots these days. In fact, North and South Carolina now top the preferences of baby boomers who will be retiring in the next decade, according to a survey to be released from home builder Del Webb. “How times have changed when it comes to the golf course,” said Paul Cardis, chief executive of AVID Ratings Co., a survey research firm. His recommendation to builders: Eliminate it. Bike paths and walking trails are the new greens and fairways.

Blame it all on the economy. The recession has taken its toll not only on nest eggs but also on the traditional concept of a retirement home. That’s the message that attendees at the International Builders Show received in a number of presentations and seminars.

Downsizing is a trend that is taking hold among all housing consumers, but it is particularly evident among the 55-plus crowd that includes the older baby boomers. And that downsizing includes housing aspirations in retirement. While “warmer climate” was the reigning factor in choosing where to retire in the first boomer survey Del Webb conducted in 1996, today “cost of living” is the most important consideration on where to locate. Although Florida, Arizona and California remain Top 10 retirement destinations, the trend is giving other states a chance to draw even more retirees.

Despite the broadening of potential destinations, baby boomers’ desire to move in retirement has remained relatively stable over the years. Between 30-40% plan to move to a new home in retirement, about the same as in 1996, and half of those plan on moving to a new state.

What older buyers want in homes
What kind of houses will be in demand among those 55 and older? According to a consumer survey conducted by the National Association of Home Builders, the most important design features that 55-plus buyers want in their homes center on the practical:

-Washers and dryers in their units
-Storage space
-Windows that open easily
-Garage-door openers
-Easy-to-use thermostats
-First-floor master bedrooms
-Private patios
-Porches
-Attached garages
-Bigger bathrooms

A lot of the more popular features in new homes these days don’t appeal all that much to older buyers:
-Island work areas
-Separate showers
-Private toilet compartments
-Sun rooms
-Woodburning fireplaces
-Exercise rooms

But a number of items that home buyers don’t find to be of much interest are much more popular with older buyers:
-Bathroom aids such as grab bars
-Kitchen aids
-Light home-repair services
-Outdoor maintenance services
-An entrance without steps
-Accessible public transportation
-Wider doorways
-Nonslip flooring

Among technology features, older home buyers tend to act like younger buyers when it comes to the basics: Both groups have a preference for security systems, energy management, structured wiring and lighting controls. But older buyers had little use for home theaters, distributed audio or home automation, more-expensive items that younger buyers do like. “These older buyers are frugal, probably on a fixed income and so expensive tech items are not that big on their lists,” said Rose Quint, the NAHB assistant vice president for survey research.

The emphasis on services related to home and community is an important one that cuts across many age groups, said John Migliaccio, director of research at MetLife’s Mature Market Institute, which surveys consumers and builders on retirement issues. “Very telling is that the younger group of mature consumers reported enthusiastically that they want services like home maintenance and repair as part of their next home purchase, along with services usually connected to older householders, such as housekeeping, onsite health care and transportation,” he said.

According to Migliaccio, all of those items were ranked higher than the desire for social activities by this group—a surprise given that social activities and amenities have been thought to be valued highly by this group. He said the data support an emerging trend among builders to look for ways to partner with providers of such services to the residents of their active adult/lifestyle communities.

Migliaccio also predicted that universal design—which includes features such as wider hallways, lever-handled doors, roll-in showers and no-stair entries—will catch on as baby boomers watch their own parents age. “The boomers are going to see their own parents age without it and they won’t like what they see,” he said.

The 55-plus age group represents 38% of all U.S. households and is projected to rise every year to be almost 45% of households by 2019. And that group has high homeownership rates: while the U.S. as a whole has about a 67% ownership rate, those 55 to 74 own homes at an 80% clip. “Most buyers in this market are looking for an easy-living lifestyle. They would like easy access to services that will free up their time from maintenance both inside and outside their homes,” said Mike McGowan, a 50-plus builder from Binghamton, N.Y. and chairman of the National Association of Home Builder’s 50-Plus Housing Council. “This data tells builders that the homes they build for older active adults will remain attractive to the consumers who will be entering that market for the foreseeable future.”

(c) 2010, MarketWatch.com Inc.

REVERSE MORTGAGE? TOP 9 MYTHS

- RISMedia - http://rismedia.com -

Top 9 Reverse Mortgage Myths – Separating Fact from Fiction

^[1]RISMEDIA, January 20, 2010—Recent headlines pointing to the detriments of reverse mortgages aren’t getting the story straight. One of the nation’s leading reverse mortgage lenders, Generation Mortgage Company, wants to separate fact from fiction.

“Because so many Americans over the age of 62 are facing significant financial stress due to dropping retirement and savings account balances, as well as higher healthcare costs, many groups are targeting seniors under the guise of helping them,” said Scott Peters, CEO and President of Generation Mortgage. “HECM reverse mortgages are Federal Housing Administration-insured products and are heavily scrutinized by regulators and legislators looking to protect seniors’ best interests. As a result, more than 600,000 American seniors have obtained reverse mortgages that have enriched their lives by allowing them to stay in their homes and pay off their bills.”

The top 9 most common reverse mortgage myths include:

Myth: If I take out a reverse mortgage the lender will own my home.
Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth: My children will be responsible for the repayment of the loan.
Fact: False. Reverse mortgages are non-recourse loans. That means, if the property is sold to pay-off the loan when the homeowner passes away or decides to leave the home for other reasons, there will be no mortgage debt for the family and heirs to repay. The maximum amount owed is the current market value of the house. If the homeowner’s heirs want to keep the home, they would pay the balance in-full to the reverse mortgage lender.

Myth: I can’t get a reverse mortgage if I have an existing mortgage.
Fact: False. With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Myth: Only low-income seniors get reverse mortgages.
Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth: If I outlive my life expectancy, the lender will evict me.
Fact: False. Reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Myth: There are no objective advisors available to seniors trying to decide if a reverse mortgage suits their needs.
Fact: False. Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

Myth: There are restrictions on how reverse mortgage proceeds may be used.
Fact: False. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

Myth: Reverse mortgage lenders take advantage of seniors.
Fact: False. Seniors who have been victims of reverse mortgage lending schemes are extreme exceptions and typically victims of unsavory lenders. As a consumer, you should only work with lenders who are Better Business Bureau and National Reverse Mortgage Lenders Association (NRMLA) members and adhere to those organizations’ strict Code of Ethics and Standards for Trust.

Myth: I’ve heard I won’t qualify for a reverse mortgage because of my limited income.
Fact: Unlike a traditional mortgage where mortgage payments must be made each month, a reverse mortgage pays you. Because of this, many seniors who do not qualify for traditional financing are eligible for a reverse mortgage.

For more information, visit www.generationmortgage.com ^[2].

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com ^[3].

For more top headlines on RISMedia.com, be sure to see:
10 Tips to Prepare for a Market Rebound ^[4]
Prudent Moves – How 3 Leading Prudential Brokers Are Paving the Road for 2010 ^[5]

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[4] 10 Tips to Prepare for a Market Rebound: http://rismedia.com/2009-12-02/10-tips-to-prepare-for-a-market-rebound/

[5] Prudent Moves – How 3 Leading Prudential Brokers Are Paving the Road for 2010: http://rismedia.com/2009-12-01/prudent-moves-how-3-leading-prudential-brokers-are-paving-the-road-for-2010/

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CAN'T AFFORD REPAIRS ON THE HOME YOU WANT TO BUY???

Here's a great article about an FHA program that seems to be a well-kept secret!  NOT ANY MORE!!  (Obviously the article is sponsored by Lowes - check in to their discount program-email me)

^[1]RISMEDIA, December 31, 2009—Driving to work one morning earlier this summer, home buyer Lori Kramer was thinking about the homes she and her husband had looked at the day before. Then, she had a thought that would eventually change the direction of her home search completely. “My home at the time was listed for less than what we were approved for and it needed some work. So I wondered if we could use that remaining money to upgrade a home we were considering and make it our own,” says Kramer of Jacksonville, Florida.

From there, Kramer called her Wells Fargo mortgage consultant, Diana Diallo, who told her about the 203k program. The FHA Section 203k program is specifically designed to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.

“As the market turned and we began to see more and more distressed properties, Wells Fargo, as a company, has focused its efforts on developing a more streamlined version of the typical 203k loan,” explains Diallo.

After Kramer received preapproval from Wells Fargo, she consulted with her Realtor, Shawn Norton of Keller Williams Realty, about revisiting a home she and her husband had considered earlier; it needed a lot of work, but Kramer saw the home’s possibilities and later bought it. From there, Diallo worked with Kramer on choosing a home improvement vendor. She selected Lowe’s, a decision Kramer calls “one of the best decisions we made.”

“After comparing service and cost, Lowe’s out-delivered the other vendors,” explains Diallo. “Thus, Lori chose Lowe’s to complete her remodel repairs.” And the renovations were quite extensive.

With their 203k approval, the Kramers completely renovated the kitchen, replacing all cabinets and countertops. They also revamped two bathrooms and added new carpet and fencing to the home.

“Lowe’s was fantastic and they truly deserve some spotlight for their service,” lauds Kramer. “The Lowe’s team and their contractors helped with design, offered us some great tips and helped us with materials and product selection; they did all of this and offered us the selection we wanted for an affordable price—and within 45 days from closing.” The Kramers closed on their home on August 18 and the work was completed by October 1.

“We are extremely happy,” says Kramer. “This program changed the way we looked at buying a home. Thanks to Lowe’s, our home has turned out amazing. The before and after is unreal. My kitchen is particularly amazing.

“In this market, where so many homes have been vacant for so long or gutted in some cases, this program could really change the way people are buying real estate,” adds Kramer. “I would definitely do this again—and would work with Lowe’s to do it.”

Norton agrees.

“I learned so much from working on this with Lori and Diana,” says Norton. “This really opened all of our eyes to see that you can fix something if the structure’s good and you have the right people in place to do the work.”

In many cases, homes that would qualify for the 203k loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer. “I never would have bought this home without the program—and I could not be happier,” says Kramer.

“Lowe’s was just awesome,” she adds. “From the program manager and other managers to the contractors, everyone was just outstanding. Our cabinet installer was the best—he was on point and professional. All of our contractors were so good with us. Lowe’s was great to work with, and I would love for other people to experience working with them as well.”

For more information on the 203k loan program, visit www.hud.gov or www.re-buildusa.com ^[2].

Lowe’s contractors and installers are licensed where required. For more information, please visit www.lowes.com ^[3].

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com ^[4].

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UNDECK THE HALLS ("What a great article!" E. Scrooge)

Tips for Packing Away the Holiday Decorations

^[1]RISMEDIA, December 31, 2009—(MCT)-Much like returning from a vacation, putting away the holiday decor just isn’t as fun as getting it all out. The following pointers from a trio of organizational experts can keep the seasonal clutter safely out of your way—and even make next November easier.

Pare down. “Don’t be afraid to get rid of the stuff you don’t like,” says Darcy Munzer, owner of Organize4U in Independence, Mo. “If you don’t love it, get rid of it.” If it’s broken, it doesn’t work or you haven’t used it, toss it, but donate what’s in good condition.

Consider the sentimental value. The half-melted choirboy candles have always been on the mantel at Christmas, says Mary Ellen Vincent, owner of OrganizeMe in Kansas City, “because they remind me every year of my mom.” For some items, though, you may be able to snap a picture to preserve the memory, Vincent says.

Take inventory. How many wreaths do you own? Strings of lights? Before you can organize and store, you need to be aware of how much of everything you have, says Noelle Micek, a San Francisco-based expert in residential organization and design.

Keep track. Munzer writes everything down, including special Christmas recipes and the gifts she buys throughout the year, in a notebook that she keeps in her home office.

Choose your storage space, and measure it. Most people will store holiday decor in the basement, attic, garage, storage shed or even under the bed. Just make sure it’s out of the way; you don’t want to fight those bargain rolls of wrapping paper for the next 11 months. “Let the space you have limit what you own and keep,” Vincent advises. Know the dimensions of your storage space, Micek recommends, so any containers you buy will fit.

Keep it together. Store all the Christmas items—ornaments, cookie cutters and everything in between—in one spot, if possible. The exception: Keep certain heirloom items, linens and high-risk breakables in a temperature-controlled environment in the main part of the house.

Up and away. Holiday dishes can go in that hard-to-reach cabinet above the fridge.

Color code your containers. Use see-through plastic containers with the same color lids for each holiday, Micek suggests.

Label. Never put a box away without a label. Write on the sides with a black marker, or list the contents on a 3-by-5-inch card or color-coded construction paper. “You don’t want to look through 50 plain white boxes to find the four with ornaments,” Munzer says.

Number your boxes. Number them in the order they should be opened. “You want the tree stand and skirt before you get the lights and ornaments,” Micek says.

Choose the right containers. Buy the best quality containers you can afford. You’ll protect against water damage, accidental breakage and even pests such as mice. Shop around to find what fits your needs. Cardboard can be recycled, but plastic offers a better defense against moisture and pests.

(c) 2009, The Kansas City Star.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com ^[2].

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INVESTING IN STUDENT HOUSING??

OK - THIS IS MY BLOG, SO I GET TO EXPRESS MY OPINION!

In a schol year like this one (2008-2010) when enrollment is up 30%, having sdtudent housing as an invetment can be terrific!  Students were actually bidding against each other for apartment space at the beginning of the year. Increasing enrollments in colleges and universities (and all institutitons of higher education) traditionally DO go up when the economy struggles. 

There are so many variables to consider when being a landlord, and here are a few:

Be sure your mortgage payments are not higher than your collected rents.  (Wasn't THAT astute!)  No one wants to be operating in the RED! To keep your apartments full  you have to have either the best location or the best, student-friendly rents.  It helps to have a property that isn't the city slum, too!  Consider that stduents are not usually in town over the summer.

In my HUMBLE opinion, the best investment in town is for married student housing.  While there is enough single-student housing, married students often have to rent as far away as Nephi. 

There are single student/married student housing units for sale in town.  If you'd like to know more, give me call at 851-2988.  I'm happy to spend some time with you to let you know what's here, and to help you decide if it's a good investment for you.

COLLEGE TOWNS CAN HAVE GOOD INVESTMENTS!

This article is reprinted from RISMEDIA - a news source I trust, and which often has insightful information.

Home Buying 101: College Towns are Undiscovered, Affordable and Stable Markets for Homebuyers

RISMEDIA, November 16, 2009—Every fall, college football fans feel nostalgic for the tradition, lifestyle and spirit of their college towns as they cheer on their favorite teams. This year’s Coldwell Banker® College Home Price Comparison Index (HPCI) reveals that these school-centric areas also sport very affordable homes, in addition to the culture and economic stability associated with higher education institutions – making them great areas to purchase real estate.

The annual College HPCI released by Coldwell Banker Real Estate LLC provides an apples-to-apples comparison of similarly sized 2,200 square foot, four-bedroom, two-and-a-half bathroom homes in college markets home to the 120 Football Bowl Subdivision schools. This year, Akron, Ohio (University of Akron) is ranked as the most affordable college town, where a typical four-bedroom home costs $121,885. Muncie, Ind. (Ball State University) took the No. 2 spot at $144,996. Ann Arbor, Mich. (a quintessential college town home to the University of Michigan) came in as the No. 3 most affordable college market, where the sample size home only costs $148,000.

Overall, the 2009 College HPCI revealed that real estate buyers can find a typical four-bedroom home for less than $250,000 in 62% of the college markets surveyed (72 total), including iconic American college towns such as:

-Syracuse, N.Y (Syracuse University): $171,711

-South Bend, Ind. (University of Notre Dame) $183,938

-Athens, Ga. (University of Georgia): $205,862

-Oxford, Miss. (University of Mississippi): $212,000

-Knoxville, Tenn. (University of Tennessee): $223,850

Further research indicates that the charm and affordability of college towns is appealing to more than just students. According to the U.S. Census Bureau’s 2008 American Community Survey; Austin, Texas (University of Texas), Provo, Utah (Brigham Young University), and Raleigh, N.C. (North Carolina State University) were among the metropolitan cities with the greatest population growth in 2008. In all three rising cities, home buyers can find a four-bedroom home for very a reasonable price; only $226,642 in Austin; $231,000 in Provo; and $241,462 in Raleigh.

"College markets have long-been one of the real estate industry best-kept secrets," said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. "Real estate professionals have been investing in college towns for years, often purchasing homes for their children who are attending school. However, these vibrant cities are not only for students; many empty nesters and families are attracted to the health care systems, culture and overall quality of life that college towns offer."

While real estate in college markets may be an undiscovered gem, pride for teams and alma maters are definitely not under-wraps, regardless of how pricey the school or city. For an added perspective, Coldwell Banker asked fans to share "what’s best" about living in their college towns for its new Coldwell Banker On Location video: http://www.youtube.com/watch?v=E0S7eKOih7k.

More expensive college towns are also worth the investment for many people. For example, students have been competing for years to get accepted into prestigious schools like Stanford University, despite its high tuition and cost of living. Located in the most expensive college market in the nation (Palo Alto, Calif.), an average 2,200 square foot home costs a whopping $1.49 million.

2009 Coldwell Banker College HPCI – Highlights & Interesting Real Estate Related Facts:

This year, there is a $1,367,841 price difference between the sample size four-bedroom home in the most affordable college town (Akron, Ohio) and most expensive college market (Palo Alto, Calif.).

STAGING A HOME CAN PAY FOR ITSELF MANY TIMES OVER!!!

If I only had a dollar for every time I tried to get clients to spruce things up... Of course a home is to live in, even while selling, but you're moving away, RIGHT? 

This link to "This Old House" has some of the best ideas ever for staging your home.  In fact, I'm NOT  thinking of selling, but I like these ideas, period.  You'll note that many of them DID NOT REPAINT OR REDECORATE, just made minor changes!

http://www.thisoldhouse.com/toh/photos/0,,20209521,00.html

FALL CHECKUP FOR YOUR HOME

This good bit of advice comes from Home Warranty of America's monthly newsletter!With the fall and winter months upon us, now is the time to do some routine maintenance around your home to prepare for the changing weather ahead. Taking the time to do some work now may save on some major expenses later. Some of these tasks can be performed by you, and some may need to be done by a professional.

Outside your home

   1. Clear debris out of window wells, gutters, downspouts, and storm drains.
   2. Remove garden hoses from spouts. Drain and store for the winter. Wrap spouts in insulation.
   3. Drain in-ground sprinkler systems.
   4. Check windows, doors, and siding for holes and cracks. Caulk as necessary.
   5. Check weather stripping on windows and doors for fit and condition. Replace as necessary.
   6. Inspect all soffit vents and other venting systems to make sure they're clear of debris.
   7. Check painted surfaces for paint failure, water damage, or mildew. Repair or repaint if needed.
   8. Check caulking where two different materials meet, where wood siding joins the foundation wall, at inside corners, and where the window and door trim meets the siding.
   9. Check for broken or cracked glass and damaged screens or storm windows. Check for loose putty around glass panes. Repair glass if necessary.
  10. Insulate outdoor faucets, pipes in unheated garages, and pipes in crawl spaces with materials such as rags or newspapers.

Read more
Inside your Home:

   1. Have a heating professional check your heating system every year. Replace your furnace filter.
   2. Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
   3. Make sure you have proper insulation in both your attic and basement. While checking your insulation, if you see any dark, dirty spots, it may indicate you have air leaks coming into your home.
   4. Remove hair from drains in sinks, tubs, and showers.
   5. Test all smoke alarms. Replace batteries as necessary.
   6. Check your home around windows and doors for air leaks. An easy way to check for leaks is to move a lighter around the window or door frame and see if the flame moves with a breeze. If you find a leak, you can caulk it or you may have to replace the wood frame. Repairing these leaks can save you money on your energy bill during the cold months.
   7. Check for water leaks on the ceiling. Repair if needed.
   8. Make sure there are working nightlights at the top and bottom of all stairs.
   9. Protect your home from frozen pipes. How to do this.
  10. Test your emergency generator.

REVERSE MORTGAGE? MAYBE, MAYBE NOT

Seniors and Their Home Equity Threatened as Subprime Lenders, Abuses Appear in Reverse Mortgage Market

RISMEDIA, October 8, 2009—Abuses and abusers from the subprime mortgage market have begun showing up in the reverse mortgage market, putting at risk the equity and savings of millions of seniors.

That’s the main finding of “Subprime Revisited: How the Rise of the Reverse Mortgage Lending Industry Puts Older Homeowners at Risk,” a report issued recently by the National Consumer Law Center.

“In the reverse mortgage market, seniors face some of the same aggressive lending practices that were common in the subprime lending boom,” said Tara Twomey, an NCLC attorney and author of the report. “Well-funded marketing campaigns and perverse incentives to brokers are targeting seniors’ home equity and using reverse mortgages as their tools.”

As the new NCLC report notes: “Many of the same players that fueled the subprime mortgage boom—ultimately with disastrous consequences—have turned their attention to the reverse market. Lenders, including some of the nation’s largest banks, view that market as a source of profits that have dried up elsewhere. Mortgage brokers see it as a new source of rich fees. Predators who once reaped profits from exotic loans have now focused on wresting more wealth from vulnerable seniors. And securitization, which allowed subprime loan originators to disassociate themselves from the downside risks of abusive lending, is becoming commonplace in the reverse mortgage industry.”

U.S. Senator Claire McCaskill said this report validates the need for regulatory improvements in this industry in order to protect America’s seniors as well as our tax dollars. “We’ve seen this movie before and it didn’t have a pretty ending. Abuses in the subprime lending market almost brought down our economy. Now we’re seeing similar abuses with reverse mortgage lending–something needs to be done before more lifesavings are depleted and more tax dollars are drained,” McCaskill said.

This report describes the growth of an aggressive and dangerous reverse mortgage sales culture that has outstripped the limited resources and uncertain funding for the counseling agencies that current laws rely on to prevent reverse mortgage abuses.

“We urgently need stronger protections for reverse mortgage borrowers, especially a suitability standard that obligates those who arrange and profit from reverse mortgage deals to seek to avoid harming the financial interests of elderly clients,” Twomey said.

The report also calls for the extension of reverse mortgage protections to all equity conversion products aimed at seniors, a prohibition on yield spread premiums and other perverse incentives in the reverse mortgage market and better data collection by lenders.

“Reverse mortgages are complicated and expensive financial products that must be used wisely and regulated carefully, or profit and volume driven sales efforts can open the door to abuses and fraud,” said Odette Williamson, an NCLC attorney.

The report also highlights the danger of predators who use reverse mortgages as tools in schemes to steal the home equity of unsuspecting seniors, or to fund the purchase of expensive insurance and financial products that pay high commissions.

For more information, visit http://www.consumerlaw.org.

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