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Spencer for Hire :: Protect and Respect our Elders

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In a few words or less let me explain the severity of this issue. Our mothers, fathers, grandmas and grandpas are being preyed upon by the scum of the earth. My industry is certainly no exception.

We have to protect them. In addition to the outside snakes, sometimes our own people and family members take our loved ones for granted.

Everyday people are sitting somewhere smoking weed or playing dominoes, scamming up get rich quick schemes instead of going to work or finding a job. We don’t have to compete with one another and we don’t have to steal from one another.

Here are a few things you should know. 1. A vast majority of elderly homeowners own their homes debt free. They need our protection. 2. The home equity held by the elderly may have some of them targets for various predatory lending practices. They need our guidance. 3.

Older homeowners live in older homes that are more likely to need repair, yet they are less capable of doing such repairs themselves. They need our assistance. 4. Older homeowners may be more vulnerable to fraudulent and predatory home improvement practices.

They need our advice. 5. Reverse mortgages are available to the elderly, yet some market participants may take advantage of the elderly in this market. They need our expertise. What are the statistics?

1. According to the American Housing Survey, in 1995 only 26 percent of owners age 65-74 had mortgage debt, and only 12 percent of those 75 or older had mortgage debt.

2. Analysis of the Survey of Consumer Finances indicates that in 1995, the median value of homes owned by the elderly was $80,000 for both those age 65-74 and those 75 and older. The median value of mortgage debt was $19,000 for those aged 65-74 and $15,900 for those 75 and older.

3. According to the American Association of Retired Persons (AARP), two-thirds of older households that owned homes had at least $50,000 in home equity in 1995; half of those age 65 and older held 59 percent or more of their wealth in home equity.

4. The Census Bureau estimates that the median net worth of households headed by a person 65 years or older was $86,324 in 1993 and home equity accounted for 44 percent of that net worth.

5. In 1995 more than half of owners older than 65 owned houses built prior to 1960, compared to 35 percent of owners younger than 35. How are they ripping them off?

1. Since many elderly households have limited incomes they may be more likely to be the victims of equity stripping, a practice in which lenders repeatedly refinance loans, with high fees, reducing a borrower’s equity in a home.

2. According to the National Consumer Law Center (NCLC), older Americans may be more susceptible to credit insurance abuses because they are more concerned about their own mortality or risk of becoming disabled than younger people and because they may not meet the underwriting criteria for other forms of life and disability insurance.

3. They may be more likely to fall victim to high pressure door-to-door salesmen, or to manipulative strategies. Such fraudulent practices include overpriced, substandard, unnecessary home improvement work.

4. Financial advisors who charge excessive fees for referring older homeowners to reverse mortgage lenders.

5. Failure of lenders to disclose large differences in total loan costs among the various reverse mortgage plans available to older homeowners, and only pushing the more costly alternatives.

The solution: We have to stick together and protect one another. Only do business with people you trust or you had checked out by someone you trust. Offer words of advice and wisdom to our elders at home and in church.

Explain the latest scams and what to look for. We have to protect every individual in our community both young and old. This is the only way we can grow. Call me if you need help 909-248-4830 ext. 228. See you next week.

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