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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (46981)	1/12/2006 5:11:03 AM
From: MoneyPenny	Read Replies (2) \| Respond to of 306849

Many of my friends fit your description. One co-worker made a cool 1.5M on her off the beach house after expenses. Going through a divorce, she took her 750k after setting aside money for the capital gain, and plunked every cent down on a new condo and upgrades to the tune of 80k. This is every cent she has in the world. She plans on selling this home in 3 years for 2 million and retiring. Her mantra, "you can't go wrong with Florida real estate". She keeps a daily tally of what she thinks is its appreciation. She thinks I'm insane with my diversified portfolio and modest home. MP

To: John Vosilla who wrote (46981)	1/13/2006 7:01:34 AM
From: shades	Respond to of 306849

The money they might have in a 401k or mutual fund pails in comparison to their total net worth that I bet is almost all RE these days. Bernanke has to get helicopter money into these peoples hands - they have to keep spending. I just listened at tom kelly some more on his real estate audio show. businesstalkradio.net He was pimping that the house of reps unanimously approved the new reverse mortgage bill and the senate was probably to do the same - instant helicopter money for all that tied up equity for all the new retiring baby boomers: He had a wells fargo reverse mortgage specialist on - she said people used the tax free money for buying a second home - buying a home for their kids - paying for kids college - help girlfriends buy a facelift - new cars - etc etc. clickpress.com The legislation eliminates the cap on the number of reverse mortgages that can be insured by the Department of Housing and Urban Development. H.R. 2892, the Reverse Mortgages to Help Americaâ€™s Seniors Act, applies to loans issued under the Home Equity Conversion Mortgage program of the Department of Housing and Urban Development. A Senate version of the bill introduced by Senator Rick Santorum (R-PA) is pending approval. Both bills enjoy bi-partisan support in Congress and are endorsed by consumer groups, such as AARP. The Home Equity Conversion Mortgage (HECM), an FHA insured reverse mortgage program that started in 1989 has a limit of 250,000 reverse mortgages. HECM loans are the most popular reverse-mortgage product. In April 2005, concerns of a possible suspension of the program arose when the cap was almost reached. The 2005 Emergency Supplemental Appropriations bill raised the cap from 150,000 to 250,000. seniorjournal.com The Reverse Mortgage to Help America's Seniors Act, sponsored by Reps. Michael Fitzpatrick (R-PA) and Jim Matheson (D-UT), amends the National Housing Act by removing the existing cap of 250,000 reverse mortgages that HUD can insure at any given time. Right now, there are about 150,000 HECM loans outstanding. "NRMLA commends Reps. Fitzpatrick and Matheson for their leadership in getting this bill through the House of Representatives," said Peter Bell, President of NRMLA. "As the popularity of reverse mortgages continues to grow nationally, it's absolutely critical that the cap is removed to avoid a disruption in the marketplace." During the most recent federal fiscal year ending September 30, HUD insured a record number of reverse mortgages—43,131—for a fifth consecutive year. The federally insured Home Equity Conversion Mortgage (HECM) accounts for 90 percent of all reverse mortgages made in the U.S. When the HECM program was created by Congress in 1988, a cap was imposed so lawmakers could periodically monitor the program’s performance and costs to the government. Now that the program has a track record, Bell said there's no continuing need for a cap because the HECM program generates sufficient funds to cover its costs through mortgage insurance premiums paid by borrowers. Reverse Mortgage Ceiling just went up: boston.com The loan limits for the conversion mortgages vary by area. The limit for homes in high-priced areas has risen to $362,790 from $312,896. The lowest loan limit, which generally applies to rural and non-metropolitan areas, rose to $200,160 from $172,632. Fannie Mae's national loan limit for single-family mortgages, including Home Keeper loans, jumps to $417,000 from $359,650. If you live in a higher-valued home but would like to cash out more than the FHA or Fannie Mae limits allow, consider a Cash Account loan. I like reverse mortgages. They give homeowners a lot of flexibility and, increasingly, aren't just being used by cash-strapped seniors. ''I know one couple who at 76 and 75 used proceeds from their reverse mortgage and bought a new Harley-Davidson motorcycle with a side car," said Peter Bell, president of the Reverse Mortgage Lenders Association. ''There are basically three types of people who get these loans. There are need-based borrowers, who need the money to supplement what they are getting. There are security borrowers, who are getting by but want to add a reserve to pay for such things as emergency repairs. And there are lifestyle borrowers, who are doing OK on their retirement income but want to add some discretionary income." To get an estimate of how much you might get in a reverse mortgage, check out AARP's ''Reverse Mortgage Calculator" at www.rmaarp.com. Canada is in on the fun too - chip.ca - similar program in Canada where you get up to 500k - what a great time to be a senior citizen - take your overvalued big house in new york - buy a nice florida house with your reverse mortgage and a harley with sidecar - do the snowbird flight on your new motorcycle every change of seasons and never have to pay back the loan - FREE MONEY BABY! I hear the blades of helicopters all over these florida trailer parks - will the money fall on them too? Thank god these gubbment programs will let you do a reverse mortgage on a manufactured home too - woohoo! hehe