Proposed Service Tax Will Hurt Michigan Seniors

I received this press release/letter to the editor today from the National Private Duty Association’s Michigan Chapter.  I thought you would appreciate seeing the honest truth about Michigan’s proposed service tax.  Though it will raise funds, it will hurt many for generations to come.

 

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Dear Editor:

 

The voice of Private Duty Home Care, The National Private Duty Association – Michigan Chapter, finds it appalling that our lawmakers are considering a service tax in an effort to overcome spending short-falls from years of poor fiscal responsibility.  Though raising taxes is a viable way to tackle the deficit, the strain of higher costs will be felt by a rapidly aging population.

 

The so-called “luxury tax” currently being debated holds its greatest flaw in that the majority of services to foot the bill are far from the category of luxurious.  For seniors, taxing needed services which help the elderly age in place begs the question, “If a service tax is implemented, how many seniors will no longer be able to afford basic care services they require to live in their homes?”

 

A recent survey, which had its results published in the New York Times in August, found that in America a full ninety-percent of seniors desire to live, and age, in their homes.  For many, this can only happen with the help of businesses who specialize in keeping seniors safely in their place of residence.  From basic home maintenance to in-home care, the cost of living at home continues to rise for seniors.

 

Over the next fifteen years, the number of seniors in Michigan will increase by 41%, bringing a full 500,000 adults above the age of 65 by the year 2020.  According to the Michigan Community for a Lifetime study completed by Michigan State, “…communities must make a commitment to ‘ease the way’ for this population group.”  The proposed service tax does not ease the way for seniors to continue living independent and productive lives in the State of Michigan.

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Top Ten Things to Know if You’re Interested in a Reverse Mortgage

Suppose you were an elderly woman living at home, but you were running out of cash to pay for things like taxes or even utility bills.  You had some trouble going up and down your steps to access the washer and dryer in the basement, and retreiving food from the lower level food pantry has become difficult.  Your children have mentioned that you should look into some form of community senior home, but you really wnat to stay put.  You’ve lived in your house for decades and can’t fathom leaving the house where you raised your children.  What can you do?

A reverse mortage may begin to make sense.  If you could access the equity in your home’s value to pay for your taxes and utilty bills, and even some in-home care to hlp you do your laundry and prepare some meals, wouldn’t it make sense?

The Department of Housing and Urban Developemnt has addressed some of the issues surrounding reverse mortages on thwir website, http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm.  The following is an excerpt from one of their pages that answers the biggest questions about reverse mortgages.

Reverse Mortgages are becoming popular in America. The U.S. Department of Housing and Urban Development (HUD) created one of the first. HUD’s Reverse Mortgage is a federally-insured private loan, and it’s a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. You can receive free information about reverse mortgages by calling AARP at: 1-800-209-8085, toll-free. Since your home is probably your largest single investment, it’s smart to know more about reverse mortgages, and decide if one is right for you!

1. What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well.

2. Can I qualify for a HUD reverse mortgage?

To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on 1-800-569-4287 to obtain the name and telephone number of a HUD-approved counseling agency and a list of FHA approved lenders within your area.

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Your Senior Advisor: Reverse Mortgage a Viable Cash Resource for Seniors

By Shannon Wygant, Certified Senior Advisor (CSA) and owner of the Waterford and Walled Lake, Michigan franchises of Home Instead Senior Care. 

Q.    I’ve heard a lot about reverse mortgages and wonder if this could be an option for us.  We’re an 83-year-old couple, living on fixed incomes, who are running short on cash.  However our home is paid for.  How do reverse mortgages work and what should we know about them?  What other ways can we get assistance to remain at home?

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash, according to the U.S. Department of Housing and Urban Development (HUD).

The equity built up over years of home mortgage payments can be paid to you.  But unlike a traditional home equity loan or second mortgage, no repayment is required until borrowers no longer use the home as their principal residence.  The loan and interest are paid off when the property is sold.To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older, who owns a home outright or has a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan. The owner also must live in the home.You can contact the Housing Counseling Clearinghouse at 1-800-569-4287 to obtain the name and telephone number of a HUD-approved counseling agency and a list of FHA approved lenders within your area.   

Reverse mortgage fees may be high, although the fees are rolled into the loan and not paid upfront.  It’s important to calculate the cost of a reverse mortgage against what you would gain, because once you enter a reverse mortgage agreement, the mortgage company essentially owns your home.  Discuss your options with an attorney.  You also can receive free information about reverse mortgages by calling AARP at 1-800-209-8085. Many seniors use the extra cash from a reverse mortgage to supplement social security, meet unexpected medical expenses, make home improvements and more, such as hiring at-home help to remain independent.  Another option for help at home is Home Instead Senior Care, a company that hires CAREGivers who can assist you with non-medical tasks such as meal preparation, light housekeeping, medication reminders, transportation, errands and shopping.   

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Editor’s Note:  This is a weekly series that will be emailed every other Monday to regional press affiliates to help promote health, welfare, and advocacy for our senior population.  Bert Copple, Director of Community Relations, can be reached via email at dcrcommerce@inspireseniors.com, or via cell at 248-953-9916.

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Senior Con Games: Local Senior Care Company and Fraud Experts Say the Stakes are High when Criminals Target Older Adults

While con games have changed with the times, the practice of defrauding consumers of all ages is nothing new.   When the target is a senior, however, the stakes have never been higher, say senior care experts.  Senior scams are costing older adults their life savings, their homes and even their lives.  

From investment fraud to lottery and sweepstakes scams to home improvement schemes, seniors often are sitting ducks for a criminal looking to make fast cash.  According to 2005 statistics from the National Fraud Information Center, 22 percent of telemarketing scam complaints were logged by those over the age of 70, which represents the highest percentage of any demographic group that year.

What makes older adults so vulnerable to tricksters, scammers and con criminals?  It appears that physical and psychological needs are at the heart of this issue, according to research and anecdotes from senior experts.

“Seniors often worry they will outlive their money and are concerned that they might not be able to continue to live the lifestyle to which they have become accustomed,” said Nancy Wasilk from the Home Instead Senior Care^® offices serving North and Southwest Oakland County.  “That’s among the concerns that we’ve heard seniors express and one reason we believe they are so vulnerable to scams,” she added.  “Some may get caught up in these schemes because they are looking for ways to improve their financial situations.”

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