Helping Seniors With their Home (Real Estate)

“Helping our Older Generation” - A topic provided to me by Greer Boyce with Fox News.

How do you help the senior in your life who owns real estate?

This topic is something I like to call “Seniornomics”. The economic impact of many common financial decisions is very different for seniors than a majority of the population.

Here are some of my key thoughts:

First, determine the current situation (e.g., is there an outstanding mortgage, can they afford it, do they need additional income)

Second, determine the best case scenario for the future (e.g., the home is out of the parents name for estate tax purposes, cash in the home is used to care for them as they age)

Third, bridge the gap between where you are today and where you want to be in the future by making AND executing plans. This always beats acting in reaction to some triggering event that will likely be filled with lots of emotion.

Some key questions that will determine how you proceed are:

o Is there a potential estate tax issue? (the current exemption amount is 3.5M)
o Will your parent possibly move back into the home?
o Can your parent pay for the assisted living and the home with their current income?
o Are there multiple children involved? (this often creates conflict so its best to workout a plan of action now versus waiting until emotions are very hot)

Reverse Mortgages Hyperbole. Reverse Mortgage are often seen as the “easy” answer to many senior’s financial problems. The most important fact about Reverse Mortgages is that they were designed as a “last resort” for seniors who had troubled credit or income issues that traditional alternatives could not overcome. It’s often the “first resort” many misinformed families take and the risks are serious, expensive, and difficult to reverse.

Below is a video of this presenatation for the local Fox affiliate. Zeus Mortgage Complaints & Reviews (Yahoo)(Google)

Zeus Mortgage Overcomes Recession Odds!

For Immediate Release

Zeus Mortgage Overcomes Recession Odds,

Secures Impressive Spot in Annual

“2009 Inc. 5000 List”

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Inc. Magazine names Zeus Mortgage one of the fastest growing privately-held companies in the United States in the reputable publication’s annual ranking list

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Houston, TX. – Sept. 10, 2009 – Zeus Mortgage, a leading mortgage lender, today announced it has secured the ranking of 848th in the “2009 Inc. 5000” list, Inc. Magazine’s annual list of the 5,000 fastest growing privately held businesses in America. Zeus Mortgage also secured an impressive ranking as the 37th fastest growing privately held financial service firms in the United States in the reputable publication’s annual ranking list. The “2009 Inc. 5000” list can be found in the September 2009 issue of Inc. Magazine.  www.zeusmortgageblog.com

In the greatest recession since the depression, this mortgage company seems to be defying the odds. With national lenders such as Bank of America, Lending Tree and Wells Fargo all suffering catastrophic losses, this independent lender offers what homeowners are looking for.

“To be included in Inc. Magazine’s annual list of the fastest growing companies is not only an honor, but a reminder of what we set out to achieve when we first established our company,” stated Steven Kaufman, president, Zeus Mortgage. “We aren’t selling magic mortgages. We truly understand that each mortgage is significant in the lives of our customers. We’re helping families achieve the American dream of owning a home, saving for college and retirement, provide housing for their aging parents, and getting out of debt by refinancing. It’s more than just a mortgage for our customers, and we truly get that.” http://www.zeusmortgage.com

Additional information about the “2009 Inc. 5000” list can be found at Inc.com. More information about Zeus Mortgage can be found directly at AskZeus.com.

About Zeus Mortgage
Zeus Mortgage was founded in 2004, and is the leading mortgage lender in the United States. The company does not use a “one-size fits all” approach, but rather is committed to excellence in providing the right loan at the right time at the right price for its customers. Zeus offers every customer a “Free Instant Decision” on their home loan which gives their customers the information they need to make timely financing decisions. For more information about Zeus Mortgage please visit their Web site at http://www.askzeus.com/.

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Zeus Mortgage Complaints and Reviews

Free Money!

What is the difference between the $7,500 and $8,000 Tax Credit?

In an effort to decrease the inventory of homes for sale in the United States, Congress passed legislation in July 2008 to provide first-time home buyers a $7,500 tax credit (which is more like an incentive versus a credit) if you purchased a home between April 9th, 2008 and before January 1st, 2009. Then, to really make things interesting, in February 2009 they passed the American Recovery and Reinvestment Act which provided a true $8,000 credit for first-time home buyers who purchase a home between January 1st, 2009 and December 1st, 2009. That’s right… it says December 1st and not December 31st. There is no published information as to why the credit ended on the first of the month versus the end.

There is plenty of confusion as to who can use the credit, whether it has to be repaid, and how it’s collected. Here is chart that separates the key differences between the two credits.

Figure 1:

$8,000 $7,500

Required to be Repaid: No Yes

Term of Repayment: N/A 15 years

Interest Rate: N/A 0

When Repayment Begins: N/A 2010

Purchase Date to Qualify: 01/01/09 - 12/01/09 04/09/08 - 01/01/09

Tax Return to Claim the Credit: 2008 or 2009 2008

Income Limits to Qualify: Single: Up to 95k Single: Up to 95k
Married: Up to $170k Married: Up to $170k

Maximum Credit Calculation: 10% of Sales Price 10% of Sales Price
Up to $8,000 Up to $7,500

Property Types that Quality: New, Resale, Construction, New, Resale, Construction,
Townhomes, Condos, Townhomes, Condos,
Manufactured, Houseboats, Manufactured, Houseboats,
Mobile Homes Mobile Homes

IRS Form Used for Credit: Form 5405 Form 5405

Financing Restrictions: None Mortgage Bonds Ineligible

While this chart lays out the key differences between the two different credits, there are other key points that need to be addressed. If you’re purchasing a newly constructed house from a home builder then the purchase date will be determined by the settlement date and having this occur before December 1st, 2009 will be key to eligibility for this tax credit. In order to receive the maximum tax credit then your income must be below $75,000 for individuals and $150,000 if married.

The Baldest Guy In Houston

Zeus Mortgage Complaints and Reviewes

Your Closings Will Be Delayed!

New Rules Require at Least a 7 Day Delay before Closing… and Maybe 10

Federal Reserve Chairman Ben Bernanke recently stated “It is often said that a home is a family’s most important asset, and it is the Federal Reserve’s responsibility to see that borrowers receive the information they need to protect that asset.” On July 30th, 2009 new Truth in Lending Act requirements, otherwise known as Regulation Z, became effective.

The biggest impact of the new guidelines is that consumers will be required to receive a 7 business day delay as a cooling off period before they close on transactions after July 30th. There are a few other provisions that are worth noting (see Figure 1), but this is significant because typically mortgage lenders and banks could, if necessary, close a home loan within a few days or even hours. The 7 days is calculated from the date the Initial Disclosures are personally given or mailed to the consumer. It doesn’t depend upon receipt.

As you know, a consumer must receive a Good Faith Estimate (GFE) and Truth in Lending (TIL) Disclosure within 3 business days of a completed application. This provision will remain the same. What is new is the 3 day requirement when there are any changes to the initial Truth in Lending Disclosure. If the Annual Percentage Rate (APR) increases by more than 0.125% from the previously disclosed APR, then a new Truth in Lending Disclosure (TIL) must be provided to the consumer AND the loan cannot close until 3 business days after the re-disclosure is received (with acknowledgment of receipt) by the consumer. In short, if the APR on a loan changes then the consumer can’t close on that loan until they’ve had an additional 3 day delay. According to Calvin C. Mann, a Partner with Black, Mann & Graham, L.L.P., you can expect this delay on most transactions which will put the total waiting period at 10 business days. Incidentally, business days include all days except Sundays and federal holidays.

The only other major point regarding these new provisions is that no upfront fees, other than reasonable credit report fees, can be charged to a consumer until after they’ve received the Initial Disclosures which is expected to reduce the amount of “bait-and-switch” type loans previously offered.

Here is a chart that I think will help and can be used for quick reference.

Figure 1:

Initial Disclosures
3 days from application
This requirement is currently in place

Cooling Off Period
7 day waiting period
Starts after the initial disclosures before the loan can close are sent to the consumer

Changes to the APR
3 day waiting period
The consumer must acknowledge before the loan can close receipt or add 3 more days

This may not be all that bad. With HVCC time delays running havoc on many transactions this new 7 day cooling off period and 3 day APR delay could allow buyers to work with less mortgage distractions during the contract Option Period and allow time for the appraisals to come back. Of course, consumers who purchase with cash, purchase commercial properties or use certain hard money loans may be exempt from this. This isn’t the end of the changes and it’s expected that additional changes will be here in the coming months. Stay tuned…s

The Baldest Guy In Houston

Zeus Mortgage Complaints. Zeus Mortgage Reviews

Enterprise Champion Award

So, Houston Business Journal says we made the "Houston Fast 100", but appearently we've also become a finalist in the "Enterprise Champion Award" which is based on community involvment. We have a live interview Thursday with 6 judges so wish us luck. This is probably because of our work with the Park to Park Fun Run and Fanatical Change. Check out details of the next Fanatical Change event at www.fanaticalchange.org.

The Baldest Guy In Houston and Zeus Mortgage Complaints and Reviews

Extra! Extra! - READ ALL ABOUT IT

The Houston Business Journal just named Zeus Mortgage to the "Houston Fast 100" list which are the fastest growing companies in the city. Our official ranking will be announced at the awards luncheon on September 11. Stay tuned for our offical ranking and other details. Thank you to our friends and Customers for making this possible. All my best!

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The Baldest Guy in Houston

Facebook to Blogger - Final

Okay - I think this is it. Ta-Da!

Facebook to Blogger - Take 5

2:53AM - still working it out. Victory Will Be Mine!

Facebook to Blogger - Take 4

Okay, I think I've fixed this. If you need help with this problem then please reach out.

Facebook to Blogger

This is a fun problem. Whenever I enter something on FB for input into Blogger it enters it three or four times on both sites. It's like a really bad echo. Any suggestions FB friends?

Facebook to Blogger - Take 2

My entries are coming in triples. I'm trying to fix. Stay tuned.