10 Myths About Reverse Mortgages

Below are common myths that are important for you to be aware
of as you investigate the benefits of Reverse Mortgages!

Myth 1: I’ve heard I won’t qualify for a reverse mortgage because of my limited income.

Fact: False. Most traditional mortgages require income qualifications and a monthly mortgage payment; however, the HECM (Home Equity Conversion Mortgage) reverse mortgage generally does not use income as a factor and it pays you. Many seniors who don’t qualify for traditional financing are eligible for a reverse mortgage.

Myth 2: If I take out a reverse mortgage the lender will own my home.

Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due.

 Myth 3: There are restrictions on how reverse mortgage proceeds may be used.

Fact: False. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

 Myth 4: Only low-income seniors get reverse mortgages.

Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

 Myth 5: If I outlive my life expectancy, the lender will evict me.

Fact: False. Reverse mortgage lenders put no time limit on how long the borrower(s) can stay in their homes. Since homeowners still own the property, lenders cannot evict them as long as the borrower continues to live in and maintain the home, and property taxes and homeowners insurance are paid.

 Myth 6: A reverse mortgage will affect my government benefits.

Fact: A reverse mortgage generally does not affect regular Social Security or Medicare benefits. However, if you are on Medicaid, any reverse mortgage proceeds that you receive would count as an asset and could impact Medicaid eligibility. To be sure, we recommend that potential borrowers consult their federal benefits administrators or financial advisors.

 Myth 7: There are no objective advisors available to seniors trying to decide if a reverse mortgage suits

their needs.

Fact: False. Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

 Myth 8: My children will be responsible for the repayment of the loan.

Fact: If the borrower or their estate wants to retain the property, the balance must be paid in full. However, as long as the borrower or their estate sells the property to pay off the debt, there is no recourse if the HECM loan balance exceeds the home’s value at maturity. Any equity remaining in the property after the reverse mortgage is retired belongs to the borrower or their estate.

 Myth 9: Reverse mortgage lenders take advantage of seniors.

Fact: Seniors who have been victims of reverse mortgage lending schemes are extreme exceptions and typically victims of unsavory lenders. As a consumer, you should only work with reputable lenders. Protect yourself by conducting as much research as possible by consulting government agencies, your financial advisors and NRMLA, the National Reverse Mortgage Lender’s Association.

Myth 10: I cannot get a reverse mortgage if I have an existing mortgage.

Fact: False. If your house isn’t paid off, the proceeds you receive from the reverse mortgage must first be used to pay off any existing mortgage.

Call me today to find out if a reverse mortgage is right for you! Direct: 818-605-9100

Louis Rinn California Home Solution – Email: louis.rinn99@gmail.com   NMLS #214607 BRE#00965308

Fabulous Calabasas

This month I would like to feature the fabulous city of Calabasas. Since I came to Los Angeles in 1986, I often wondered the meaning of the name Calabasas. I always thought it was of Hispanic origin, but it wasn’t until I decided to mention it in my blog, that I learned about its history and the meaning of the name as well.

Calabasas, is a small city of 23,277 located in Southern California, west of Los Angeles, and offers a fabulous southern California lifestyle. It has a sunny climate, high-end homes, upscale shopping and the award-winning Las Virgenes schools. Many entertainment and sports figures make their home here.

A Quick History of Calabasas

The origins of the name “Calabasas” are unknown. Some believe that the area was named by the Chumash tribe from their word meaning “where the wild geese fly.” To this day, Canada geese still fly over the area annually, resting at nearby Pierce College in Woodland Hills. Most locals, however, are more attached to the colorful version of the name’s legend, when in 1824, a Basque rancher from Oxnard spilled a wagon-load of pumpkins on the road en route to Los Angeles. The following spring, hundreds of pumpkin seeds sprouted alongside the road. The area was named Las Calabasas – the place where the pumpkins fell – after the Spanish word for pumpkin or wild gourd: calabazo.

Indians, Explorers, Squatters, and Bandits

On the 22nd of February, 1776, the de Anza explorers were the first to explore the area. On August 18th, 1795, the San Fernando mission records included the first known mention of the name “Calabasas” and so began the rich history Calabasas was believed to be the border of two friendly tribal nations, the Chumash and Tongva, which lived peacefully among the oaks and sycamores, settling in canyons near streams that provided the necessities of life. Soon after Spanish explorer Juan Portola de Gaspar discovered the region with Father Sierra in 1769, the Indian trails became the footpaths and wagon roads that served the state’s mission era. When Mexico took over the territory around 1834, the region’s Spanish land grants were given to “Californianos,” who established the state’s romantic, but brief rancho period. Much of the Calabasas area was in Rancho El Escorpión granted to three Native Americans.
                       
In the mid-1800s when Alta California was given to the U.S. by Mexico, the mission era’s El Camino Real became one the many stagecoach routes. Calabasas became one of the most legendary frontier towns of the Wild West with its reputation of lawlessness and brawly homesteaders. Women would only enter the region if escorted, and stagecoach drivers avoided Calabasas Junction, hoping to bypass the bloody squatter wars and gun fights. It was the surveyor, not the Sheriff, who eventually came to town and brought back law and order by settling the land disputes.  

In the 1880s, at the height of the Wild West, Basque immigrant Don Miguel Leonis reigned over the western San Fernando Valley from his Calabasas ranch. He was known as the King of Calabasas, acquiring vast land holdings from the family of his Indian bride, Espíritu Chijulla, who owned Rancho El Escorpión. He added to his territory by forcefully acquiring neighboring ranchos and driving off squatters.  Miguel passes away in 1889 from injuries caused by a drunken fall from his wagon.

Seventeen years later and after a long legal battle to win the estate, on the 10th of April in 1906, Espitiru Leonis passes away. She leaves “Leonis Abode” to her son from her first marriage, Juan Mendez. He sold the last portion of the land in 1922 to Martin Agoure, after whom the township of Agoura is named.

First Subdivision “Park Moderne”
                       
In the early 1920s, Park Moderne, noted as Calabasas’ first subdivision, was acquired by two Hollywood businessmen. They bartered some acreage from local homesteader Sam Copper, trading the cost of the land for updating his home with indoor plumbing. The men established an artists’ colony, luring Hollywood prop artists out to work on commission in the scenic setting. The area is still home to many fine artists and local residents who now refer to this section of town as “the bird streets,” since each street is named after a local bird. Among the first residents in the colony were famed sculptor Jan de Swart, architects Rudolph Schindler and Jock Peters, and artist Andy Anderson, a famous woodcarver whose adobe home still stands today. A steady stream of celebrities and tourists visited him, including Jimmy Durante with his first wife, who often refused to leave. She enjoyed sitting on a favorite rock under a giant oak tree admiring the beautiful view. This inspired Jimmy’s famous closing line on his television show, “Goodnight, Mrs. Calabash, wherever you are.”
                                       
Originally, the colony contained pools, fountains, large totem poles, and three Native American footpaths. The Calabasas Historical Society has preserved the remaining footpath and the Zigzag Moderne fountain with the help of the Los Angeles County Building Department. Running between Bluebird Drive and Blackbird Way, the Bird Path is designated by wooden signs. There is a bronze plaque on the original fountain at the top of the path on Blackbird Way.

“The Commons”, as it is known, is one of the most popular shopping malls in the Los Angeles area. With its elegant, open-air layout, distinctive Mediterranean architecture, lavish landscaping and dynamic fountain areas, The Commons is the ultimate in shopping, dining and entertainment.

Please visit my website and see some of the recommended Realtors. http://www.iborrowbetter.com/recommendedProfessionals/Realtors/

For more information on Calabasas history visit the Calabasas Library.

 

A Look Into Chandler Estates by Louis Rinn

This month featured area is “Chandler Estate”

This is a classic home in Chandler Estates.

Recently I had an inquiry from a prospective buyer who was interested in purchasing a home in Sherman Oaks, specifically the Chandler Estates. He wanted to know the history, prices and all other pertinent information, as well as the name of a good Realtor. I was happy to provide the name of an agent, who is not only a great agent but lives in the area and knows what he’s talking about.

Sherman Oaks was one of the first Valley communities to experience intensive real estate development. Anticipating the development of the Los Angeles Aqueduct in 1913. Los Angeles Suburban Homes Company purchased 47,500 acres of the southeast Valley in 1910. In 1911, a subdivision map called Tract 1000 was filed with Los Angeles County. From that parcel, one of the partners in the company, General Moses Hazeltine Sherman, bought 1,000 acres for himself. In 1927, Sherman subdivided the property and sold the land for $780 an acre.

Over the years, many celebrities have lived in Sherman Oaks, including Stan Laurel and Oliver Hardy, Lou Costello, Marsha Hunt, Burt Kennedy, Hector Elizondo, Lily Tomlin, and David Caruso. A lot of celebrities can often be seen in Sherman Oaks, whether it is at the gas station, the cleaners, or at the local Starbucks. Harry Hamlin, of L.A. Law, and Linda Gray owned a clothing store there and are residents of the neighborhood.

Chandler Estate’s is located just minutes from Universal Studios and Hollywood, this upscale neighborhood is a few blocks away from the 101 Ventura Freeway, giving you easy access to Disneyland, Beverly Hills, Santa Monica, the major motion picture and TV studios, and the California beaches. This is the ideal location spot for anyone who is either moving to in Los Angeles or wants to be close to Studios.

Chandler Estates in Sherman Oaks

Named for Otis Chandler the Newspaper Publisher and Real Estate developer. Chandler Estates is a small Community nestled in Sherman Oaks, property prices in The Chandler Estates range from $700,000 to over $2,000,000. The average age of properties range from 1950 – 1970 with some newer development. In recent years the older ranch homes that lined Chandler Blvd. have been torn down and replaced with large Modern and Mediterranean homes. But if you venture into Chandler estates you will still find the wonderful homes from yesteryear.

Financing for these homes is available and can be as low at 10% down. In the last 12 months the real estate activity has increased due to the fact that many professionals want to take advantage of a family, friendly – tree lines streets with easy access to freeways, shopping malls, parks and churches. For property information and financing please click here www.iborrowbetter.com