Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, May 5 1992 Date: Tue, 5 May 92 05:31:47 EDT Message-ID: 05-05 0000 DECISIONLINE: Real Estate USA TODAY Update May 5, 1992 Source: USA TODAY:Gannett National Information Network REVERSE MORTGAGES OFFER EQUITY: Suppose after age 62 homeowners would get money for their homes from the bank every month until death. Eventually the bank would get the house, but not until the homeowner had died. That's how reverse mortgages work. It's just as it sounds, a mortgage in reverse. It's like borrowing equity on the house a month at a time and gives seniors a monthly "paycheck." (For more, see special Reverse package below.) PRUDENTIAL HEADS NORTH: The Prudential Real Estate Affiliates Inc. is expanding its franchise operations into Canada, and has awarded its first affiliation to The Prudential Preferred Properties, a Novia Scotia company. The Prudential Preferred Properties has a 30% market share in the four Atlantic provinces of Canada: Novia Scotia, New Brunswick, Newfoundland and Prince Edward Island. PROPERTY TAX HIKE CONSIDERED: Walker County, Ala., voters go to the polls Tuesday to decide whether to increase the property tax rate to 20 mills from 8 mills for public schools. Educators have warned of school closures or consolidations if the measure fails. The new rate would mean about $5 per month on a house and lot worth $50,000. SOUTHFORK RANCH TO BE SOLD: Southfork Ranch, a tourist attraction that has proven as uncertain as a wildcat oil well, will be sold at an auction May 30. The 41-acre ranch north of Dallas, made famous by the "Dallas" TV show, has been closed to the public since 1990. Glenfed Financial Corp. of California bought the property at a foreclosure auction in 1991 and has since spent $250,000 refurbishing it. GET APPRAISERS DIRECTORY: A free directory of 14,000 real-estate appraisers now is available. Write for 1992 Directory of Members, Appraisal Institute, Public Relations Dept., 875 N. Michigan Ave., Suite 2400, Chicago, Ill. 60611-1980 or call 312-335-4472. DEL-VAL DEBT SETTLED: Del-Val Financial Corporation, a real estate investment trust, Monday announced the completion of the settlement and restructuring of a company debt. Del-Val purchased $11.8 million of its own indebtedness and a loan receivable for a total purchase price of $3.3 million. The loan receivable was then sold to a third party for $1.1 million. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.84% Monday, down from Thursday and down also from 8.85% the week before. They were at 9.47% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.10%, down from Thursday and down also from 6.13% the week before. A year ago they were at 7.23%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.34% Monday, up from Thursday and up from 4.32% the week before. A year ago they were at 6.11%. For the 11th District ARM index, rates were at 5.611%, down from Thursday and down also from 5.800% the week before. A year ago they were at 7.654%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Monday, listing at 8.00%. That's down 0.03 from rates of 8.03% Thursday and down 0.11 from rates of 8.11% the week before. A year ago T-bonds were at 8.21%. SPECIAL PACKAGE ON REVERSE: AARP FIELDS REQUESTS: The American Association of Retired Persons receives more requests for information on reverse mortgages than on any other subject, says Bronwyn Belling, an AARP housing specialist. It "lets them take care of their pressing needs," she says. Capitol Holding Corp. says reasons for choosing a reverse mortgage vary. "It's different for everybody," says Capital's Doug Kronenberg. GOOD FOR MODERATE INCOMES: The program works for homeowners who don't have heirs or who live on a moderate monthly income, said Jack Grantham of Grantham Financial Services in Pensacola. Many seniors don't have much income, but have a lot of money tied up in their house, Grantham said. A reverse mortgage allows them to receive the money their house is worth, but keep the house until they die. MORE WANT TO STAY IN HOME: In 1986, a random survey by the AARP of 1,500 seniors showed that 78% wanted to stay in their home and never move. In a 1989 survey, the number increased to 86%. If the homeowner lives to be 110, the bank will continue making payments. To cover losses in such cases, banks charge a guarantee fee (7% of the home's appraised value) and an administrative fee (about $3,000). (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM