Saturday Reporter-Herald April 23, 2011 E1 E1 ....
Real Estate Matters
www.homeandrealtyguide.com • Saturday, April 23, 2011 • Reporter-Herald
HUD drops harsh rule on reverse mor tgages
Guaranteed
energy bills
Oakwood Homes announces new program that will save you money
ILYCE GLINK TRIBUNE MEDIA SERVICES
T
he Department of Housing and Urban Development (HUD) has thrown out a rule it put in effect in 2008 for reverse mortgages that was causing grief for some homeowners and heirs. Reverse mortgages are loans available to seniors aged 62 or older who have equity in their homes. The loan makes cash or a line of credit available to the homeowner based on the equity in the property and homeowner’s age. Seniors have been warming to reverse mortgages because their obligation to repay the loan is deferred until they die, sell the home or move out. Prior to the 2008 rule change, the general practice stipulated that surviving spouses, who may have been removed from the title in order for the elder partner to qualify for the reverse mortgage, could purchase the home for 95 percent of the property’s market value. But at the close of 2008 — which Jean Constantine-Davis, a senior attorney with the AARP Foundation, characterizes as “uniquely bad timing because the real estate market had plummeted and was continuing to plummet” — HUD issued a letter that changed the game. In it, policy was amended to require that an heir pay the full mortgage balance to remain in the home, even if it exceeded the value of the property. As Constantine-Davis noted, “It put most of the (reverse) mortgages underwater immediately.” In March, the AARP Foundation filed a formal challenge to the rule. Last week, HUD, perhaps realizing that the increased attention garnered by reports of widespread foreclosures on seniors was bad public relations, proactively headed off foreclosure proceedings against the plaintiffs, and by extension, thousands of others. Constantine-Davis asserts that the AARP will do its part to help HUD spread the word. “These foreclosures should be stopped,” she said. “HUD issued a letter to the servicers, and the onus is on them to communicate with the homeowners. We’re still working with HUD to ensure the word gets out. There’s no question that people who are being foreclosed on now, and about to be evicted, will be helped by this.” The reversal of the 2008 rule only addresses part of the original lawsuit, but AARP’s legal team has reason for optimism. The other half of the equation is a Home Equity Conversion Mortgage program statute that specifies that if the borrower (or estate) does not pay the balance when due, the mortgagee’s remedy is limited to foreclosure. However, in light of last week’s capitulation, Constantine-Davis believes momentum is on the people’s side. “I don’t know what steps HUD is going to take from here,” she said. “They have filed a motion to dismiss the case. HUD may issue a new rule altogether. This could be good news for heirs.”
expenses such as bills, gas and food. With constant changing gas prices and othow great would it be er everyday expenditures, to know exactly how it’s comforting to know premuch your energy cisely what your energy bill bill would be each month? will be each month,” said No more waiting to see how Dwayne Montoya, Commumuch your next energy bill nity Manager at Thompson is going to set you back or River Ranch. “We’re not even having to worry about changing the way we build energy consumption at homes at all; we’re just conall. Oakwood Homes is fident that every home we providing just that in their build is at the same high enThompson River Ranch ergy efficient level so we can community ... peace of mind evaluate how much energy it with your home’s energy takes to live comfortably in usage. They have just aneach different size home nounced their Guaranteed and add this extra guarantee Energy Bill Program which for our homebuyers to prove does exactly what it says: it.” What if your energy bill guarantees the energy bill is higher than the pre-calcuon your new home for two lated amount? Oakwood years that it will not exceed Homes will reimburse 100 the pre-determined amount percent of the cost differcalculated. ence so you really won’t be “Everyone has fixed paying more than you had
PAID ADVERTORIAL
H
The blower door test ensures conditioned air stays inside; one of the three independent tests.
Photos courtesy Oakwood Homes
Mastic sealed air-tight ducts are well sealed to prevent duct leakage. anticipated. It guarantees peace of mind in at least one of your bills. Oakwood Homes is an Energy Star partner as well as having 100 percent of their homes tested by an independent 3rd party for energy performance. These 3rd party evaluations ensure every home exceeds standards and these tests allow Oakwood to calculate what your energy bills will be even before the home is built. Each home is taken through three tests to measure energy performance: blower door, duct leakage and air-flow tests. These help measure and guarantee that each home is well sealed and no energy is wasted in mak-
“With constant changing gas prices and other everyday expenditures,
it’s comforting to know precisely what your energy bill will be each month.” — Dwayne Montoya, Community Manager, Thompson River Ranch. ing the entire home comfortable with safe, clean air. Following the phrase “you get what you inspect, not what you expect,” they allow homebuyers to expect the highest quality since they prove it with every inspection. Being an Energy Star builder, Oakwood builds homes that not only provide you with guaranteed savings, but ensure you will have a more comfortable home, higher resale value through the energy features and reduces the impact on the environment. Tour Thompson River
Ranch this weekend from 10 a.m.-6 p.m. or stop by the sales office through Sunday, May 1, and enter to win a $100 gift card. To find out more about Oakwood’s Guaranteed Energy Bills, contact Mike Welty or Dwayne Montoya at 970-663-6428 with any questions. You can also view video tours of their quick move-in homes through YouTube.com by searching “OakwoodHomesCO.” Visit www.OakwoodHomesCO .com for additional information or to customize your own home in Thompson River Ranch.
Each Oakwood Home comes with a high performance furnace and water heater with PEX piping and drape insulated basement walls.
Take a video tour of quick move-in homes: • Search for “OakwoodHomesCo” at YouTube.com
I See GLINK/Page E3
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Garden in a Box kits tough enough for Colorado
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