Spanish speaking homeowners facing foreclosure thought they’d get help to modify their mortgages. Instead they were swindled out of $995, to $1,500 by company in the Dominican Republic according to the Federal Trade Commission. A U.S. District Court judge in Chicago issued a temporary restraining order to shut down the operation while the FTC pursues the case.
Court papers say telemarketers called homeowners all across the country and claimed they represented a Chicago company. The FTC says they falsely promised homeowners help and often advised them to stop making mortgage payments. The sales people apparently also said lenders would forgive late fees and penalties once the mortgage modification was completed . Homeowners received forms and material in the mail that asked for extensive personal information and often waited in vain after they paid upfront fees. The FTC says any assistance they did get, they could have gotten by themselves for free.
This is very useful information from New Jersey Governor Chris Christie’s office that outlines the FEMA process. It applies to everyone in any state hit by Superstorm Sandy, or Hurricane Sandy:
After registering with FEMA, disaster survivors receive a letter from FEMA concerning the status of their application. The letter is a starting point about whether or not the applicant will receive disaster assistance.
Applicants should read the letter carefully. Even if the letter says that you are ineligible, the reason might simply be that you have not provided all the information or documentation required. It does not necessarily mean “case closed.” When applicable, the letter explains what additional information is needed or how to appeal a decision that you do not qualify for assistance.
Ask for help if you don’t understand the letter. Call the helpline at 800-621-FEMA (3362) or TTY 800-462-7585 or visit a Disaster Recovery Center where you can talk with a FEMA representative about your particular situation.
To find the nearest center, log on to www.fema.gov/drclocator.
You may not have qualified for financial help right away, but that decision may change if you submit additional documents. Some of the reasons for an initial ineligible decision can be that you:
· Have not submitted a settlement or denial determination from your insurance company.
· Did not provide FEMA with all the information needed to process your application.
· Have not provided proof of ownership or occupancy.
· Did not provide records that showed the damaged property was your primary residence at the time of the disaster.
· Did not sign essential documents.
FEMA can never duplicate assistance from insurance or other government sources, but FEMA may be able to cover some of your uninsured losses.
Providing the requested information or taking the required actions outlined in the letter might change FEMA’s determination. The letter also explains how to appeal a determination. Appeals must be filed within 60 days of the date of the ineligible decision.
Remember: the letter from FEMA is a starting point. You should:
· Read the letter carefully.
· Ask questions and ask for help.
· Tell FEMA if you think the decision is incorrect. You have the right to ask FEMA to reconsider the decision.
by Barbara Nevins Taylor Almost one million people live in assisted living now and 74% of them are women whose average age is almost 87-years-old.* But as the economy improves it’s expected that many who put off selling their homes will look to independent living as a retirement solution. So how do you find the right place?
Larissa Kostal a gerontologist with Atria Senior Living suggests, “Go through an elder law attorney or geriatric care manager who can guide you,” You can find a geriatric care manager in your area through the National Association of Professional Geriatric Care Managers. Ask friends and look online. Use recommendations to make a list and visit each facility. I learned that the marketing people are always happy to see you, take you on a tour and answer questions.
If you’re shopping for a parent or relative, narrow your choices to the top three and then consult other family members. Once you all have a few options that you like, bring your parent or relative for a visit. Let them choose the one they like best, even if they are reluctant. It’s important for them to feel as though they have options.
LIKEABILITY
Make sure that you meet the staff that runs the facility and that you feel comfortable with them. It’s essential to have a clear line of communication with one person who can answer your questions and offer help when it’s needed. This is a partnership between your family and the facility and you need to know that they take the relationship seriously and are willing to work with you. Conversely, it works best if you designate one person in your family to deal with the staff at the facility.
MONEY
It’s also important to consider the financial aspect. Assisted living is expensive and residences charge fees for extra levels of service. Find out exactly what the charges will be before you sign up. I like facilities that operate on the “all inclusive,” model, although they rarely include everything.
THE ALL-INCLUSIVE PLAN
Rent, utilities, three meals, house keeping, laundry and some personal assistance are generally part of the all inclusive
Most in-house activities and local trips to supermarkets, shopping malls, religious institutions, libraries and doctors are generally included.
EXTRA FEES
Trips to see shows, or events that charge a fee generally require payment for that ticket.
Beauty parlor and grooming services
Some create care plans with levels that graduated according to the medication and the assistance needed.
At a level one, they may charge to administer two medications a day. The more you need, the more they will charge.
If help is needed to shower, or dress you are charged extra.
These fees add up. You might pay more than $1,000 a month in extra fees.
When someone suggests a mortgage modification for you to help you avoid foreclosure, proceed very carefully. Many of these people are out to make money, and a lot of them are running scams that may lead you further into debt.
The Consumer Financial Protection Bureau warns you to watch out when you talk to someone who says he or she can help modify your mortgage, especially if they:
Tell you to stop making mortgage loan payments. Not making your mortgage loan payments could hurt your credit score and limit your options.
Tell you to start making payments to someone other than your servicer or lender.
Ask you to pay high fees upfront to receive services.
Promises to get you a loan modification.
Ask you to sign over title to your property.
Ask you to sign papers you do not understand.
Pressure you to sign papers immediately.
You can get free, truthful help by callling (855) 411-CFPB (2372) from 8 a.m. – 8 p.m. ET, Monday-Friday to be connected to a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor today.
They call themselves the National Legal Help Center. But the Consumer Financial Protection Bureau (CFPB) alleges they were out to help themselves and fool homeowners about mortgage modifications.
The California business run by Najia Jalan and Richard K. Nelson targeted homeowners in 50 states. According to the CFPB, National Legal Help Center falsely claimed it would give legal assistance even though the defendants aren’t lawyers and didn’t actually provide legal help.
They charged a fee and promised to help homeowners get benefits from government-affiliated programs, including the recent nationwide mortgage servicing settlement between state attorneys general and the federal government, and the five largest mortgage servicers.
The CFPB says, “Defendants also falsely claimed that they were associated with the Independent Foreclosure Review program overseen by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. In reality, the defendants were not affiliated with either of the programs or in a position to provide the promised benefits to consumers.”
The CFPB got a restraining order against the company, essentially shutting down the operation until the case works its way through the courts.
The bureau also took action against the California based Gordon Law Firm, which targeted consumers in 25 states. The CFPB says, “The defendants allegedly gained homeowners’ trust by using Gordon’s “law firm” status and led consumers to believe that a law firm was working with their banks and mortgage companies to modify mortgage loans or provide foreclosure relief, while the defendants typically failed to deliver relief.”
We all hope that our property will escape undamaged when a storm or severe weather strikes. But if you live in area where weather is an ongoing issue and an unpredictable force, you know you have little control.
Insurance is supposed to take care of that. You pay the big premiums and count on the insurance company to come through for you when you need it.
Here are a few things that you can do to make sure that the insurance company fulfills its obligations to you in a timely manner. When an adjuster arrives, it’s important to keep good records. The Consumer Federation of America suggests you keep a notebook. Make sure you have your claim number.
If the adjuster doesn’t show up, write that down.
Make a list of what you lost. Photos help. If you’ve lost everything, someone may have photos from a holiday party that show your possessions.
Get repair estimates from reliable contractors.
Keep receipts from emergency repairs and temporary housing.
Flood insurance covers water damage from a flood. Other damage is covered by homeowners insurance, or not. If you’re denied, check your policy to make sure the reason is listed in the policy. The company may have language that limits what they will pay
If you think the company is wrong, talk to a supervisor. If that doesn’t work.
Complain to the state insurance commissioner and use your notes.
And check with a lawyer. The Consumer Federation of America says that courts often rule in favor of consumers.
It looks like help is on the way for homeowners struggling to get Sandy-related insurance payments. New York Governor Andrew Cuomo says major banks and servicers, which receive the payments from insurers and then pass the money on to homeowners, agreed to speed-up the process. New York’s Department of Financial Services has received complaints about bureaucratic delays that prevent families from making repairs and living in their homes.
“Homeowners need help now and that’s why insurers are sending advance checks to meet their immediate needs,” said Governor Cuomo. “Any delay in making these types of critical home repairs can mean the difference between a family being able to live safely in their home or remaining needlessly displaced for weeks or even months.
The following banks and servicers promised the governor they’d get the payments out quickly:
Bank of America
· Citi Mortgage
· JPMorgan Chase N.A.
· Wells Fargo Home Mortgage
· Apple Savings Bank
· Dime Savings Bank of Williamsburg
· Emigrant Savings Bank
· Homeward Residential
· M&T Bank, Nationstar
· New York Community Bank
· Ocwen Loan Servicing
As a daughter, a relative and a reporter I’ve helped and watched a number of people move into assisted living facilities. We wanted safety, security and a vibrant life for our family members and we urged them to make the change.
But I’m always curious about others I meet and I ask the obvious question, “Why did you choose this?” Most say, “My children are making me do it” Or, “My daughter thinks I need to be here,” or “Well, what was I going to do?”
They all say they didn’t want to give up their homes and their lifestyles. But when I see them a few months later, most seem to ease into the community and create a new life for themselves.
Photo by ConsumerMojo.com
Assisted living may not be the choice of your dreams, but it’s a good one when you’re ready to say that you can’t do everything for and by yourself. A well-run place gives you plenty of breathing room and makes everything easy.
You can have your own apartment and maintain your privacy. In some cases, there’s apartment sharing to help reduce the cost. You’re not a prisoner and you’re not trapped. You can come and go as you please. Some keep their cars, and go off by themselves regularly. But fundamentally, you are in a community with support and a safety net.
WHAT’S OFFERED First of all, you don’t have to cook. While most apartments include small kitchenettes with a refrigerator and a microwave, you share most meals in a dining room with service and a hotel atmosphere.
My mom moved into an assisted living facility, owned by Atria, on Long Island when she was 89-years-old. She lived there happily for six years. While she was reluctant at first, she acclimated quickly. My sister and I were surprised by her level of involvement in activities. She was always proud to show off. “This is where we have coffee in the afternoon, and this is where watch movies. Isn’t it nice,” she would say. On one visit, we found her singing with the chorus. It turned out she was a regular. We had no idea she liked to sing.
Generally, there’s a range of activities from trips to cultural institutions, supermarkets and shopping malls, to gentle exercise programs, to musical and theatrical presentations, to crafts, current affairs and games to stimulate thinking. I’ve use the word community a number times because belonging and participating is part of the package. You don’t feel isolated and lonely.
Photo by ConsumerMojo.com
The community atmosphere works particularly well for my cousin Marilyn. She’d lived alone in a big apartment and found it increasingly difficult to get out. But after she moved into assisted living in Queens, she made new friends, ate better, looked better and even began to have her hair done regularly.
MEDICAL HELP
Marilyn also needs medical help and uses the onsite nursing and healthcare assistance. She no longer worries about which medication to take in the morning, or the evening, “They know what to do,” she says.
Staffers work with the doctors of your choice and dispense medication regularly and safely. At some facilities, doctors make onsite visits. That worked well for my mother. Her mantra always was, “Stay away from doctors.” But eventually she needed some medical help and her visits to the doctor’s office became part of the routine. Frequently, specialists like podiatrists also make scheduled visits and treat patients on site.
This isn’t cheap. Depending upon where you live fees range from $3,000 a month to over $8,000. There are extra fees and add-ons as you need more assistance.
In some states, like New York, you can use Medicaid to pay for some assisted living facilities. The website New York Health Access run by legal aid attorneys and paralegals offers a guide to what’s available. I wish there were enough financial and political support to broaden assisted living programs. It makes sense to help older people continue to live with dignity.
The statistics about for-profit colleges reveal a depressing pattern of debt and failure for many students who see the schools as a way to improve their lives.
A report on the findings of a two year investigation by the Senate Health, Education, Labor and Pensions Committee led by Iowa Senator Tom Harkin found widespread problems in this industry.
For starters, tuition at for-profit colleges is six times higher than at community colleges and twice as high as you might find at a four-year public school. That might be okay if students benefited. But the senate study of 30 for-profit schools found many students attracted by web marketing, TV and other heavy advertising don’t achieve academic success.
Fifty-four percent of the students enrolled in the 2008-2009 school year withdrew by the summer of 2010. Most of the students borrowed money to pay their tuition, and close to one in four defaulted on their federal student loans within three years of leaving school.
Why should you care if you are not a student?
According to the report taxpayers invest more than $30 billion in these schools. Most of the money comes from federal funds. 25% comes from Department of Education, 37% Post 9/11 G.I. Bill benefits, and 50% Department of Defense Tuition Assistance Funds.
Senator Harkin said, “In this report, you will find overwhelming documentation of overpriced tuition, predatory recruiting practices, sky-high dropout rates, billions of taxpayer dollars spent on aggressive marketing and advertising, and companies gaming regulations to maximize profits. These practices are not the exception — they are the norm; they are systemic throughout the industry, with very few exceptions,”
In a news release on its website the Association for Private Sector Colleges and Universities says the senate report, “…continues in the tradition of ideology overriding reality. The report twists the facts to fit a narrative…”
Good news for some Bank of America mortgage customers. The bank sent letters to more than 200,000 homeowners who may be eligible to modify their mortgages under the deal hashed out with the federal government and state attorneys general. The idea is to create affordable monthly payments for troubled homeowners.
To qualify you must owe more on the mortgage than the home is worth and be at least 60 days behind on payments as of January 31, 2012. And your payments must total more than 25 percent of your total gross household income.
Bank of America’s Ron Sturzenegger said, “To the extent principal reduction and other modification tools help us turn mortgages head for possible foreclosure into long-term performing loans, it will be positive for homeowners, mortgage investors and communities.”
The foreclosure crisis is winding down after a tough spell for many homeowners. But there are still a lot of people, maybe you, who are in danger of losing their homes. Scammers know that and are on the prowl.
Most Americans get their mortgage modifications through the Making Home Affordable Program, or HAMP. Unfortunately, it was supposed help four million and only about 800,000 have been helped so far. But you can be one of them.
First, it’s important to avoid the scams.
There are basically four scams.
Counseling Scam- For an upfront fee, which is illegal under the Federal Trade Commission rules, they promise you that they will represent you before the bank. Once they get the fee, they disappear.
The Forensic Audit-Attorneys say they will help find mistakes made by the bank in your loan documents. That doesn’t work.
Rent to Buy-Fraudsters convince you to give them the title to your house. They say they’ll allow you to rent and they will pay the mortgage. Then you are supposed to be able to buy the house back. That never happens.
Bait and Switch- They give you the mortgage papers to sign for a new mortgage and buried is the document that surrenders the title to your house. You don’t need the scammers and it’s important to watch out for them.
There is a way for you to get a loan modification and it’s free. Simply contact a HUD approved counseling agency. They will give you free help. To find them all you have to do is search on the Internet for HUD approved counseling services, or go to HUD.gov
Alexander Roberts is a housing advocate who works tirelessly to make home ownership a reality for thousands of people.
With Community Housing Innovations,(CHI) the not-for-profit he founded in 1991, he gives out an estimated $2 million dollars in state and private grants every year to first time home buyers. C.H.I. also bought and renovated more than 100 homes, in New York’s Westchester County and on Long Island, and sold them to first time buyers. Alec is an award-winning former investigative TV reporter who knows how to spot a scam, and that’s why he thinks consumers need great advice.
Matthew Vann investigates the best way to pay off a student loan. He comes up with a solution that is steady and sure and reduces your burden in a safe way.
The average student loan debts is more than $23,000, and most people wait until after they graduate to begin to think about paying it off.
But reporter Matthew Vann discovered that the longer you wait to start to pay down the loan, the more you’ll pay. Let’s say you take out a graduate Stafford Loan for $20,000.
$20,000 STAFFORD LOAN
6.8% INTEREST
PAY WHILE STILL IN SCHOOL-$113.00 A MONTH
PAY AFTER YOU GRADUATE -+$2,000 IN INTEREST= $230
So you more than double your monthly payment. Columbia University Financial Aid Adviser Eric Halpern says, “The way interest works on a federal loan is that it’s capitalized. If you pay off that interest early, then there’s less of a payment in the long run.” Halpern encourages students to begin to pay off the loans early, “This is going to be a huge part of their lives.
Hopefully only 10 years, but maybe even longer. So it’s not something you can put off because it’s going to affect everything you do. It’s going to affect whether you want to get a house. If you want to get a car. You’re not going to be able to get the car you want if you’re making huge monthly payments. It’s going to affect everything you do. “
TRY TO AVOID LOAN CONSOLIDATION
Many who don’t pay as they go try to manager their student loans after they graduate by consolidating them into one loan.
While this can reduce your monthly bill by 50 percent, it’s far from the perfect solution. Consolidation leads you into a deeper financial hole.
Halpern explains, “When you do consolidation it becomes a 30-year loan. And if you only pay the minimum monthly balance, you’re looking at paying almost double to triple the original loan balance.”
Ever hear of “drip pricing?” It’s a term that some hotels use when they soak us with hidden fees. The Federal Trade Commission (FTC) warned 22 hotel operators that their ads and online reservation sites may violate federal law by failing to disclose these so-called resort fees.
In letters to hoteliers, the FTC cited consumer complaints about undisclosed mandatory fees for newspapers, use of exercise facilities, pools, Internet service and more. These fees can impact your budget because they run as high as $30 a night, and you often don’t learn about them until you receive your bill at check-out time.
Federal Trade Commission Chairman Jon Leibowitz said, “Consumers are entitled to know in advance the cost of their stays. So called “drip pricing” charges sometimes portrayed as ‘convenience’ or ‘service’ fees, are anything but convenient, and businesses that hide them are doing a huge disservice to American consumers.”
The latest numbers on student loans continue a trend of bad news. Outstanding student loan debt is now at $956 billion, an increase of $42 billion since the last quarter according to the Federal Reserve Bank of New York. $23 billion is debt that students just took on, and there’s $19 billion in defaults. The Fed says 11 percent of student loans show delinquency balances of 90+ days. Experts suggest that is important to try to pay down loans while you are still in school, and attempt to avoid consolidating loans once you graduate.
If you’re among the 12 percent of single parent college students you understand the difficulty of balancing home, school and study. Now an analysis of government data by the Institute for Women’s Policy Research(IWPR) reveals the depth of the problem. Researchers found single parent college students have few financial resources, need more financial aid and have greater unmet needs after receiving financial aid.
IWPR Senior Research Analyst Kevin Miller says, “Postsecondary credentials should be a pathway out of poverty, not a source of decades of debt.” But that’s apparently the case. Single student parents have 20-30 percent more debt one year after they graduate, according to the report. And ten years after graduation, they owe three times as much as their classmates.
No quick fixes are on the horizon. Barbara Gault, VP and Executive Director of IWPR says, “Keeping student interest rates low will… be critical to maintaining opportunities for low income parents to pursue college and economic self-sufficiency.
Assisted Living Quick Tips
