Gov. Arnold Schwarzenegger signed a bill that helps protect seniors from unscrupulous lenders when they enter into reverse mortgages.
"It is our responsibility to help protect those who are most vulnerable in our society," said Gov. Schwarzenegger. "Getting a reverse mortgage can be very helpful, but it is a huge decision. We want to make sure people have all the information they need before making any financial commitment and we want to make sure everyone is getting the right deal, a fair deal and an honest deal."
Specifically, this bill prohibits a reverse mortgage lender from accepting a reverse mortgage application or assessing any fees until the potential borrower has received independent counseling regarding the loan. In addition, it prohibits a lender from requiring a borrower to purchase an annuity as a part of the reverse mortgage transaction and requires a reverse mortgage contract to be translated into Spanish, Chinese, Tagalog, Vietnamese or Korean if the contract was primarily negotiated in one of those languages.
A Reverse Mortgage applicant is already required to go through counseling through a HUD sponsored counselor. This has been a requirement since the government took over the program almost 15 years ago. But has time has gone on, safety measures must evolve and be update and it is good to see that Gov. Schwarzenegger see this and is acting accordingly.
A reverse mortgage generally allows homeowners 62 and above to receive either monthly payments or one lump sum from the property’s equity without having to sell the property or make monthly repayments. Reverse mortgage loans typically require no repayment for as long as residents do not move, but they must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home or permanently moves away. Reverse mortgage borrowers continue to own their homes. They remain responsible for property taxes, insurance, and repairs.
Troy Shellhammer is associated with a nationwide Reverse Mortgage Lender. Reverse Mortgage Nation will provide you access to education material, loan officers nationwide, reverse mortgage information, online calculator, and other consumer benefits.
Las Vegas Bubble?
Ever famous for its Tourist appeal, LAS VEGAS is a 'booming' real estate development 'hot spot', both residentially and commercially. Las Vegas, Nevada is one of the fastest growing cities in the world. As a result, the real estate and home market is nothing short of extraordinary.
Las Vegas, home to 1,825,000 people, welcomed 38,772,166 visitors in 2005, was ranked number one in the U.S. in real estate appreciation with a 36% average appreciation rate and a five-year average appreciation greater than 84%. As far as strength and growth, Nevada continues to outpace every other state in the nation in job creation, with nearly 76,000 jobs added over the past year, a 6.8% job growth, highest in the country. Due to the state attractive business climate, economic stability and strong consumer confidence, experts predict that the percentage of job growth will continue. Compared to most highly desirable areas in the country you can purchase a home in a wonderful area for a reasonable price. Las Vegas is a great place to call home. With over 325 days of sunshine a year and low humidity you will enjoy entertaining outdoors and the lifestyle Las Vegas has to offer.
For years, Las Vegas has been the fastest growing city in history of the U.S, keeping real estate demand constant. The Nevada State Demographer's Office released its projections for the period through 2026. Clark County can expect another 1.5 million people, according to the latest numbers. Overall, Nevada is projected to grow by more than 1.8 million or 74 percent during the same period.
With approximately 42,000 acres of BLM land available in Las Vegas (and 6,000 acres a year being developed); Las Vegas only has 7 to 8 years left of developing land. We're already starting to see a change in new housing with the typical lot size for new homes at 4,000 sq. ft. However, keep in mind that land has begun to be scarcer, thus, the reason you see more two story newer homes built closely together. Great for 1st time home buyers who are looking for a 'tax advantage' along with pride in ownership.
For the future real estate market, I'm still very bullish about Las Vegas. If you're looking to buy in Las Vegas and plan on being here for 3-5 years, I would say that it is a very good time for you to get into the market. I believe the 5-7 year outlook, the timing it will take to build on all currently available land; we'll see a return to a more normal 5-15% annual appreciation
For more information on the booming Las Vegas real estate market visit me at: http://www.elitevegasrealestate.com
Investing in a house that will have good resale value
Well, you are buying a house, congratulations! But before making the purchase, read these helpful tips first.
Home and shelter is the number one priority for everyone. Everyone must have a roof over their head whether to rent or to own. When you own a house, the house is not only served as a shelter, it is also served as a vehicle for you to build wealth or equity. Having said that, you should pay attention to the following tips to making sure that the house that you are going to buy will have a good resale value.
How to choose a house that has good resale value?
LOCATION
The most important thing in real estate is location. It is the most important element in real estate because land is heterogeneous and it is permanently fixed in one place. You cannot move your house to another location if it is in a bad location. Since location is an element that is beyond your reach for change, it is the most important element to consider. The rule of thumb for determining a good location is to choose a location that is integrating and flourishing, such as an area that is moving in the forward direction. Look for location that is situated in an area that has structured economic development, transportation, infrastructure, and local government. One of the examples would be a house in a suburban area that is moving toward becoming a major city with a lot of economic activities going on. To look around an area, you can enter an address on zillow.com to get the aerial view of the property that you are interested and survey the surrounding environment. Besides, you can also do some research in the library or go to the local Chamber of Commerce to get information about a city or log on to the city's web site. At all costs, avoid airport, rail road, and heavy industrial area that constantly produce noise and air pollutants.
SCHOOL DISTRICT
The next thing is the local school district of your home. When buying a house, try to do some research on the local school district and find out the school performance ranking and public review of the school system there. Whether or not you have a family, you should consider the quality of the school system in the district where you want to live because an excellent school district will guarantee excellent resale value since there are always a lot of buyers seeking to buy a home in an excellent school district for their kids to have the opportunity to go to excellent schools.
NEIGHBORHOOD AND CRIME RATE
Look for a safe and well organized housing community. Your home should be in a safe and well maintained neighborhood to make it marketable for high resale value. New housing developments usually have Homeowners Associations established for taking care of the community; they enforce the covenants of their community, and also ensure that proper maintenance, care and order are in place to maintain their property values. At all costs, avoid run down neighborhood or a neighborhood that is going downhill. Go to the local police station to find out the crime rate in your area.
HOME STRUCTURE AND APPEAL
The home itself has to be pleasant in and out. A pleasant home should be well designed, constructed and maintained. If there is something that will turn you off in the house, walk away because your buyers will probably have the same kind of negative feeling of the house when it comes the time to sell it. Remember that no deal is better than a bad deal. There are always plenty of houses on the market for you to choose from.
Finally, buying a house that will have a good resale value is the key to building wealth in real estate and it would be a nightmare for anyone to move into a house and then later on regret it if the above elements were not considered before buying the house.
Emi also writes for www.findmyroof.com, a web site that provides free nationwide real estate listing service.
