Category: House and Home

Beware of Reverse Mortgage Scams

With the current recession in full swing and unemployment rising, the quest by unscrupulous predatory lenders to take advantage of seniors is on the rise. One of the areas in which they are particularly insidious is in selling reverse mortgages.

There are a host of reverse mortgage scams that are plaguing our senior citizens, and steps are being taken to stop it. In this article, we will try to highlight the main things you need to watch out for when it comes to reverse mortgages.

According to HUD, deceptive practices and allegations of high-pressure sales tactics are being more frequently encountered as senior citizens are being taken advantage of under the guise of a helpful and legitimate reverse mortgage.

Borrowers also run the risk of being steered into inappropriate loans and annuities by sales agents and insurance brokers who could be working together without disclosing that relationship to the borrower. They are all in it for their percentage, and since greed is what got America into the current credit crisis, it will certainly not get us out. Common sense will.

A reverse mortgage can be of real benefit to people who truly need it, since it frees up equity in your home. Unfortunately, reverse mortgage scams were on the rise even before the current economic crisis hit. A case in point is California:
According to the Oakland Tribune dated Sept. 6, 2006, “Gov. Arnold Schwarzenegger signed a bill into law that adds protections against scam artists offering reverse mortgages.”

The new law requires that before getting a reverse mortgage, people must receive independent advice about the pluses and minuses from a certified counseling agency that does not have any profit motive. This shows you how profitable reverse mortgages can be, so buyer beware.

The law also requires that mortgage documents be translated into the language in which the loan was negotiated, ensuring that a borrower who doesn’t speak English has full access to the complex financial information. This reverse mortgage law also blocks the questionable practice of requiring people to buy annuities they may not need.

For more information on reverse mortgages, visit HUD at: http://www.consumerlaw.org/initiatives/seniors_initiative/tips.shtml.

Our seniors are particularly vulnerable these days to the scams that pervade our society. They have seen their retirement funds asvested in 401ks virtually vanish, and greed run rampant. They have seen higher taxes, and their children lose their homes to foreclosure. They have lost jobs, or are now reluctant or unable to retire.

Given the fact that so many seniors may be in financial trouble now, and are feeling more and more desperate, they become victims of relentless individuals and companies that seek to prey on their immediate financial concerns by offering seeming good advice and a quick fix to their problems.

But remember, buyer beware, and if it sounds too good to be true, it probably is.

If your parents or grandparents are considering a reverse mortgage, make sure you get involved as a back up person. By all means accompany them when they seek advice from a counseling agency so that you can assist them with any and all questions relating to reverse mortgages. Take notes, read the fine print, and get independent advice from a non-profit source.

Look up reverse mortgage scams online. Stay informed, and stay safe. Again, a reverse mortgage might be a great idea for some seniors depending on their situation, but beware of reverse mortgage scams now, to avoid disaster later.

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Reverse Mortgages

Except for seniors who require long-term care, most are fiercely independent.  Many seniors who feel they might be a burden to their family are opting for a reverse mortgage.

 

With seniors living longer than ever before, and baby boomers dealing with their own financial and senior issues, and possibly having to take on the added responsibility of caring for their older parent if they become ill, many older people would rather take out a reverse mortgage than submit their children to this fate.

 

According to statistics, approximately 40% of long-term care is paid for by seniors.  If there are those who cannot afford to do so, the children are forced to pay for these services.  This poses a problem for a senior who wishes to live out his or her life independent of their children.  It also raises issues among the children such as who will care for mom or dad, and other sibling issues.

 

One woman writes, “My parents are 86 and 87 respectively, and both living alone now.  If either one or both became ill and needed financial assistance, it seems to me that a reverse mortgage is a viable alternative in these difficult economic times.  My sister and I agree that we would never put them into a nursing home.  Their independence is crucial to their mindset and way of life.  To deny them that independence would be cruel. At the same time, though, we need to worry about our own families, college, and making ends meet. A reverse mortgage, when done correctly, can make all that possible.”

 

Reverse mortgages alleviate the burden felt by seniors and their children.  Imagine living in a home most of your adult life, and then suddenly becoming ill and discovering that you cannot afford to pay the bills or other expenses associated with home ownership any longer.

 

One of the things some of us fear, and seniors in particular, is change.  Our parents usually have a schedule they live by.  They receive their monthly social security and pension checks and try to stick to their budgets.  They treasure every moment of life in ways only they can appreciate. But any bump in the road financially can threaten all that.

 

They ask for nothing other than being allowed to live out their lives in comfort and financial stability.  However, if they become ill and cannot afford medical expenses or prescription drugs, their world can turn topsy-turvy.

 

A reverse mortgage can free their minds from worry, since it will help them secure day to day living expense. However, it is good to check out the latest options first before pinning your hopes on a reverse mortgage as the solution to your difficult problems. Given the current economic climate, the credit crunch is affecting even this area of the market.

 

However, if your parents or grandparents are struggling to make ends meet, it is an alternative that is well worth investigating.

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Saving energy this winter in your home

Even though oil prices seem to be dropping at the moment, why pay more than you have to? And, you might also want to consider global warming.

 

There are a lot of myths about being energy efficient in the home. Here are a few myths versus facts. The more you learn, the more you can save.

 

So stay warm this winter with these handy hints and tips.

 

Myth

Furnace filters work no matter how long they’re in use.

 

Fact

Replacing or cleaning old filters can reduce dust and save 5% in heating costs.

 

Myth

Keeping drapes and blinds closed keeps in heat.

 

Fact

Opening up drapes and blinds on windows facing the sun lets the sun in, heating your home for free. Southern exposures will catch the sun pretty much all day.

 

Myth

Fireplaces are great sources of warmth in the winter.

 

Fact

Fireplaces pull heated air out of the house, so use it sparingly and be sure the damper is closed when it’s not in use.

 

Myth

Humidifiers add moisture to the air, making it feel cold.

 

Fact

Moister air feels warmer, so by adding a humidifier, you can set your thermostat lower, to help you save money.

 

Myth

Only experts can tell if your outer doors have air leaks.

 

Fact

Place a piece of paper between the door and frame and shut the door. If you can pull the paper out without tearing it, you should weather-strip around the door to keep the heat in and the cold out this winter.

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Good Home Security on a Budget Part 2

Part 2.

Since the video that is picked up by these webcams is being stored on the hard-drive of your computer, which takes up valuable computer space, you can invest in an external back up hard-drive so you can back up your computer, and also have more storage space.

 

But it can be more cost efficient to use this technology instead of buying a surveillance system that relies on video tapes, an added expense, and very cumbersome to use, especially if you want to look at films quickly.  No one wants to watch hours of a dead room when trying to find a missing wallet.

 

To store the video it takes a lot of hard-drive space. To record for a 24 hour period with one camera, it can take up to 1GB of hard drive space per day. This number will also depend on the kind of image quality chosen.  The lower the quality the video feed chosen, the less bandwidth required to save the video within your hard drive.

 

Another good trick to keep the storage issue to a minimum is to set the FPS (frames per second) to a lower level. By doing this you’ll be saving even more space. If for some reason your computer comes equipped with a large hard drive with lots of space, then you have nothing to worry about apart from just wanting to get into the habit to back up your hard drive so if anything ever does happen to it, you are covered.

 

Remember, webcam software combined with a few inexpensive webcams can be used to watch over loved ones or precious items within the home. There is no need to spend tons of money on a surveillance system when one can be made using your own home PC.

 

One of the best features about doing so is that if your PC has internet access, you can also watch the webcam feeds from anywhere just by logging in.  This is great for parents who want to keep an eye on their child and home via a nanny cam, and for anyone who travels a lot.  With features and convenience like this, it’s a wonder that everyone doesn’t have a surveillance system to help watch over their prized items.

 

So set your budget for your home surveillance system, comparison shop on the software and features, and best prices, and soon you will have the comfort and safety of knowing you have a good in-home security system watching over you and your family.

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Good Home Security on a Budget Part 1

 

Many people want their own private surveillance equipment for better home security. Besides the surveillance systems that are run through various VCR or DVR systems, there is computer software that can be used to control the security cameras around your home and property.

 

Most of the large companies and businesses purchase surveillance equipment with the software it uses already installed. Most of these systems are far too expensive for the regular business owner or private home owner to use.

 

So how can you get good value without breaking the bank when it comes to home or small business surveillance?

 

Your personal computer can now be used as a valuable surveillance tool. By connecting a webcam to the computer and installing the correct software, your PC can become a powerful security device.

 

This is a fairly inexpensive method for home security or small business security compared to the systems that some people purchase that require a whole installation crew just to hook up the wiring alone.

 

As a matter of fact, with current technology upgrades, up to 16 different webcams can now be displayed through the same PC, and improvements are being made all the time.

 

This is like having a whole home security system installed at the touch of a button. All you have to do is set up the software and cameras, and check them to see that they are in the right places and giving off the right signal, and then you can monitor everything from your PC.

 

You have a number of different options when setting up your surveillance system.  For example, if you don’t want to record everything that goes on in the room even when someone is not in it, these cameras can be set to detect when there is motion present within the room. Once motion is detected, the camera and software will start recording at that instance.

 

Continued in: Good Home Security on a Budget Part 2

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