Linda Kay's Home Info

Okay, so, we all know how a Regular Mortgage works.  The borrower can be any age, they have to qualify with income and fico scores.  Then after they close, they start making payments.

A Reverse Mortgage is a way for seniors age 62 or older to take a portion of equity out of their home. The proceeds are tax free and they do not have to make payments.  The loans are FHA governed therefore there are many rules to protect the seniors and their homes. 

A colleague of mine has decided that Reverse Mortgages are extremely more expensive than a traditional mortgage.  They really aren't.  If your client is purchasing a new home with a Reverse it's comparable to a Traditional Mortgage. Both have mortgage insurance, but in the case of a reverse, the insurance protects not only the lender but the borrower.  For instance, if your client had gotten into a Reverse three years ago with an equity line, obviously the value isn't the same.  However, because of the mortgage insurance, the line of credit would remain the same, not be lowered to the home value.

The only real difference is in the origination fee which is capped by FHA at $6,000.  Yes, it's a bit more than a regular mortgage, but it provides a service for seniors who may not qualify due to income or fico scores.  And let's face it, some seniors really need help, especially with the government cuts to their income and healthcare. 

Really, if it's the best or the only solution for your client, wouldn't you want that for them?  I would!

Okay, so I just know that if my momma had to be moved into a nursing home, it would literally kill her.  She has been in that same house since 1959 and it's simply her comfort zone.  But, if I had to take care of her myself, I couldn't work and help my family out.  So, the answer, is HOME HEALTH CARE.

Now I know she has "LONG-TERM CARE INSURANCE", but it really isn't going to be that big of a help, because obviously in-home care is extremely expensive.  So I would really be stuck between the proverbial rock and a hard place. If I were independently wealthy, I could just pay for it myself, but unfortunately, like so many other out there, it would break the back of my family's piggy bank.

A heartbreaking story, isn't it and it occurs way too often in this day and age and especially in this economy. But, there is GOOD NEWS; there is HOPE!

My momma owns her house outright and she's over the age of 62.  So literally, in this case, a REVERSE MORTGAGE would literally save her life.  I could put her home into a reverse line of credit and use that money to help offset what costs her insurance wouldn't cover. 

In my travels, I have run into similar stories, even in my short amount of time in this field.  A lady taking care of her sister after a massive stroke, a daughter who can take care of her father at night but must work during the day... and sometimes adult day care is not an option.

This is one reason I went into this field - no not for my momma, but to provide solutions to the vast and growing amount of seniors who truly need some form of financial security and help.

I hope if you run into anyone in your travels who is in need of help, you'll remember that the FHA reverse loan is a great option for those that need it!

OKay, so we all know seniors (age 62 or over) who want or need to sell their current home. Maybe they have a two-story and can no longer handle the stairs, maybe they want to be closer to their kids or grandkids, maybe their house is way too big, maybe they want to be with other active seniors... many, many reasons this could be happening.

But since they happen to be a senior, they are on a fixed income (usually) or have other factors that would not make them a good candidate for a new home loan, plus they are just not sure about the new payments.

I have GOOD NEWS for both the seniors and their realtors! The "Reverse for Purchase" can come into play!  Here's how it works...

Step One: Mr. and Mrs. Stiles meet with their Realtor and place their home on the market. Step Two: Mr. and Mrs. Stiles start looking for a new home to purchase that will fit their needs.  Step Three: The Realtor introduces Mr. and Mrs. Stiles to a Reverse Mortgage Consultant who explains the process to them.  Step Four: Their home sells for $300,000!

Here's how it looks on paper:

New Purchase Price                    $400,000

Reverse Amount                       $230,000

Cash Needed to Close               $170,000

The cash can come from the proceeds of the sale of their previous home or other sources and the rest can go into their own pocket.  And because of the Reverse Mortgage on the new home, they will never have a payment* until they can no longer live in the home or they pass away.

Great, FANTASTIC deal... and everybody's happy!

So, if you know of anyone who fits this criteria, please don't hesitate to call me for further information!

*House must be kept up to FHA standards and all taxes and insurance must be kept up to date.

Okay, so most of you know how I am a give-back type of person.  I volunteer for the Red Cross and do many other "give-back" -minded things.  I learned it from my mom who volunteers at her church, the local hospital and runs a monthly group for widows.  She's NEVER home! But I digress...

I recently was asked to take a position at a major bank doing Reverse Mortgages for Seniors.  Now, some of you know that my favorite Real Estate transaction was for a senior couple who simply could not stay in their two-story home any longer.  She had broken a bone in her tail and he was due to have back surgery in about three months.  I not only sold their home but found them a fabulous home to purchase and closed the deal about ten days before his back surgery.  When all was said and done, she actually ended up in a wheel chair - so sad - but the home we ended up with had wheelchair access throughout the entire home!  YEA!  I helped someone who needed it in a desparate way!

So I asked a lot of questions about Reverse Mortgages.  I had a bad first impression of them when I was first introduced a number of years ago.  But now, with newly imposed guidelines, I find that they can be of a great help to those who need it.  And with the increase in Medicare premiums and the increase in co-pays, not to mention the freeze on Social Security Raises, I truly believe that some seniors will definitely need the bit of help a Reverse Mortgage can give.

I actually think my own mom will benefit from a Reverse Mortgage!  After all, it only helps her and she doesn't have to worry about paying it back - I do!

Okay, let me clarify something first of all:  When you are from Southern California and you say "THE RIVER" it means the Colorado River.

So every year, my husband's entire family sisters and their families, mother and father and this year - my mother as well go to THE RIVER.  We will be leaving tomorrow, Sunday - and so I thought I'd take a second to let you all know a few of the many, many things for which I personally am thankful.

1.  First and foremost and always, I am thankful for a God who loves me so much that HE sent and watched His only son die for me and my sins.  Can you imagine anyone watching their child die for someone else.... and if there was any other way, do you think He would have just stood by and watched?  NOPE!

2.  My family ROCKS!  I have five - yep five - kids who are all wonderful and loving and all have fabulous senses of humor which really helps when putting up with their looney mother! And a husband who is second to none - don't ever grow up Hon!

3.  I have a marvelous job which I consider a help to many people.  I'm excited to go to work and help people achieve the American Dream for which they work long and hard.  And I have had the opportunity to help many seniors who needed things like moving from a two-story to a one-story home in a short amount of time.  Of course - that credit goes to a God who hears prayers and helped us get into the house one week before the husband's back surgery!!!!!

4.  And Last but not least, I am really thankful for Active Rain and the many people here who have helped me learn, grow and laugh.  I've still got a long way to go, but you guys are awesome - so thanks!

Of course, there are many other things and stories, but I felt I wanted to say these.

And to ALL of you, HAPPY THANKSGIVING!

NOW is the perfect time to sell your home.  I mean, really, think about it.  the holidays, while busy, are decorative and festive - what better time!

During the holidays, your home is at it's best, all decked out with decorations and usually cleaner than at any other time during the year.  It's the perfect SHOWCASE for selling your home.



Now, you may talk about how busy you are during this time.  But honestly, how many of those events are actually in your own home?  The answer is probably one or two at most.

So, if you want top dollar, what better time of year could there be to showcase your particular home?  I say, go for it!

Okay, so one of our local Dj's, Pete Demetriou, formerly on KFWB news radio met me at one of our local Red Cross Shelters.  In the course of our discussion, he let me know that he had a great plan for any sort of evacuation he and his wife would have to do in the future.  It's actually kind of brilliant, especially the part about how to have cash on hand.

When I see most people on the news talking about their evacuation, they always say the same thing:  They got family, animals and pictures.  Most of us have never been in a catostrauphic event where our state's infrastructure has been compromised.  We have never had to go without an ATM for cash, and we simply don't think of these things.

I think with all of the crazy things happening around the world, the floods, fires and earthquakes, now more than ever we need to be ready to take care of ourselves.  So, without further ado:  The Plan.

DOCUMENTS TO HAVE ON HAND IN THE EVENT OF AN EVACUATION, BY PETE DEMETRIOU

REPRINTED WITH PERMISSION

Make three copies of the documents - ALL copies should be in color.
One in the Home in a secure location.
One in a local Bank Safety Deposit Box.
One in an out of State Bank Safety Deposit Box.
       
In the Home Copy, include a packet of cash for travel or other needs. For 2 people…it should be roughly $500 dollars (10, $20’s, 10, $10’s, 20 $5’s and 100, $1.00’s. NO $50’s or $100’s) to last for 48 to 96 Hours. The reasoning here is that the stores will be full of people and if you have an exact payment, you will be helped before those that need change.

Copy of Birth Certificate
Copy of Social Security Card
Copy of Driver’s license
Copy of US Passport

Financial Information (including institution, account numbers, passwords, etc):
Checking Accounts, Savings Accounts

Money Market Accounts, Retirement Funds, Stocks, Bonds. (Annual Reports from Stock Brokers are also fine.)
Photocopy of Credit Cards.

On attached sheet, include (from each card)
CCV number from back of card, account number, expiration date, name as listed on account, Card Company’s toll free number

Safety Deposit Box information, copy of key

Copy of recent tax documents (includes paper and or CD copy of State and Federal for past 2 years)
Copy of Property Tax Bill, Title Documents for Home.

Copy of Auto Title (Pink Slip or Bank Lien)

Documents related to Wills, Trusts, Durable Power of Attorney, Medical Directives

Copies of insurance policies (life, health, home, car) including the contact information (phones and or websites) of the Carriers.

A short (10 numbers at most) list of emergency Phone numbers of Relatives or Critical Personnel

I hope everyone who reads this will have some sort of plan - especially an out-of-state plan - just in case we should ever have a huge, catostrauphic event.

SORRY NO PICTURES

”The southern stretch of the San Andreas fault has had a major temblor about every 137 years, according to new research. The latest looks to be overdue.”  LA TIMES

The news today is full of fires, floods, and earthquakes.  It seems that everywhere you look signs are pointing to the average citizen being prepared and ready to take care of themselves in the event of a large disaster.  With that being said, I will give you some information today about earthquake safety.

Most of you will be aware of the swarm of earthquakes hitting the Pacific Region.  Below is a map from Cal Tech for the last week indicating the enormous amount of seismic activity in our area.

The swarm of earthquakes MAY indicate a larger BIG ONE to come. I, for one, want to be ready to take care of my family, and if possible some of the neighbors who won't be.  For that to happen, I must be "RED CROSS READY"!  Here is the link to the Red Cross Preparedness sheet on earthquakes. 


I suggest you read it and plan ahead... I know my family will be!

For earthquake information from Cal Tech, please click on this link. 

 Okay, so of course this picture was taken by Roxanne.. she gets the BEST pictures!  If you need a photographer for anything, let me know!

 Okay, so let's get down to it.  My husband is an air traffic controller in the area.  They got some really great pictures during these fires as the helicopters were actually coming through their airport.  And, of course, I had to add a picture of him in the tower!  TLW, that's a good wife's duty! 

So by now you all know that I volunteer for the Red Cross (http://www.sgpvarc.org).  I have spent the last six days and nights working in the La Canada, CA shelter for the Station Fire as it has been dubbed.  This website actually has amazing picture galleries along with the most current news story: http://www.pasadenastarnews.comci_13242704

The American Red Cross is made up of many small chapters which cover specific territories. For instance, my chapter, which is one of the largest in the country, serves 1.8 million people in 44 communities from La Canada Flintridge to Pomona and Duarte to Rowland Heights, covering 320 square miles.

When the fire started it began in our chapter area and I am the lead disaster Public Information Officer.  It is my responsibility to get good, correct information out to the media and make sure that the media gets their story while still protecting the privacy of our shelter clients. and for the first couple of days it remained that way.  However, when the fire jumped in size from 5,500 acres one morning to 24,000 by night time, it also jumped to three chapters in one day.

FINALLY, on the sixth day, when we were all dead on our feet, the National Red Cross decided to step in and make it a national emergency.  What that means to you guys is that now they will be sending help from all over the country to help out with the shelters, the feeding, the public information, and the list goes on and on and on!  For all you folks who get hurricanes, it's like receiving all the help you get during those times.

 For anyone wishing to follow the fire incidents around the country, the website is http://inciweb.org.