Home Insurance and much more

Insurance changes spark worries

2011-12-20T02:28:00.000-08:00

Two interested parties have expressed concerns to the New Brunswick government that proposed changes to insurance rules could mean consumers pay more for premiums.

In the last session of the legislature, Justice and Consumer Affairs Minister Marie-Claude Blais said the government is committed to moving forward with regulations that would prohibit the use of credit scores in underwriting insurance policies. It's an issue that has been a topic of discussion for some time now.

Ronald Godin, the consumer advocate for insurance for New Brunswick, commented earlier this year that more and more people are complaining about home insurance and the callers are upset that credit scores are being used to determine their premiums. He said about half of the home insurance companies in New Brunswick use the scoring to determine rates and if a policy should be renewed or granted in the first place. He said no company is consulting credit scores to set auto insurance rates, but there are no rules preventing that.

The Liberals then began calling for the practise to be discontinued, saying people were being refused home insurance because of a bad credit score, which is unfair. Liberal MLA Donald Arseneault said if someone loses their job and falls behind on their bills they could get a bad credit grade and lose their home insurance as a result.

The public and interested parties were invited to comment on the proposed legislation changes and at least two different organizations have opposed the change, saying the result will be higher insurance premiums.

TransUnion, a credit information management company, sent the Justice and Consumer Affairs Department a letter last week expressing "significant concerns" with the proposed changes. TransUnion president Ken Porter said overall higher rates will result.

"Most notably, we believe that the regulations' intent to prohibit the use of credit information to establish an insurance rating classification will lead directly to higher out-of-pocket expenses for the majority of New Brunswick policy holders," wrote the company president.

"Pursuant to the draft regulations . . . insurance companies would be disallowed from accessing an applicant's 'credit history, credit rating, credit score for the purposes of establishing an insurance rating classification.' Under this framework, the majority of New Brunswickers would be inadvertently punished for earning a good credit score because they would share risk with applicants who have poor credit."

Porter wrote that a number of TransUnion's insurance company clients have repeatedly indicated that the use of credit scores afford them the ability to deliver discounted premiums to an average of two-thirds of their clients.

Porter said consumers should continue to be allowed to voluntarily provide this information as a means of accessing lower insurance premiums.

"Good public policy should reward those New Brunswickers who have, through responsible credit management, earned the chance to reduce the cost of their premiums and save their hard-earned money," he wrote.

Consumers' Association of Canada president Bruce Cran also sent a letter to the New Brunswick government expressing similar concerns.

"By effectively taking away this freedom from consumers, the Government of New Brunswick is putting in place a set of rules and conditions that make it impossible for consumers who have good credit history to benefit in the form of lower premiums," he wrote. "This is contrary to the principle that good public policy should reward - not punish - those New Brunswickers who have, through responsible credit management, earned the chance to reduce the cost of their premiums and save their hard-earned money."

Finding the Right Home Insurance for your Home

2011-11-29T06:20:00.000-08:00

Choosing house insurance is an important part of being a home owner, much like many of the other expenses you will have when you own your own home, what you pay for home insurance is not cast in stone. There will always be ways to find more affordable insurance for your home, without having to spend hours and hours of your time trying to find the most affordable insurance. It is important that you do not sacrifice your coverage for the price you pay, but fortunately with the miracle of the Internet you will be able to find affordable insurance that still provides the excellent coverage that you need.

The biggest way to save money on your home insurance is to not assume that all insurances are the same and to simply take the first policy that is offered to you. May companies overprice their insurance for homes so it is up to you to get several quotes not only so you know what insurance should cost but so you will know a good deal on your home insurance when you see one.

Another way to save money on your home insurance is to keep track of the insurance that you have on your home. Some insurance may not be necessary for your home, and dropping that insurance could potentially save you hundreds of dollars every year. If you insure the contents of your home and most people do, you should keep track of this as well, if the value of your possessions changes you may find that you are over insured or underinsured for the value of your contents.

Getting insurance quotes is always the best place to start when it comes to your home insurance, not only will this give you some numbers and coverage to work with, but you can begin the task of researching what insurance company is right for you. You should never look just at the cost of your insurance as your determining factor, while always an important considerations; cost should be secondary in your final decision for home insurance.

You will want to look at the coverage that is being offered as well as the overall value of that coverage. Insurance is sometimes cheap for a reason, which means that you should look at what you are getting for the premium cost, to see if it really is a good deal. Hand in hand with this you should also look at the individual insurance companies this is also a very important part of the process.

Not all insurance companies are the same, some may give you a great deal of difficult in paying out when you need to make a claim while others may cancel your insurance with the first claim you make. While this is very common in the insurance industry not all insurance companies have these issues, so it will be up to you to do the research to find the company that that has the best reputation. Surprisingly it is some of the biggest and most common companies that have the biggest issues so do not use size or popularity as your only guide to finding the right insurance company for you.

Once you have a handle on cost, coverage and reputation you will need to balance these three factors, your decision may surprise you at this point and you may find that the insurance that you end up buying is not the one that you would have figured on before you started this process. This is why it is so important to do your homework carefully and to ensure that you have all the facts. Sure this will take you some time, but if it is going to save you hundreds of dollars every year you will find it is more than worth the cost.

Fortunately because of the Internet this process takes much less time that it would have taken 15 years ago, then you would have had to visit agent after agent, and work much harder to get all the information you needed. You may still have made the wrong choice even then because reviews were not as easy to get then as they are now.

Your process starts by visiting a quote site that can offer you several quotes with one form. At Home Insurance Quotes you will find that the quote process is simple and will yield you plenty of results from which to being your work. We offer you information on how to choose the right insurance in addition to our easy and fast to use quote form.

Home insurance holders will benefit from new Green Deal

2010-11-04T06:31:00.000-07:00

Property owners holding home insurance policies and seeking to radically reduce their monthly outgoings and improve how environmentally friendly their properties are will no doubt be interested to hear that a new initiative has been announced by the Coalition Government which may do exactly that.

Energy and Climate Change Secretary Chris Huhne recently unveiled The Green Deal, which pledges to equip home owners with cavity wall or loft insulation so as to make the residence more eco-friendly, reduce the need for heating and, naturally, the monthly costs involved with keeping the property at a comfortable temperature.

Mr Huhne stated that The Green Deal is being rolled out to assist with the offsetting of hikes in gas prices that have been highlighted by suppliers in 2010. The current economic conditions mean an increase in monthly costs for households, particularly in the cold winter months, could have a significant negative effect.

Home owners have been told that all renovation work will be performed by accredited professionals from reputable organisations and funds shall be pooled to make sure the finest materials are used.

Audrey Gallacher, head of energy at Consumer Focus, said the initiative could well give access to reduced energy bills for low-income households, stating: “It has the potential to help consumers to access a range of measures to stop their houses from leaking heat, without being put off by high upfront costs.”

Home insurance holders should look over the details of The Green Deal and see whether the initiative can provide them with assistance in making their property more environmentally friendly.

Ensure your business assets are covered with commercial insurance

2009-12-28T22:41:00.000-08:00

YOUR MONEY: Policies to consider
By Brad Oltmans, special for Inside Tucson Business
Published on Monday, December 28, 2009

Whether you own a coffee shop or an office building, running a business in today’s economy isn’t easy.

One of the biggest challenges both start-up and experienced business owners face is taking and maintaining the necessary precautions to safeguard their business and assets from the unexpected. After all, without proper protection, a natural disaster, lawsuit or other misfortune could mean the end of your business operation.

While business owners are unable to predict the future, they can take a variety of measures to protect their business and assets. The best way to do this is through procuring adequate commercial insurance coverage.

From business interruption to website, Internet-based and e-business coverage, the following is a list of commercial insurance policies small business owners should consider:

• Business interruption – Business interruption coverage typically covers losses stemming from natural disasters or other events that result in a business ceasing operation for an extended period of time.

• Crime – This will cover losses incurred from most criminal activities, including hacking, vandalism, theft, forgery and embezzlement.

• Disability – If an employee is injured and can no longer work, a disability insurance policy will pay a portion of his or her salary.

• Home-based business – Homeowners’ insurance policies often do not cover losses incurred by a home-based business. Consequently, home-based business owners can secure an additional insurance policy to protect their business property, liability, crime and theft, as well as employees and clients on the premises, among other risks.

• Key employee – This offers personal liability protections to key employees, such as directors and officers, should there be a claim against the business. In addition, this type of coverage can also provide life insurance for key personnel, naming the company as a beneficiary if the key personnel dies or becomes disabled.

• Medical – This will enable business owners to provide health and medical coverage for their employees.

• Product liability – Depending on the nature of the business, it may be prudent to have insurance to protect against lawsuits resulting from any potential harm caused by a product. Product liability coverage can protect a business against negligence claims when it comes to defective products, warnings and instructions as well as a breach of warranty, among other risks.

• Professional liability – Should business services be rendered by a licensed professional, the business owner should consider professional liability coverage. This coverage can offer protection against bodily injury, property damage, medical expenses and settlements, among other risks.

• Property and general liability – In addition to covering disasters like fire or flood, property and general liability coverage provides protection against property damage, bodily injury, medical expenses and legal costs, among others.

• Vehicle and/or fleet – Whether employees drive vehicles owned by the company or regularly use their personal vehicles for company business, a vehicle or fleet policy will cover liability for injuries should these vehicles be involved in a collision.

• Worker’s compensation – This pays for employees’ medical expenses and missed wages if injured while working and is required in Arizona. It typically covers lost wages, as well as medical and rehabilitation costs for employees injured on the job.

• Website, Internet based and e-business – A growing area of business insurance, website coverage provides protection against claims taken as a result of something on a company’s website. In addition, Web-based businesses should consider Internet business coverage, which will protect them from damages incurred by viruses, hackers, banner advertising and electronic copyright infringement.

The bottom line is that commercial insurance is available for practically any risk and is one of the biggest preventative measures business owners can take to protect their business and assets from the unexpected.

If you’re in the process of starting a new business, carefully consider your insurance needs and options. If you already have a business, check in with your insurance agent at least once per year to ensure your needs haven’t changed.

Contact Brad Oltmans, vice president of Insurance Services for AAA Arizona, at boltmans@arizona.aaa.com or (520) 885-0694 ext. 2751.

Electric Sticker Shock

2009-02-22T04:02:00.000-08:00

“They tell me I used it and I can’t argue with it. But I have a hard time believing I used that much [electricity],” David Meade said. “I had them [BVU] come out and reread my meter and they suggested an energy analysis, but all they would basically say is ‘you used it.’ ”

By David McGee
Staff Writer / Bristol Herald Courier
Published: February 22, 2009

BRISTOL, Va. – As a car dealer, David Meade understands sticker shock.

He’s seen customer’s eyes widen and facial expressions change when they realize the asking price is higher than expected.

The Washington County, Va., resident experienced the phenomenon for himself in mid-December – when he opened his electric bill. The computer-generated single sheet carried several startling numbers, but none more eye-opening than the bottom line – $612.

“They tell me I used it and I can’t argue with it. But I have a hard time believing I used that much [electricity],” Meade said. “I had them [BVU] come out and reread my meter and they suggested an energy analysis, but all they would basically say is ‘you used it.’ ”

The Herald Courier received nearly 100 telephone calls, e-mails and letters from irate customers across the Twin City that month. The overwhelming majority were Bristol Virginia Utilities customers, and none complained that their bill was too low.

The newspaper’s two-month review of electricity rates revealed the obvious: Customer bills doubled, tripled and, in some cases, increased even more – almost overnight.

The causes appear to be a perfect storm of continually escalating rates, unusually cold periods in November and December and a general unfamiliarity with the fuel-cost-adjustment charge that rose more than six-fold from January to October 2008.

Over the past 20 months, BVU customers have sustained two increases blamed on the need to charge rates comparable to other Tennessee Valley Authority suppliers and two additional base rate increases during 2008. Additionally, they began paying a separate fuel cost adjustment in January 2008, and saw that fee increase three times during the year.

The result was record power bills in December.

Electricity is sold in kilowatt-hours, a measurement of energy equivalent to operating a 1,000-watt appliance for one hour.

TVA, which supplies power to both BVU and Bristol Tennessee Essential Services, estimates that the average residential customer will use 1,325 kilowatt-hours a month.

Meade was billed for 5,479 kilowatt-hours, primarily to warm his 3,800-square-foot home that month.

“In December, we get hit with everything from property tax in Washington County, to home insurance, auto insurance and Christmas,” Meade said. “Then my BVU bill goes from $241 in November to $612 in December. And $103 of that was a fuel surcharge.”

Peggy Crosswhite, of Bristol, Va., saw her electric bill leap from $57.90 in November to $333.17 in December and her usage in her small house climb from 450 kilowatt-hours to nearly 3,000.

Chris Fleenor, Meade’s neighbor, said his usage doubled during that period – from 1,440 kilowatt-hours to 2,990 – and the bill went from $175.96 to $345.80.

Rick Shortt, also of Bristol, Va., said his bill also doubled, going from $251 to $511.

“I’ve seen it so cold my heat pump didn’t cut off, and my bills have never been like this,” Shortt said.

Despite being hospitalized for more than a week in December, with no one staying at his Bristol, Va., home, Jerry Olney’s electric bill hit $380.

Ernest and Allison Deggs, of Bristol, Va., compared their December 2008 bill to the same month in 2007. It showed their usage rose from 1,472 kilowatt-hours in 2007 to 1,980 in 2008. The bill increased from $127.93 to $233.85.

“He had a heart attack,” Allison Deggs said facetiously of her husband. “We’ve switched light bulbs to conserve energy, turned down the heat to 68 degrees, covered the windows with plastic and closed off the bedrooms.”

Meade said nearly all of his neighbors in the Benhams community, just outside the city limits but served by BVU, saw power bills double or increase dramatically during that same period.

“The bottom line is we just want to feel like we’re getting a fair shake,” Meade said.

Reasons

BVU officials said there are obvious reasons the bills were higher. During the fourth quarter of 2008, electric bills included the TVA’s higher fuel-consumption charge, called the fuel cost adjustment, in addition to newly increased base rates. And temperatures fell to sometimes record levels from November to mid-December, causing electricity use to increase dramatically, BVU records show.

Total residential electric use increased from about 14 million kilowatt-hours in November to about 24.7 million in December for its 13,697 residential customers, BVU officials said.

That represents an average use of 1,752 kilowatt-hours for each household.

The December 2008 total is comparable to January and February use, when temperatures are historically lower and power use peaks.

Compounding the issue, the increased demand followed mild September and October periods, when power consumption was well below average for those months.

In December 2007, BVU reported residential customers used about 5.5 million fewer kilowatt-hours of electricity – an average of 1,396 a customer.

The demand for power was similarly higher for Bristol Tennessee Essential Services. From November to December, the utility’s more than 28,000 residential customers used about 20 million more kilowatt-hours – going from 34.1 million to 54.3 million. That represented the third-highest usage month in 2008 and about 10 million more kilowatt-hours than in December 2007.

BVU President and CEO Wes Rosenbalm said electric-bill sticker shock happens every year when temperatures drop.

“When people get that first bill after it gets cold, the phones here start to ring,” he said.

BVU also received an increase in calls and visits from customers complaining about higher bills, said Brian Bolling, vice president of customer service, but he was unable to quantify that increase.

The utility received about 7,800 telephone calls in November and about 7,000 in December – but its records don’t show a breakdown among complaints, requests for service, or any other service function or question.

During 2008, BVU averaged about 7,100 calls a month.

BTES President and CEO Michael Browder said the number of calls received by BTES’ customer service also increased in December. From Dec. 12-18, customer calls shot up to about 200. But the calls fell to about 150 a week through December and the first week of January, then dropped to just over 75 in the second week of January and about 40 calls the week of Jan. 16-22.

Browder said the spike in calls, which are not just complaints but billing concerns and other questions, was typical for that time of year.

“There are people that get in a bind every month, and some of these complaints are the same people that call in saying they can’t pay their cable or Internet,” Browder said.

Fuel cost adjustment anger

Regardless of the provider, much of the consternation is directed at a separate charge called the fuel cost adjustment. Initiated by TVA in late 2006, the charge – collected by the utilities and paid entirely to TVA – is designed to offset what TVA spends to buy or produce electricity.

“There is no markup on FCA. It is a straight pass-through,” Rosenbalm said.

It was established because energy markets were becoming unpredictable and to keep TVA from seeking regular changes to the base rate it charges for electricity.

Over the past four fiscal years, TVA said it has bought almost twice as much electricity from other sources compared to earlier this decade. In fiscal 2005, purchased power represented 6.8 percent of TVA’s total supply, compared to 11 percent in fiscal 2008.

By contrast, lower-cost hydroelectric production has decreased from almost 12 percent four years ago to less than 5 percent last year – primarily due to drought conditions throughout the region.

Regardless of the reasons, Meade, the BVU customer from Washington County, calls the charge outrageous.

“It’s unbelievable that the fuel charge for a residential home is $103. It’s not right,” Meade said. “It should be no more than $50 for a residential customer. And if TVA can’t operate within its limits, it should restructure its business footprint.”

TVA spokesman Gil Francis said the fuel cost adjustment has become the industry standard.

“Nationally, most if not all utilities have a fuel cost adjustment. It was implemented in response to the dramatic increases in price for coal and natural gas,” Francis said. “The FCA is adjusted quarterly because the prices of these materials that TVA uses to run power plants have been very volatile.”

While the fuel cost adjustment rose twice in 2008, it was reduced in January and will drop again in April because the international energy market has gotten softer, Francis said.

TVA documents reveal that its fuel cost adjustment for BVU customers rose from 0.028 cents a kilowatt-hour in January 2008 to 1.891 cents during the fourth quarter of 2008. It was lowered to 1.392 cents in January.

That means a 2,000 kilowatt-hour customer who paid a $5.60 fuel charge in January 2008 can now expect to be hit for $27.84. During the fourth quarter of 2008, it would have been $37.82.

The charge is revised every three months, depending on market conditions. In August, TVA announced it would increase the fuel-adjustment charge by about 20 percent on Oct. 1. That rate was subsequently reduced by about 6 percent on Jan. 1.

“A lot of consumers hear natural gas prices are down and look at what a barrel of crude oil costs these days. They think everything ought to be going down,” BVU Chief Financial Officer Stacey Bright said. “Five or six years ago, the correlation between all these energy commodities worked. When one moved, the other ones did, too. That doesn’t work in the coal market today because of the exports to China.”

Currently, the fuel charge for BTES customers is 1.423 cents a kilowatt-hour. Browder, in a letter to customers, also mentioned the demands created by China.

“Last year, China added coal [electricity] generation plants that will generate more than six times all of TVA’s [coal-fired] generation plants. More than six times in one year,” Browder wrote. “China was an exporter of coal and now they’re using it all.”

Electric rates

Aside from the fuel charge, BVU officials are quick to point out that TVA is largely responsible for determining the rates consumers pay.

“When we signed the contract with TVA, we signed not just to buy power from them but to be regulated by them,” Rosenbalm said. “We went through the iterations in-house of looking at our wholesale cost for power, depreciation and [electric system] debt for what we think the rates should be starting out. We had to submit that to TVA and they have a whole group that looks at that and either blesses what your rates are or not.

“The BVU board [of directors] has the ability to make a recommendation for rates, but the TVA group has to approve that. TVA has the final say,” Rosenbalm said. “I think there is the impression we can do what we want to and that is absolutely not the case.”

Documents obtained by the Herald Courier show that 81 cents of every dollar paid by BVU electric customers goes to TVA. The balance includes 9 cents for general and administrative costs, 5 cents for operations and maintenance of the electric system equipment, 4 cents for depreciation and 1 cent for taxes and fees.

“Of a $200 electric bill, BVU has control of $28,” Rosenbalm said.

On the subject of debt, BVU’s electric system currently owes about $18 million, which accounts for about 2 percent of the general and administrative costs. TVA regulations forbid BVU and other providers from charging any other debt – such as its OptiNet telecommunications division – to its electric system, Rosenbalm said.

Francis, the TVA spokesman, said each provider is assessed individually, based on anticipated operating costs.

“We sell wholesale to 159 distributors and each distributor’s operating costs vary,” Francis said. “A larger, municipal distributor with a large business and industrial base – their cost may be less per customer than a rural system with little or no business and industry, that is spread over a wide area.”

Billing periods

There was another obvious reason that David Meade’s bill – and many others – were higher in December: The bill covered a 38-day period, or about a week more than average.

“I’ve been told that’s how they run their routes,” Meade said. “One month it may be a 38-day cycle, the next it may be 30. They should not charge people for more than 30 days.”

Fleenor, who also lives in Washington County, also criticized BVU for his bill which covered a 35-day period in mid-December.

“Whether the [electric] rates changed or not, in December we’re hit with personal and property taxes due and Christmas, and then we get billed for 35 days,” he said. “BVU doesn’t seem to have any compassion for people trying to make ends meet. That needs to be changed. My September bill was for 25 days. We need to have 25-day bills in December and January.”

Fleenor said his previous record bill was less than $260 and he was stunned when his December statement was for $345.

BVU officials said they’ve heard much about the extended billing period and are taking steps to ensure that future bills average 28-32 days.

“We had some swings in the time periods on our meter-reading cycles,” Rosenbalm said. “It’s somewhat of a manpower issue. We have four meter readers and one service man. We are making sure we help those customers with that, so you don’t have one month with a 35-day cycle and another with 28.”

Rosenbalm said BVU plans to use existing employees and schedule overtime periods rather than hire additional workers.

“We plan to block the range from 28-32 [days] and do what we have to, to get to that and control the cost,” Rosenbalm said. “We recognize that is a problem and we’re working to address it.”

BTES

Customers of Bristol Tennessee Essential Services, which serves customers in Bristol, Tenn., and a portion of Sullivan County, also had plenty to say about their bills.

“Our bill that covers part of November and part of December was about $480, when you subtract the charges for telephone and Internet,” June Hartley of Bristol, Tenn., said in a phone interview. “But the previous bill for electricity was $268. That’s climbing up to almost double the last bill.”

The bill she and her husband, Dalton, received for part of December and January was more than $430. Although the bill reflected about 100 more kilowatt-hours used, it was slightly lower thanks to a $23.29 credit received for the drop in TVA’s fuel-cost surcharge Jan. 1.

In August, Donna Tomblin and her husband, Norman, moved from a mobile home to a rental in Bristol, Tenn. Their electric bill had been around $200 a month, but in December it climbed to $361.

“This is not an easy amount of money for us to come up with as my husband is on disability and I can’t work due to an injury back in February 2008,” Donna Tomblin said. “His income is all we have to go on, which is a mere $1,100 a month. The rent here is $400 a month, with the water bill and a couple of other small bills that we have, we barely make ends meet.”

Retiree Henry Wisdom of Bristol, Tenn., said he was “blessed” to get a part-time job late last year, after his $322 electric bill arrived.

“Otherwise, I couldn’t have paid that bill and they would have turned my service off,” Wisdom said. “The Lord blessed me this time.”

Staff writer Gary Gray contributed to this report.
dmcgee@bristolnews.com| (276) 645-2532

Senior's home saved from foreclosure

2009-02-15T02:41:00.000-08:00

By PAMELA YIP / The Dallas Morning News
pyip@dallasnews.com

Forrest Brannon has great faith in God, but it was sorely tested recently when he faced losing his Dallas home to foreclosure.

Brannon, a 79-year-old veteran, said his mortgage payment more than doubled in a year from $379 a month to more than $800 because of late fees and an increase in the adjustable interest rate.

He got behind on his mortgage and then received a notice of impending foreclosure.

Texas' fast-track foreclosure process, which is the quickest in the country, left Brannon with only about a month to save his home.

But that was enough time for John Thurston, a mortgage broker at Acceptance Capital Mortgage Corp. in Dallas, to get involved.

After reading about Brannon in The Dallas Morning News in December, Thurston contacted Brannon and offered to help.

Brannon's home had been set for a foreclosure sale Jan. 6, but Thurston got that extended to Feb. 3. He got another extension to Feb. 10.

In the meantime, Brannon obtained a reverse mortgage from the federal government's Home Equity Conversion Mortgage program and paid off his original mortgage.

The program enables seniors who are homeowners to tap their home's equity through a lump sum, a monthly amount or a line of credit.

Under the program, the borrower doesn't have to repay the reverse mortgage until he moves, sells the home or dies.

When the loan must be paid, the borrower or the heirs will owe no more than the value of the home if they sell it to repay the loan.

The best part about Brannon's situation is that while his new loan totaled about $54,000 – short of the estimated $73,000 he owed on his mortgage – First Franklin Loan Services, which processed Brannon's mortgage payments, agreed to accept a reduced payoff, Thurston said.

So Brannon "will never have to make another payment on his mortgage," he said.

"All he has to do is to make sure he keeps insurance in force on his property and pay any taxes that are due," Thurston said.

First Franklin spokesman Bill Halldin said privacy concerns prevent him from commenting on Brannon's case specifically.

"Generally, we attempt to work in all situations to reach a resolution whenever possible that allows the homeowner to remain in their home," he said.

Brannon said he'll be forever grateful to Thurston.

"John did his Christian, American duty, and I haven't had to give him any money," he said.

"This is the way America was established. We are helpers of one another," he said.

Brannon said he knew God would take care of him.

"If I'm to keep the house, the Lord will make a way," he said.

"If I'm not able to keep it, the Lord will have something else for me."

Stashing your cash? Hide it in a safe place

2009-01-25T02:37:00.000-08:00

BY SUSAN CARPENTER
Los Angeles Times Service
Mattresses are so obvious. If you really want to keep cash in the house, stash it in a child's toy or a cereal box or a curtain rod. Don't hide it anywhere you've seen in a movie. And don't put it in a sock. Those are some of the suggestions circulating among cash stashers online as increasing numbers of Americans grow ever more wary of the global financial system.

Never mind that in 2009, U.S. bank and credit union accounts of up to $250,000 are covered by the Federal Deposit Insurance Corp.

As Americans face a triple whammy of declines in the stock, housing and job markets, they're looking for financial security. And some of them are indulging their fears by stuffing bills that had been destined for savings accounts into repurposed peanut-butter jars and tampon boxes and fire-resistant safes.

For Georg Lindsay, 22, it's her Kia that's become a quasi bank -- specifically, the pull-out ashtray and the pocket of space beneath the driver's seat. She also has stashed cash in an old purse and a hand-me-down bamboo cup from her grandmother. Lindsay started hiding money four years ago when she found herself out of work for several months.

''I was like, OK. You better stash whatever money you come across,'' said Lindsay, from Oak Grove, Ala., who was recently discussing money-hiding strategies on the social networking site Gaia Online.

A teddy bear, a picture frame and a narcotics safe from an old hospital were among the suggestions from the cadre of teenagers and twentysomethings who participated in the discussion.

As the economy crumbles and fiscal safety nets disappear, cash stashing is crossing generational and psychological divides, the behavioral pattern expanding beyond what had long been the domain of seniors and paranoiacs.

The world's largest safe manufacturer, SentrySafe, has seen a 30 percent to 50 percent increase in sales since September 2008. Hollandia International, which incorporates Safe-T safes on its ''extreme luxury beds,'' has sold more than 400 of the $800 add-ons since they became available last summer.

Online retailer Keeping Women Safe has seen a 15 percent jump in sales of its ''diversion safes'' -- money hideaways that are disguised to look like everyday household products, such as carpet cleanser, deodorant sticks and cans of potato chips. Paint buckets and soda cans are the site's bestselling diversion safes, said owner Ted Kollins.

''I'm not sure why,'' he said. ``If I were a criminal or the IRS coming to look in a house, paint cans and jars are the first place I would look.''

Cash stasher Shawn Forno, 26, said he tries to choose locations that seem obvious to him but ridiculous to someone who might be looking for money.

''If it tickles your fancy and yours alone, it is a great hiding place,'' he said. ``If you ever need a map or a string tied around your finger to remember it, try harder.''

Forno's first stash for cash was a tin can buried under something few would want to touch: a heaping pile of dirty laundry. That was two years ago, when Forno was working as a bartender and couch surfing with roommates. Since then, he has used a disco ball, an old VHS case and the lining of some never-to-be-worn-again raver pants.

Just be sure to remember where you hid the money. In October, a woman nearly lost $10,000 when she accidentally returned a box of crackers -- with an envelope stuffed full of $100 bills.

Financial researcher Jack Marrion understands the impulse to stash cash.

'It's the old, `If the bank fails and I can't get my money' logic,'' said Marrion, who finds the idea unwise.

The loss of money inside a home is not covered by homeowner's insurance, and banks and credit unions covered by the FDIC have never lost a penny of covered funds, said Marrion, who is also the president of SafeMoneyPlaces.com.

''The odds are much, much, much higher of having the money stolen than having the money lost,'' Marrion said. ``There are no FDIC failures, but there are burglaries.''

Building loophole shuts mans out of his own home

2009-01-17T23:12:00.000-08:00

Jesse James DeConto, Staff Writer

CHAPEL HILL - Andrew Dykers' home could fit four times inside a typical 2,000-square-foot home, but there's no room for it in state or local building codes.
So it has sat empty for nearly three months, and he has had to rent an apartment instead.

The problem is defining the building. It's a log cabin on wheels. It's an RV with solid-pine paneling, stainless-steel appliances and a hot tub. It's a custom-built trailer on concrete piers.

Dykers, a 35-year-old musician planning to attend N.C. Central law school next fall, had it built in upstate New York and installed at a mobile home park off Martin Luther King Jr. Boulevard in August. Two months later, the town revoked his building permit because the building lacked the necessary certification, effectively evicting him from his home.

Dykers is fighting city hall, and so far he's losing. Town officials have tried to work with him, but they feel bound by the law.

"I have to succeed," he said. "I have to live in my home."

By law, mobile homes have to be certified by the federal Department of Housing and Urban Development. This typically happens in the factories where they're built. Dykers' wasn't because his small-scale, custom builders, Adirondack Kabins, can't afford HUD certification.

Other types of factory-built homes have to be certified by the North Carolina Modular Construction Program. But, again, Dykers' builders don't do enough business in North Carolina to warrant getting the necessary certification from several states away.

"It just happens to be something that's not really regulated," said Kristin Milam, a spokeswoman for the N.C. Department of Insurance, which has tried to help Dykers.

Dykers spent months designing the interior, complete with a laundry room, a sleeping loft, a ceramic-tiled bathroom, quartz countertops, built-in wardrobes and dresser, and a screened porch.

The builders advertise the structure as an RV, but its exterior frame is 40-square-feet too big for that classification, and its permanent setting and 100-amp electric service push it further outside the norm.

State and local officials have spent many hours trying to solve Dykers' problem. It now appears he'll need to hire a third-party inspector to sign off on the safety of the home.

The $1,800 cost for the inspection is a sticking point right now. He thinks the town ought to inspect his home, as they would any other single-family home.

But Town Manager Roger Stancil said town inspectors can't inspect it as a single-family house without tearing open walls and floors to see the wiring and plumbing. Dykers is better off hiring a third-party inspector who would inspect it as a modular home, Stancil said.

Dykers has already spent about $2,100 renting a basement apartment while he tries to legalize his trailer. All this to try to save some money.

jesse.deconto@newsobserver.com or 932-8760

House prices to drop 10% in 2009

2008-12-23T20:09:00.001-08:00

House prices will end 2009 25 per cent lower than the peak of the market, according to new analysis.

The Royal Institution of Chartered Surveyors (Rics) predicts a 2009 still defined by house price falls – with a ten per cent drop over the year.

Simon Rubinsohn, Rics chief economist, said: “Lenders are likely to remain cautious in the near term in the absence of any ‘guarantees’ on mortgage backed securities.

“This, coupled with an increasingly gloomy economic picture, suggests that house prices will continue to decline in 2009.”

However, the body forecasts a ten per cent rise in the number of housing transactions, as the number of buyer enquiries is now starting to rise.

But much still remains on whether mortgage lending will ease in the coming year, so buyers can take advantage of the lowest interest rates since the 1950s.

Mortgage approvals are currently hovering just above 30,000 per month compared to the 129,000 seen at the height of the most recent boom in November 2006.

“With lenders likely to remain generally cautious for some time to come and the economy heading deeper into recession, early relief for the housing market seems improbable,” the report found.

The Rics report also highlights the problems over the economy and how they will affect the property market.

It states: “A sharp rise in unemployment will inevitably have some impact on buyer confidence, depressing transactions. At the same time, the downturn threatens to push up repossessions and forced sales, increasing stock on surveyors’ books.”

House building is also expected to drop further. Rics predicts that new housing starts for 2008 are unlikely to be much above 110,000, a figure far lower than recorded during the recession of the 1990’s.

Home building output is set to plunge to a new low in 2009 with new starts expected to fall comfortably under the 80,000 mark.

Rics claims this low level is house building is planting the seeds for even house price volatility in the coming years. It also blows the government's target for building two million new homes by 2016 to the wind.

Mr Rubinsohn added: “A major concern is the massive reduction in the number of new homes now being built.

“It is likely that there will be even fewer new starts in 2009 leading to a very real risk that a serious housing shortage will fuel another bout of volatility once the current crisis eases.

Workplace becoming lucrative for insurance business

2008-12-14T00:53:00.000-08:00

By L.M. SIXEL Copyright 2008 Houston Chronicle
Dec. 12, 2008, 10:41PM

It’s annual benefits enrollment season, and companies increasingly are stuffing their packets of offerings with more than just the usual medical, dental and vision care policies.

The workplace has morphed into a popular — and lucrative — place for insurance companies to find new customers. Instead of cold-calling prospective clients at home, agents are showing up at conference tables and lunchrooms armed with PowerPoint presentations to sell cancer insurance, prepaid funeral expenses, various supplemental coverages and other kinds policies, even for pet care.

And employers, eager to provide workers with a wider array of benefits without having to subsidize them, are welcoming them in.

“It’s becoming a bigger and bigger market as employers try to find a way to offer employees value and not incur a cost,” said Jill P. Watson, managing partner of Gallagher Benefit Services, which evaluates insurance products for its corporate clients.

Short-term disability and extra life insurance are the most popular offerings, Watson said.

As companies increase health care deductibles, boost co-pays and eliminate some coverage, the extra policies give workers more tools to prepare for the worst, said R. Kiah Townsend, Houston territory manager for Colonial Life, one of the biggest sellers of what’s known in the industry as “voluntary” insurance.

Full cost
One of the reasons Jessica Montgomery bought the three types of extra insurance the city offers — auxiliary cancer, hospitalization and accident policies — is to make sure she’s protected from the unexpected.

“So many people don’t realize that there are several things that their normal insurance won’t cover,” said Montgomery, administrative assistant for the Houston Film Commission. She pays $69 every two weeks for the extra coverage for herself and her husband.

She ticked off some of the benefits: a $1,000 cash payment on the initial cancer diagnosis, experimental treatment and lodging for out-of-state medical care.

The fear of getting strapped for cash during a medical emergency is what drives city employees to sign up, said acting human resources director Candy Clarke Aldridge.

Employees pay the full cost of the insurance, which is deducted directly from their paychecks, said Aldridge. It has been offered by Aflac since 1994 when the city’s benefits package was revamped.

Aldridge estimates about 35 percent of the city’s 23,000 employees have bought one or more voluntary plans.

‘A mixed bag’
Many of the extra policies make more sense for some workers than others. For instance, a young, healthy non-smoker might get a better deal on life insurance in the open market, said Watson, the benefits services executive. But a smoker with a history of health problems might save money with the one offered on the job.

Some of the products are loaded with commissions, Watson added.

“It’s kind of a mixed bag,” said Steve Alderman, vice president of human resources for South Texas College of Law.

Don’t miss the money
The policies cover expenses that aren’t part of typical health care plans, he said: “But as far as the percentage of people who benefit, it’s relatively low.”

For many employees, the first time they have had someone explain life insurance or disability policies is during one-on-one work-site talks with agents, said Jennifer Daniel, assistant director of voluntary sales for the Principal Financial Group in Des Moines, Iowa, who this year spoke before a meeting of benefit administrators in Houston.

For Principal, Daniel said, those individual counseling sessions are effective, doubling the number of employees who end up buying voluntary insurance to about 60 percent.

Employees also like the fact they can pay the premiums directly from their paychecks. “You don’t even miss the money, and the idea of knowing you have some extra coverage is really good if something does happen,” said Montgomery, who sat down recently with an Aflac representative to review her options.

Personal touch
That personal touch also has worked well for MetLife, whose biggest workplace seller is extra life insurance. Its homeowners and auto insurance products are popular, too.

Increasingly, employees are getting used to buying their financial protection and retirement planning products at work, said Randy Stram, vice president of employee benefit sales for MetLife in Bridgewater, N.J.

A MetLife survey found that 52 percent of employees in 2007 bought their extra life insurance and other policies at the office compared with 46 percent the previous year.

The survey, which was conducted online and on the phone, questioned 1,200 employees and 1,600 employers.

It was during annual enrollment time a couple of years ago that Judi Taliaferro enrolled in a supplemental hospitalization insurance program that would pay her $100 a day for out-of-pocket expenses.

Previously Taliaferro, director of convention services at the Greater Houston Convention and Visitors Bureau, had emergency surgery and wondered whether she could shoulder another hospital stay.

“I felt it was a benefit, and I’m getting older,” said Taliaferro, who pays around $44 a month for the coverage but isn’t sure she’ll renew it for 2009.

lm.sixel@chron.com

The Highlands of Golden Oaks Village Leads Retirement Communities in Poconos with Free Retirement Guide

2008-12-08T03:39:00.000-08:00

White Haven, PA (PRWEB) December 8, 2008 -- The Highlands of Golden Oaks Village, one of the finest retirement communities in the highly sought-after Pocono real estate market, is pleased to announce that its FREE 2008 Guide to Remarkable Retirement in the Western Poconos has been warmly received by the market. "We know there are lots of seniors and soon-to-be-seniors that consider themselves active adults and are looking for that special place to retire," said John Herman, CEO of Highlands of Golden Oaks Village. "With all of the homes for sale in PA, our free guide has information about this area's four seasons of recreational activities, championship golf courses and ski areas, and of course our pristine lakes and state parks. In short, the guide has everything an active adult researching retirement communities would need to consider when looking at the Pocono real estate market."

The FREE 2008 Guide to Remarkable Retirement in the Western Poconos is available on the website of Highlands of Golden Oaks Village, which can be found at www.PoconoHighlands.com. Simply fill out the form requesting the guide and you will soon receive all of the information for active adults interested in retirement homes for sale in PA.

About Highlands of Golden Oaks Village:
Pocono real estate doesn't come any picture-postcard prettier or more affordable than the Highlands of Golden Oaks Village. Conveniently located on Route 940 just one mile from I-476 (the PA Turnpike's Northeast Extension) and I-80 near shopping, healthcare facilities and hospitals, The Highlands' combination of energy efficient, low maintenance homes and wooded-view home sites means you get access to homes for sale in PA -- and the retirement of your dreams -- at a price you can afford. Property taxes, insurance and utilities are very inexpensive. With four-season sports, golf, casinos, NASCAR, harness racing, hiking, biking, water sports, on-site fitness center, planned indoor swimming pool and a low cost of living, the Highlands of Golden Oaks Village is Pocono real estate that is everything an active adult could wish for.

Post Office has Christmas covered

2008-12-02T06:43:00.000-08:00

By Becca Talbot becca.talbot@consumerchoices.co.uk

The Post Office is increasing its home insurance cover by 10% for the whole of December to ensure customers are fully protected over the Christmas period.

During December, the Post Office (www.postoffice.co.uk) will increase home insurance cover for new and existing customers, to protect against theft over the Christmas period.

The increase will be in affect from Monday, 1 December to Wednesday, 31 December.

The level of cover for Post Office contents insurance is automatically increased, at no extra cost during major celebrations such as Christmas, to ensure that any gifts or extra valuables in the home are covered.

Head of home insurance at the Post Office, Emma Baunach, said: “At this time of year people often have more valuables in their homes than usual. Over Christmas you don’t want to be worrying about whether or not you have enough cover on your home insurance, so we made the extra cover automatic to make sure you are protected.”

New Post Office home insurance customers can also claim £50 cashback when taking out a combined Post Office buildings and contents insurance policy in any UK branch until 31 March, 2009.

For more details on what the Post Office has to offer for home insurance, visit your local branch, go to www.postoffice.co.uk, or call 0800 169 6500.

Chris Eagle, commercial manager at CreditChoices.co.uk said: “The 10% extra cover offered by the Post Office is a nice little Christmas bonus, but if you expect to have very expensive items in your house, it’s essential to check the terms and conditions of your policy to ensure that they are covered in the event of an accident.”

Insure4USA.com Launches Website to Provide Local Provider Comparisons

2008-11-29T03:27:00.000-08:00

Insure4USA.com recently announced the launch of their new online service which provides individuals with fast, free insurance quotes from their local insurance representatives.

(PRWEB) November 29, 2008 -- Insure4USA.com recently announced the launch of their new online service which provides individuals with fast, free insurance quotes from their local insurance representatives. Unlike other websites that use nationwide services to fill customer insurance requests, Insure4USA.com aims to provide its users with results from insurance companies that the individual can meet with face-to-face.

The Insure4USA.com website covers most insurance types with auto insurance, life insurance, health insurance, and home insurance being at the forefront of their services. Users simply enter their zip code and fill in a short survey based on the type of insurance they are interested in purchasing.

Auto insurance quotes are available on any vehicle type and rate comparisons are provided to make sure customers receive the best rates locally. In addition, all insurance types (auto, home, life and health) provide discounts that have been established through exclusive partnership programs between Insure4USA.com and local representatives.

"Insure4USA.com aims to add a personal approach to the online insurance market," founder Alex T. stated. "Unlike other services that provide a 1-800 phone number and a website for customers to contact, we provide a local address, a local phone number and even driving directions if they are needed."

It is this personal approach that both propels and separates Insure4USA.com from its much larger and less intimate competition. The company's goal in creating the website was to provide the possible customer-centered experiences in ways that matter to is user base.

"We realized early on that it's difficult to compete with monster-sized insurance company finders that aim to provide traffic to equally monster-sized insurance companies. So, we decided that we would work for the local insurance companies, the ones whose core values remained unchanged and whose customer service and personal approaches have kept them in business for decades," Alex T. added.

In the end, it is the customer who wins, both by receiving excellent rates on insurance and by being able to invest their resources locally with insurance companies that share the common goals of success with the customer.

About Insure4USA
Insure4USA has been offering free auto, health, home and life insurance quotes online since 2008. For more information, visit Insure4usa.com (http://www.insure4usa.com).

Buying foreclosed home can -- sometimes -- make best of bad situation

2008-11-15T19:58:00.000-08:00

by Melissa Burden | The Flint Journal
Sunday November 16, 2008, 12:57 AM

You've seen the foreclosure notices posted in the windows of your neighbor's home.

And while they're certainly nothing to gloat about, to many people scouting for a great housing deal at an affordable price, foreclosures pose a boon.

Foreclosure sales continue to drive the local real-estate market and likely account for more than half to 60 percent of the houses selling here, said Mark Dickens, director and chief executive officer of the Flint Area Association of Realtors.

The good news: Year-to-date association sales --ย which primarily cover Genesee County -- are up 18.6 percent (4,782 compared to 4,033).

The bad: The average sales price is down 22.9 percent ($84,773 compared to $109,969 through the same time in 2007), Dickens said.

"Most of these homes are selling for about 60 percent to two-thirds of what their peak value was in 2005," said Randy Haney, broker/owner of Flint Township-based American Associates Inc. Realtors and Builders.

Foreclosures are popular and are attracting the likes of not just investors, but people who you normally wouldn't think of us home buyers.

Someone like Jessica Coblentz, 18, a 2008 Davison High School graduate.

Coblentz works as an assistant for INCA Realty in Flint Township and bought her first home, a foreclosed three-bedroom Cape Cod in Richfield Township, earlier this year.
She closed on the deal right after her graduation open house.

Coblentz said she wasn't looking to buy a home, but came across a foreclosure listing just a few blocks from her parents' house.

She paid $47,500 for the roughly 1,600-square-foot home that needed some cosmetic work. She was able to roll the closing costs into a mortgage totaling about $52,000.

Coblentz may be young, but she knows a deal when she sees it.

The house recently appraised for about $88,000. It had sold for $142,000 in 2001.
Now, while many of her friends are living in apartments, she's paying about $570 a month total -- "pretty much the same as they are," she said -- for a house payment, insurance and taxes.

So how can you find a foreclosure?

One way is to simply look around and pay attention to what's happening in your own neighborhood.

Secondly, filings on homeowners who have defaulted on their mortgages and are heading for foreclosure are listed in publications such as the Flint-Genesee County Legal News.

There also are several Web sites that list foreclosed properties. Realtors also have access to foreclosure listings on the multiple listing service database.

Ann Fotenakes, a real estate broker for Signature Real Estate Ltd. in Flint Township, buys foreclosures herself and said her office runs daily searches through the MLS for about 10 people looking for such buys.

So now that you know where to scout the potential deals, what else should you expect if you're interested in buying a foreclosure?

โ€ข Buyer beware: Not all the houses are in good condition.

Some may have been sitting vacant for six months or longer. And they might have flooded basements or burst pipes, or interiors pilfered and left a mess, area Realtors say.

"They'll take light fixtures. They'll even take things that are new, such as a furnace," said Haney, who lists Countrywide Financial and Wells Fargo Home Mortgage foreclosures.

Haney said in one foreclosure, someone removed half of the kitchen countertops and cupboards.

"(Potential buyers) want to expect there's going to be some expenses," Haney said. "Sometimes it's real obvious."

To safeguard yourself, order an inspection on the property at your own expense. With foreclosures, this generally occurs after the bank accepts your offer.

Despite the horror stories, area Realtors say some foreclosures are nice and need minimal, if any, repairs.

"Just because it's a foreclosure, it doesn't mean it's in bad shape," said Wilson Lahoud with INCA Realty in Flint Township. "Some are in move-in condition, as well."

• You may have to wait longer to get an answer on an offer. Patience is key, Realtors say.

Fotenakes said depending on if a bank owns the property and where the bank is located, clients sometimes wait a few days to up to three weeks to hear whether their offer was accepted.

That differs from traditional owner-occupied sales where you likely hear back from the seller or seller's real estate agent the next day.

• Your offer may not be accepted.

Some of the hot foreclosures are garnering multiple offers, meaning yours might not be the winner.

Lahoud said you should give your best shot with an offer the first time.

That's because, unlike in a traditional sale, a bank doesn't always counter the offer. They may just reject it.

To make an offer, be sure to have a pre-approval letter from a mortgage company or bank saying you can get a loan, or proof of funds if you're making a cash offer.

Lahoud said if you don't have the letter in hand and find something you like, you may have to wait two to three days to get the written pre-approval. And that might be enough time to lose out on a deal.

A cash sale at least may go faster than those that require financing.

Bob Prusinski, 63, of Flint is scheduled to close on a 1,000-square-foot, three-bedroom ranch foreclosure later this month in Flint Township.

Prusinski is paying $17,000 for the house that sold four years ago for $94,000. He said he's rolling another $10,000 in needed repairs into a special 203(k) mortgage offered through the Federal Housing Administration.

Prusinski, a retired postal carrier, said the home needs a new furnace and he'll repair the bathroom and kitchen and paint the interior.

He said the process is taking longer than expected (he put his offer in in early September) because he had to answer numerous questions for the mortgage approval. He also had to get contractor quotes for the repairs, which had to be approved by the underwriter.

"I feel I'm getting a very good buy of the house," Prusinski said. "Secondly, down the road I believe the property I'm buying is going to appreciate after the housing crisis subsides."

Insurance for Brown tops Craig's list of positives

2008-11-04T00:46:00.000-08:00

BY BRAD BIGGS bbiggs@suntimes.com
The Bears can feel good that Craig Steltz is one of the most improved players since training camp closed.

The rookie safety stepped in for Mike Brown in the second half Sunday and came up with a big interception in the end zone and generally impressed, a good sign considering Brown's fragile history.
''If Craig doesn't make the interception, who knows,'' coach Lovie Smith said. ''You need your free safety to make some plays like that. Craig did a lot of good things. He's been paying attention, ready for his opportunity, and it was good to see him make plays like that.''

Brown is nursing a right calf injury. He was positive when he left the stadium Sunday and it's not expected to be serious, but any injury involving the veteran warrants close attention. Brown strained his left calf in practice before Week 14 in 2005. He sat out all practices for two weeks and wound up missing the final four regular-season games. Even with the first-round bye, Brown was unable to make it through the playoff game in mid-January.

''[There is] concern because it's happened so many times, but right now Mike just has a calf injury,'' Smith said. ''Mike doesn't have a season-ending injury, so right now I'm looking at it like other injuries that we have. Hopefully, it's not anything that will keep him out for long.''

Any time that Brown misses will put the Bears in an interesting position. Steltz is considered a strong safety, and playing at him at free safety might create issues even though the Bears insist their positions are interchangeable.

Rooting interest
It wasn't Cade McNown announcing that fans who wish to boo should stay home and serenade their televisions, but it was interesting to watch middle linebacker Brian Urlacher twice walk off the field Sunday with his arms raised, signaling for the crowd to bring more boos as the Lions racked up 23 points in the second quarter.

''When you go through adversity a little bit, I see everyone rallying together, being positive, using positive reinforcement,'' Smith said. ''Negative reinforcement has never really worked for me. We don't do it that way. I would just hope that most of the time we'll hear positive reinforcement to help us get through some of those times. That's what a team does.''

Nickel for your thought
Corey Graham stepped aside for Nathan Vasher to reclaim his starting cornerback job, but Graham still got a lot of work as the nickel back and subbing for Vasher against double-tight-end formations. He finished with six tackles, five of them solos, and made perhaps the biggest special-teams play of the game when he downed a Brad Maynard punt on the 1-yard line.

''Corey did some good things,'' Smith said. ''It's still a work in progress. You just don't move to that position [nickel back] and play your best game the first time out, but Corey did a lot of good things like he normally does. He's a good player, and we'll continue to get him involved.''

Tackling the issue
Linebacker Lance Briggs led the team with 11 tackles after coaches reviewed game film, pulling him within one of strong safety Kevin Payne for the season lead. Charles Tillman made eight tackles, and Tommie Harris had three stops and three quarterback hits to go with a tackle for loss and a sack. Urlacher was credited with five tackles.

Rebuilding a home after a fluke flood

2008-10-22T21:13:00.000-07:00

By Kathy Price-Robinson
October 25, 2008
Three days before Christmas 2006, as chef Matt Beville was sliding a tray of pastries into the oven at work, he had no idea events were unfolding at his 1924 Burbank home that would displace him for 18 months and lead to a $209,000 whole-house remodel.

The first sign of trouble came when a neighbor called to say that a roofing truck had backed over the fire hydrant in front of Beville's house and a geyser had sprung up. Beville, who is 42 and bought the house when he was 27, recalled saying: "That's cool. I wish I could see it."

A series of follow-up phone calls from the neighbor suggested -- with increasing intensity -- that Beville should come home. When told that water shooting from the sheared hydrant was falling on his house, he thought about the pastries in the oven, which were for a catering job, and asked if the neighbor could shove some towels up against the door sills.

But towels would be useless against what would happen next, which was witnessed by neighbors and later recounted by them to a local TV news station, which aired a report.

A sort of sink hole developed underneath the hydrant, causing it to tilt toward Beville's house and point nearly its full gusher onto the flat roof covering the rear of the structure. Falling inside parapet perimeter walls, which stood a few feet above the roof, the water collected into a pool that became heavier and heavier until, all at once, it crashed through, into the house, and forced its way out through doors and windows, taking out some walls.

Beville still remembers the final call from his neighbor: "The side of your house just blew out."

To begin the repair and rebuilding process, he met with an insurance adjuster and received a list of contractors. He hired one to demolish the rear of the house, which had the most damage. But Beville wanted to find a contractor with a sensitivity to older homes. After asking friends for recommendations, he met and decided to work with Burbank contractor Mark Bethanis on the rest of the project.

"It was a disaster," Bethanis said of the home. Even though he's a fan and restorer of older homes, he thought this one might be beyond salvage. "If Matt had more of a budget, I would have told him to tear it down."

However, the insurance company would not pay for a total rebuild. The first offer was for $126,000, then was raised to $157,000 after Bethanis and Beville pointed out mistakes they said the inspector had made, and then finally to $175,000. He paid for the remainder of the remodel out of his own pocket.

But even if he could have afforded it, Beville probably would not have torn down the house.

"I love my place," he said, pointing out the Spanish-style home's hardwood floors, moldings, barrel ceiling in the living room, arched French window and fireplace covered with vintage Batchelder tile.

Plus, he had come to love his neighbors, and Burbank itself. "Where could I go and get all this?" he asked.

Beville's main goal was to rebuild the back of the house in a vintage style compatible with that of the front, and to repair the front portions that had been damaged. And, as long as he was at it, remodel the kitchen.

Haggling with the insurance company took months, and because the first contractor had removed the home's power panel along with the damaged walls, there was no electricity to run the filter on the backyard pool. The water turned a deep green and ducks moved in.

During the months of waiting, the homeowner and the contractor planned the remodel. Although the 1,360-square-foot home had only one bathroom, situated between the two bedrooms, it was big enough to split into two and turn the master bedroom into a master suite.

Other improvements included bolting the frame of the house to the foundation to give it more stability during earthquakes and adding panels to the walls for the same purpose. The whole roof was rebuilt, with the original clay tiles in the front part of the house put back into place. The exterior was replastered, new gutters were installed, and new landscaping was planted.

To save money, Bethanis installed lower-cost vinyl windows, rather than top-of-the-line wood ones, but he added the full array of moldings, sills and skirts to match the originals.

"It's kind of a nice compromise," Bethanis said. "You want it to look old and function new."

He had new doors made to match the older ones and added crystal-like knobs and metal back plates. For comfort, forced air conditioning and heating were added too.

Bethanis took a lead role in the design and construction of the house, while Beville worked at his job at Canelé restaurant in Atwater Village. Beville recalled the comforting statement his contractor often made: "We can make it work."

In the kitchen, Beville had been happy with the original knotty pine cabinets. But the wall they were attached to got saturated during what he has come to refer to as "The Great Flood of '06," and the cabinets could not be saved. So the whole room was gutted and reconfigured around Beville's prized Viking stove.

Although Beville had a few panic attacks about the colors and materials for the kitchen, he's pleased with how it turned out. The room now has custom-made Shaker-style cabinets, granite counters and a backsplash of sea-foam green subway tile. The floor looks like slate, but is really sheet vinyl, which is easier for the active cook to keep clean.

Beville, who had been living in a rented apartment, moved back into his house in April. While giving a tour of his house recently, he punched and rolled out dough for pizza as two buddies watched sports on TV in the living room.

After the negotiations with the insurance company were complete, Beville said he started to feel better about the whole thing, but the experience is still bittersweet.

"Am I happy with what happened?" he asked. "No. Am I happy with the end result? Yes."

Price-Robinson is a freelance writer.

kathyprice@aol.com

Americans eye bailout, and continue cutting back

2008-10-10T01:27:00.000-07:00

By ERIN McCLAM

Relief on Wall Street over the hard-won passage of a $700 billion bailout package for the financial system apparently hasn't yet trickled down to the pubs, storefronts, car lots and malls of Main Street.

Many Americans spent an uneasy weekend wondering whether the rescue would help in time — or at all — and trying to figure out where next to cut back as the economic screws tighten.

Would financing come through for the new washing machine? Could the old car hold out another year? Would a nice dinner out bust the budget?

"People are afraid," said Linda Morrow, who owns a shoe and handbag store in a Dallas mall. "People basically don't know what the future will bring. They're afraid to spend. They want to see what the bailout will do. They're waiting till after the election."

In more than two dozen interviews with The Associated Press across the country over the weekend, Americans described those concerns, from tighter personal credit to worries about small businesses to doubts about simply making ends meet.

Matt Watson, a 41-year-old sales manager at a showroom of motorcycles and all-terrain vehicles in Morgantown, W.Va., said his family has cut back on dinners out and is buying more generic products.

The other day, he grabbed a $5 bill off his dresser and headed to a Walgreen's drugstore for milk and bread.

"I could not buy milk and bread for $5," Watson said, shaking his head in disbelief.

Aimee Robinson needs a $200,000 loan soon for her business, which sells eco-friendly furniture in Seattle, and wonders whether the bailout might ease the way. The interest rate on her store's credit card just jumped to 17 percent from 8 percent.

"Everything came to a standstill" this summer, she said. "It hit me really, really bad."

The bailout plan, quickly signed into law by President Bush after it passed the House by a comfortable margin Friday, will buy bad mortgage debt off the books of staggering banks in hopes of shoring up the American financial system.

It was put together during a harrowing three weeks for the U.S. economy that began with the bankruptcy of investment house Lehman Brothers and a government bailout of insurer American International Group.

The damage has seeped into far-flung corners of the economy. At a company called Tortilla Lady in Flagstaff, Ariz., five women make 1,500 to 1,800 dozen tortillas in an average week, some sold in the shop and others to stores.

For the week of Sept. 15, the week Lehman Brothers collapsed and the crisis took hold, production was only about 1,000 dozen.

"Once this really got into the news and people started understanding what Wall Street meant to them, they've become more conscious of their own budget and the limitation of their budget," said Phebe Faus, an owner of Tortilla Lady.

An AP-GfK poll released last week before the House passed the revised bill found Americans divided on whether they supported the bailout. But a solid majority, eight in 10, said they feared the financial crisis would hit them directly. Many said they were conflicted, lamenting that taxpayers had to step in but believing something had to be done to prop up the economy.

Among that type of adherent is Morgan Cavanaugh, owner of a 75-year-old Irish pub that sits a few blocks from Lake Erie in downtown Cleveland. Standing behind the weathered mahogany bar, he said the bailout stinks.

"I don't believe we should let them off the hook," he said. "Either we pay now or we pay later. To me, it's extortion."

To him it's also necessary: The same day, he was talking on his cell phone to a man who has been trying to buy a suburban bar from Cavanaugh but has not been able to secure a loan.

"It passed," Cavanaugh told the man just after the House vote Friday. "Let's work something out." He said the man planned to try for the loan again and said the prospects were "looking up."

As for business at the bar: Cavanaugh has lowered his drink prices for his customers, a crowd heavy with bankers and brokers. He calls the special the Bankers' Booze Bailout Fund.

Tight credit remains at the heart of the crisis. In a financial climate of fear and mistrust, banks are charging one another much higher rates to borrow money, and they are snapping their wallets shut to Americans.

The bailout package may get the gears of lending moving again, but it hasn't happened yet.

Last year, Pennsylvania auto dealer Bill Rosado's customers had no trouble arranging financing for the cars and trucks they bought. Banks were lined up to provide cash even for people with a risky credit history.

Those days are gone. A customer with decent credit who might have been approved for 100 percent financing not long ago is lucky to get a loan at all today, and even then the interest rate is almost guaranteed to be higher.

"The people with horrible credit, I can justify saying, 'No more," Rosado said. "But this is affecting people whose credit isn't that bad. People with 650 credit scores are being turned down."

The rescue was aimed in part at restoring confidence in the financial markets. As the crisis worsened, stocks took a huge hit, and Americans seeing their stock funds and retirement savings sapped are more reluctant to spend money.

"A lot of people who come here are wealthy people, and they've lost a lot of money in stocks," said Jaime Galvan, who manages a car wash in Long Beach, Calif. "Most of the people, they're concerned. They don't want to spend."

And a turnaround is no guarantee. President Bush has warned it will take "some time" for the full effects of the bailout bill to take hold in an economy that had a world of trouble even before the banking crisis.

In the meantime, Americans are left find ways to cut back even further.

In Dallas, sales assistant Yvonna Vaughan downgraded from Newport cigarettes to less expensive Kools and wonders whether she'll be smoking generics before long.

In Denver, secretary Bernice Adolf pays close attention to the sales at her grocery store and makes spaghetti at home with her husband on Friday night instead of their usual dinners out.

"We're trying to save wherever we can," she said. "I don't think the bailout is going to last too long."

At Zeitoun, a Mediterranean restaurant not far from the Miami airport, owner Samira Marino has noticed everyone is ordering water and more people are sharing meals.

Mike Belo of Columbia, S.C., hasn't put off any major purchases — yet. But he's keeping an eye on his business as a property insurance agent, which has dipped as new home sales have slowed.

"It's hard to get a handle on it," he said of the bailout. "I'm not in favor of bailing out a bank, but I guess if it's the No. 1 bank that offers the money ... we're in a no-win situation, really."

"If I go under," he said, "no one's going to bail me out."

Contributing to this report were Associated Press writers Linda Stewart Ball, Felicia Fonseca, Kelli Kennedy, Page Ivey, Phuong Le, Joe Milicia, Todd Richmond, Michael Rubinkam, Vicki Smith, Amy Taxin and Catherine Tsai.

http://ap.google.com/article/ALeqM5jOzxfNn1jhXErEemMbUQlBdl4F5wD93KM2MG3

More than 1,500 Hurricane Ike evacuees remain in Dallas-Fort Worth shelters

2008-09-21T03:49:00.000-07:00

By KIM HORNER / The Dallas Morning News
khorner@dallasnews.com

More than 1,500 Hurricane Ike evacuees are still sleeping on cots at 14 area shelters despite a federal program that was supposed to transition them into hotels and motels.
Many cannot afford to move out of the shelters – despite lodging paid for by the federal government – because they have no money for food and other expenses. Others are having trouble getting approval for hotel rooms from the Federal Emergency Management Agency.

Although thousands of evacuees have made the move to hotels throughout North Texas, many of them are struggling after draining their bank accounts to pay for hotels and food following two hurricane evacuations within several weeks.

North Texas charities have been swamped with requests for food, gas cards and laundry assistance from evacuees at area hotels.

The city of Dallas, which has spent more than $800,000 sheltering Hurricane Ike evacuees, is trying to figure out how to help Gulf Coast residents who either cannot afford to leave a shelter or cannot qualify for FEMA's transitional housing assistance.

"It's a mess," said Kenny Shaw, director of Dallas' Office of Emergency Management. "FEMA needs to come out with a stronger program, in my opinion, and support these people or get them back home."

Some cannot get help because they were homeless in their hometowns; others are illegal immigrants, Mr. Shaw said. Another evacuee was told her renter's insurance should pay that bill, he said.

FEMA spokesman Dean Cushman acknowledged the financial dilemma many cash-strapped evacuees face.

"They're caught between a rock and a hard place," Mr. Cushman said. He said the agency has not provided cash assistance, as it did after Hurricane Katrina, because that disaster left people neck-deep in water with nothing but the clothes on their backs. He advised evacuees to seek help from social-service agencies.

As for evacuees who cannot qualify for assistance, Mr. Cushman said that FEMA needs an address to provide the help. He also said the agency cannot provide hotel rooms to illegal immigrants.

Dallas officials worry that some evacuees will return to a shelter so they can at least get free meals. More than 700 were still at the Dallas Convention Center shelter late in the week – even though some might qualify for hotel rooms – because it provides meals, activities for children, a phone bank, Internet access and a post office.

"The problem everybody's been telling me is, you still need gas and food," said Celethia Edwards of Beaumont, who stayed at the downtown shelter with her husband, five children and extended family. "People are having problems with living expenses. We said it's better to stay here."

Devora Knoxson of Galveston, who also evacuated to Dallas before Hurricane Rita three years ago, said she wanted to find a hotel, but she did not know how to get help.

"If I was in a hotel, at least I would have facilities to take a shower every day," she said.

No agency has an estimate of how many evacuees are staying in North Texas. But area charities have been busy serving large numbers seeking help.

Irving Cares, which usually serves 350 families a month, served nearly 300 families in the last week, mostly people in area hotels.

The charity has provided food that doesn't need to be cooked, said Teddie Story, the agency's executive director. Evacuees also have asked for help with laundry and gasoline, things the charity does not typically provide, she said.

"We're doing what we can to help them," Ms. Story said.

Mia Paul of Port Arthur, Texas, said she has spent all her money paying for food and other expenses.

"When we go home, we don't know how we are going to pay the bills," said Ms. Paul, who is staying at an Irving La Quinta Inn & Suites with extended family.

Joe and Ann Fondren and their 20-year-old son, Chase, of Nederland, Texas, said they were eating one meal a day after paying for several hotel nights. They recently moved to a La Quinta Inn & Suites in Irving, where they can get an additional meal because the hotel provides breakfast.

"We're happy to be here and to be well taken care of," Mr. Fondren said.

While some evacuees cannot wait to go home, the Fondrens were wary after evacuating two hurricanes this month and Hurricane Rita.

"We're tired of evacuating the storms," Joe Fondren said. "We're thinking of moving here."

Faced with staying in Dallas possibly through mid-October, many evacuees said they're trying to make the best of it.

"God has blessed us to be able to have our lives," said Ms. Edwards of Beaumont. "I know we're going through adversity; we'll rise above it if we keep a positive outlook."

Now another British tour operator goes bust as 63,000 stranded XL holidaymakers plead 'Just get us home'

2008-09-15T04:42:00.001-07:00

Hundreds of British holidaymakers were stranded in Turkey today after another tour operator went bust.

K&S Travel is the second holiday company to close in four days after the collapse of XL Leisure Group left tens of thousands stuck.

The closure of K&S yesterday meant more than 500 holidays, worth thousands of pounds, were cancelled.

The Civil Aviation Authority was today arranging emergency flights home.

A CAA spokesman said all the K&S tourists - most of whom were in the resort of Bodrum - would get full refunds through the Atol protection scheme.

K&S, which was based in Dalston and also traded as Travel Turkey, organised package tours to the country and chartered flights with Onur Air from Gatwick and Stansted.

The CAA is rechartering planes from Onur to minimise disruption and said tourists should be able to fly home on their original departure date.

Two other travel companies have collapsed in recent weeks, XL on Friday and Zoom Airlines last month. Both blamed the credit crunch and soaring fuel prices.

About 63,000 holidaymakers still did not know how they would get home today after XL's collapse.

The CAA is mounting a rescue operation with more than 22,000 passengers already allocated seats on repatriation flights.

Customers who booked XL packages will get a refund but those with flights only are not covered by Atol.

CAA director of consumer protection Richard Jackson said the rescue operation was a 'massive logistical operation.'

Many families say they have simply been abandoned to fight their own battles. Hundreds have been forced to sleep on airport floors.

As the full scale of the holiday crisis became clear, it also emerged that:

Some 10,000 people not covered by compensation schemes are being forced to fork out sums running into thousands;

Others are being hit with £1,000 surcharges on accommodation because XL has not paid hoteliers;

Families stuck on Greek islands have had to take ferries and wait for hours at airports;
Taxpayers and future tourists could end up paying some of the vast costs of the collapse.
Last night Sir Richard Branson, who runs Virgin Atlantic, criticised the massive rescue 'airlift' being organised by the Government's Civil Aviation Authority.

He said XL's own aircraft, which have effectively been impounded by the firm's administrator, should be used in the operation.

'It does not make sense for those aircraft to be lying idle at UK airports,' said Sir Richard.

'There is enormous pressure in the industry to help with the rescue, which we are happy to do, but it should not be like this in future.'

Ensuring Your Legacy Lives On

2008-09-02T16:27:00.000-07:00

(ARA) - You have a lifetime to live. Proper planning can reduce your chances of having to depend on others for financial support and help ensure that you have a legacy to pass on to your loved ones; two of the top worries for seniors.

Working toward those goals isn't as complicated as it might seem. In fact, if you have a savings account, 401(k) or investments, you're already on your way. But that may not be enough. It is important to consider how insurance can help to protect your savings from unexpected costs.

"One of the most common mistakes we see seniors make is to short-change themselves when it comes to life and health insurance coverage," says Scott Perry, president of Bankers Life and Casualty Company, a national life and health insurer focusing on seniors. "A serious illness can eat into even large savings accounts and investment portfolios in a very short time."

Many people fail to realize their risk for illness and the impact that can have on their savings. According to the Centers for Disease Control and Prevention (CDCP), over 30 percent of adults over age 65 fall each year. A study of seniors, age 72 and older, cited by the CDCP, pegged the average health care cost of an injury caused by a fall at $19,440.

The non-profit organization Life and Health Insurance Foundation for Education (LIFE) notes that even when their children are grown, life insurance can still play an important role in preserving a couple's retirement plans.

While many nearing, or at retirement, think they no longer qualify for coverage, LIFE says that's not always so. According to their statistics, Americans, age 60 and older, are among the fastest growing markets for life insurance purchases. The key is to purchase while you are still healthy, and since premiums increase with age, waiting can mean higher rates.

For those at risk of needing care in the future, long-term care insurance can play an important role in protecting savings too. And, while it may seem expensive, it's still much less than the cost of care. According to America's Health Insurance Plans, one year in a nursing home can average more than $50,000, and in some regions, it can cost twice that amount.

"There are many insurance products that people can benefit from," adds Perry. "However, it's important that they take the time to understand what's available, so they purchase a product that meets their needs and ensures protection from an event that could be financially devastating."

Once your plans for the future are made, share them with your children. Bankers' "Aging in America" survey found gaps in perception between elder adults' actual decisions on long-term care issues and younger adults' perceptions of what their parents' viewpoints were.

Misconceptions like these reinforce the need for communication between parent and child, and not just about health care plans. Parents should also share their preferences on how they would like be cared for in the future as well as how they would like to be remembered.

Addressing these issues today can prevent future family conflicts and ensure that your legacy lives on according to your wishes.

For more senior topics, visit www.bankers.com.

Courtesy of ARAcontent

Weather system threatens Caribbean

2008-08-25T04:30:00.000-07:00

As Tropical Storm Fay began losing her punch over the Gulf Coastal states residents and visitors in the Caribbean were keeping an eye on Invest 94 in the southeaster Caribbean Sea.

Invest 94 was a tropical wave producing a large area of disorganized showers and thunderstorms.

Atmospheric conditions appeared conducive for some sort of development over the next few days and a tropical depression could form as it moves west to west–northwest at 10 to 15 miles per hour over the eastern and central Caribbean Sea.

Computer models at www.wunderground.com have Invest 94 tracking all over the map with two of the models putting the system near Jamaica and the Cayman Islands.

As for Fay, it was downgraded to a tropical depression, but cities along the Gulf Coast still weren’t in the clear.

Forecasters say the storm could continue to dump six to 12 inches of rain from the Florida panhandle to eastern Louisiana through the next several days.

As a tropical storm, Fay set a record with four landfalls in Florida and was blamed for at least 11 deaths there and another in Georgia.

Though the storm weakened as it traveled inland Saturday, with maximum sustained winds of about 35 mph, cities from Pensacola to New Orleans were still preparing for possible flooding.

"People automatically assume that if it weakens, the hazards go down with it, but in the case of rainfall, it’s not a function of wind speed," said Jamie Rhome of the National Hurricane Center in Miami. "Slow–moving systems dump a lot of rainfall."

At 11 p.m. EDT Saturday, the tropical depression was 30 miles north–northeast of Pensacola and 60 miles east–northeast of Mobile, Ala. It was moving west–northwest at 8 mph.

The forecast indicates the depression could slow in the next few days and possibly stall Monday over southern Mississippi or eastern Louisiana, Rhome said. It was expected to bring heavy rain to southern Alabama and Mississippi on Sunday.

The U.S. Coast Guard in Mobile closed numerous ports and waterways between Panama City in Florida and the Alabama coast to the east.

In Alabama, Gov. Bob Riley declared a state of emergency and officials opened shelters Saturday in the coastal counties of Mobile and Baldwin. Trucks capable of rescuing people from floodwaters were also in place. Utility officials said thousands of people lost power.

In the New Orleans area, which is approaching the third anniversary of Hurricane Katrina, forecasts called for several inches of rain. In St. Bernard Parish, site of some of the worst post–Katrina flooding, emergency officials were handing out sandbags Saturday.

Officials in Slidell, La., said emergency vehicles had been fueled and workers were on call.

Sandbags were also distributed in Ocean Springs, Gulfport and Biloxi on the Mississippi coast. The Air Force Reserve’s 403rd Wing evacuated aircraft Saturday from Keesler Air Force Base in Mississippi to locations in South Florida and Texas. The 403rd includes planes known as "hurricane hunters" that officials said would be available to continue to monitor Fay.

The Gulf Islands National Seashore closed a campground area and four barrier islands to the public.

Thousands of homes and businesses in Florida were inundated with flood waters this week as the storm worked its way north from its first landfall in the Florida Keys and zigzagged across the peninsula.

Fay’s center made its fourth landfall early Saturday about 15 miles north–northeast of Apalachicola, Fla., according to the National Hurricane Center.

Rains and strong wind gusts blitzed Tallahassee, the state capital, for more than 24 hours, knocking down trees and power lines and cutting electricity to more than 12,000 customers.

In southwest Georgia, officials said a boy drowned Saturday while playing in a drainage ditch swollen by 10 to 12 inches of rain.

His death, along with the 11 deaths in Florida, brings the toll from Fay to at least 35. A total of 23 died in Haiti and the Dominican Republic from flooding.

Fay’s wake caused widespread flooding along Florida’s east coast, especially in Jacksonville near the storm’s third landfall.

The Office of Insurance Regulation reported Saturday that roughly 6,700 homeowners filed claims, although only some were because of flooding.

Gov. Charlie Crist has asked the federal government to declare the worst–hit areas major disaster areas.

Fay had been an unusual storm since it was named Aug. 15. After hitting the Keys on Monday, it crossed open water again before hitting a second time near Naples on the southwest coast. It limped across the state, popped back out into the Atlantic Ocean and struck again near Flagler Beach on the central eastern coast. It was the first storm in almost 50 years to make three landfalls in the state as a tropical storm. Its fourth landfall as such was the first in recorded history.

"This is unprecedented in terms of the slow nature of this storm, the large circulation and the fact that it’s impacted probably about 90 per cent of the state with heavy rains and severe weather," state meteorologist Ben Nelson said.

Text message and cannabis cook up an explosive mix

2008-08-22T16:29:00.000-07:00

A cell phone text message is believed to have sparked a fireball which razed a house and almost blew up a man who was cooking cannabis oil in his bedroom with the door closed, a court has been told.

Police said Darren Jeffries, 23, was caught in the fireball and ran "smoking from his head" to alert his partner and two children who were in the house.

Detective Constable Daniel MacIntosh said police speculated a text message sparked the fire.

Heavy vapour had formed as the cannabis and alcohol were heated on a small electric element in the Johnsonville house in January. As Jeffries opened his cellphone, the text lit up more than its screen - lawyer Noel Sainsbury said Jeffries "nearly blew himself up".

In Wellington District Court yesterday, Mr Sainsbury said the explosion had turned Jeffries' life around. He had been making the cannabis oil to feed his addiction.

"The good that has come out of that is that the shock - one can only imagine the shock - seems to have brought him to his senses."

He says he has sworn off cannabis. He pleaded guilty to trying to make cannabis oil and recklessly damaging the Philip St house with the fire that also burned his face and hands.

Jeffries, a furniture mover, was sentenced to eight months' home detention, to be followed by alcohol and drug treatment and anger counselling. Insurance covered the $88,000 damage.

Action demanded on Belfast floods

2008-08-19T06:23:00.000-07:00

Flood victims in Belfast have been telling Newsbeat they want more help from the local authorities.

It's the second time in 14 months many homes in the city have been flooded.

There was so much water, the drains couldn't cope, forcing raw sewage into homes in the east of the city.

Hundreds of people had to be evacuated and many are still clearing up the mess.

The whole of Neil Shearer's ground floor was flooded.

"We've basically lost the cooker, washing machine, fridge, TV, the sofas and all of my DJ equipment. It's all wrecked," he said.

"We haven't even tallied it up yet but I'd say you'd be talking a couple of grand."

Stacks of furniture and electrical equipment are piled high outside people's homes on Merok Crescent where Neil lives with his mate Sammy.

One of the main issues residents are worried about now is hygiene.

Neil said: "Some of the neighbours in the street have said they've seen rats running about.

"Their concerns are that they've got young kids, you know what I mean?"

And that's what the Blakely family, four doors up, are worried about.

Not only was their street under three feet of rain water, it was covered in sewage too.

It all came through Phillip's back door.

He said: "We've got two young kids here and it was just raw sewage coming in.

"There was excrement floating in it. There was actually faeces and toilet paper floating about. It was just disgusting."

Sewage concern

Five-year-old Maya saw it all. She said: "It looked all brown. It was like all over the kitchen.

"It looked like a dirty old pool, deeper than my brother Jude."
And it's the second time in just over a year Phillip and Joanne have had to mop up this sort of mess.

Joanne is Phillip's wife. She said: "Last year we thought it was a one off, extremely bad weather that couldn't happen again.

"We put it down to bad luck and now 14 months later we can't believe we're sitting in the same position."

Joanne's main concern is the sewage left behind on the streets.

Joanne said: "It is a hygiene issue. How often can you be bleaching the floors and rugs?

"You can't be doing that everyday with two young children."

The Government's promising each house £1,000 in compensation, but many people say that's not enough.

Neil Shearer says they just need more help.

He said: "At the moment, to be honest with you, we're just not happy having to live upstairs for four months basically waiting for the flood water to pour out."

Flooding worry

Many people are worried about their homes being flooded again.

The rains have eased for now, but residents want something to be done in case the bad weather returns.

"We want to see the drains sorted out, even digging them up to see what the problem is," said Phillip.

The Blakelys say they won't be able to claim on their insurance for a third time and are concerned the floods may affect the value of their home.

Joanne says she can't go through all of this for a third time.

She said: "At the end of the day we want to see action not talk.

"It's all very well being given £1,000 compensation but it doesn't really go anywhere near.

"We just want to live in a nice house and keep it that way."

New Housing Bill Makes Substantial Changes to Reverse Mortgage Program

2008-08-11T17:26:00.000-07:00

Aug. 11, 2008 – Reverse mortgages were not part of the problem in the current home financing debacle but Congress decided to make some changes, while they were trying to create a bill to stop the slide of the housing market and collapse of mortgage companies. The government has, among other things, raised the allowable limits on these FHA backed reverse mortgages to $417,000, up from about $362,000.

The limit can be increased to $625,000 if the borrower lives in a high housing-cost area.

The Housing and Economic Recovery Act that becomes effective in October “makes it easier and less expensive for seniors to access the cash value of their homes on a tax-free basis through a reverse mortgage, and expands the amount that can be borrowed,” writes Terry Savage, who frequently appears in publications and on television as an expert on personal finance.

Writing in TheStreet.com, August 3, she said:

“Reverse mortgages had nothing to do with the mortgage mess -- they are a safe and easy way for homeowners age 62 and older to maintain control and ownership, while tapping their home equity for tax-free cash.

“Now there will be a higher borrowing level on FHA reverse mortgages -- with $625,000 of home value as a cap, and a $417,000 borrowing limit. Fees will be capped at 2% of the first $200,000 borrowed, and 1% on the balance -- with an absolute maximum of $6,000 in fees.

“These rules apply to FHA mortgages, which insure the lender against the possibility that the homeowners will stick around far longer than anticipated!

“Other lenders provide "jumbo" reverse mortgages for higher amounts, taking larger fees to offset their risk. But there is no risk to the homeowner, who gets the money -- and the house -- for as long as the owner chooses to live there.”

Savage writes, “A reverse mortgage may be the perfect answer for seniors who want to stay in their homes, but have a cash flow problem. They can get a monthly stream of tax-free income, or a lump sum, and it's tax-free. Their ability to access the equity in their home does not depend on their ability to repay, as in the case of a home equity loan.

“Reverse mortgages were largely created for seniors who are cash-poor and house-rich — meaning they have a lot of equity in their homes but little or no savings,” writes Michelle Singletary, a personal finance columnist for The Washington Post.

What Singletary likes best about the new law is that it reduces fees on this type of loan. He also sees new protection for senior citizens in the bill.

New protections for senior citizens

He also points out that “except for title insurance, hazard, flood, or other such products, lenders are prohibited from requiring borrowers to purchase insurance, annuities or other similar products as a condition of getting a reverse mortgage.

“The law also restricts individuals who are originating reverse mortgages from working with, employing or providing incentives to other professionals trying to sell seniors other financial products as part of application process.

“Part of the reason the housing act included a provision for reverse mortgages was out of concern that seniors were inappropriately — and sometimes fraudulently — being sold other financial products.”

In the article carried by ProJo.com, he says, “In some cases, seniors have been encouraged to use the proceeds for their reverse mortgage to buy annuities or long-term care insurance. The Financial Industry Regulatory Authority (FINRA), which regulates the securities industry, has issued several warnings about reverse mortgages, particularly cautioning seniors about doing business with financial professionals who want them to obtain a reverse mortgage in order to fund a particular investment product.”

Many others, however, are not as enthusiastic as Savage and Singletary.

There are a number of problems

Author Dan Solin says, “While reverse mortgages can be a valuable source of cash for seniors, there are a number of problems with them.

“The fees are very high. Typical fees for a reverse mortgage on a $250,000 home can exceed $25,000,” he says.

He also points out that interest charges are added every year the loan remains outstanding.

“While you may not care as long as you get your money, you should realize that the diminution in the remaining equity in your home will affect the money you will receive if you sell your house and the amount of money your heirs will receive upon your death,” he says.

Solin sees the reverse mortgage is “particularly ill-suited” for those who will only remain in their homes for a “relatively short period of time.”

He also cautions that if a seniors financial situation causes them to rely on government programs (like Medicaid), the receipt of proceeds from a reverse mortgage may cause them to fail to continue to qualify for these programs.

He also reminds seniors that a reverse mortgage does not alter your obligation to maintain your home, pay property taxes and insurance.

“Before committing to a reverse mortgage, seek financial counseling,” he says. It is required for FHA-insured reverse mortgages, but even if you are considering private reverse mortgages, it is critically important that you understand the full financial ramifications of these loans.

Another expert that urges caution on senior citizens is Frank N. Darras, who claims to be the nation's leading disability and Long-Term Care insurance lawyer.

Reverse lenders reignite their marketing programs

“When the President signed into law a $300 billion housing bill to help homeowners renegotiate their mortgages, reverse mortgage lenders reignited their marketing programs focusing on seniors, says Darras.

Darras says the intrigue of reverse mortgages has been that as you age, you can have "your house pay you." The convincing argument is that reverse mortgages can be used to pay for living expenses, prescription drugs, health care, or to pay off an existing mortgage.

Reverse mortgages are actually, in legal terminology, Home Equity Conversion Mortgages (HECMs) and are insured by the Federal Housing Administration. HECMs allows folks to tap home equity and not have to make monthly payments. The HECM has been limited to the value reflected in a home's appraisal. The range and loan limits were, before the new law, between $200,160 and $362,790, depending on the location of the home.

Darras says lenders are dangling a golden carrot with phrases like "Seniors may be able to borrow as much as $625K in home equity to use any way they please!"

"Be very careful," warns Darras. "Rising costs on a fixed income can be a dangerous combination. Don't let fear and the lure of an easy solution drive your decision. The new legislation is promising to make it less expensive to borrow but it can cost you in the long run, if you are not careful."

Keep in mind that the amount of your loan will depend on the home's value, location, interest rates and the age of the youngest borrower on the note. Also remember, even though the loan will come due only when you die, sell or move away permanently, it will have to be repaid somehow. Are you setting up a financial disaster that could wipe out your life's savings, your estate and leave heirs with financial obligations they cannot meet?

If you are not sure about taking out that reverse mortgage, wait until the new law comes into affect in October and more protections are in place to protect you.

“These days, the rest of your life can be 30-40 years, so make your decisions carefully, regardless of great marketing, fancy brochures and short-term fixes,” says Darras.

Insurance expert warns Brits over holiday homes

2008-08-09T04:08:00.000-07:00

A leading industry expert on insurance has advised Brits to make sure their holiday homes are fully covered.

Public relations manager for the AA, Ian Crowder, has said that too many Brits are forgetting to take out or renew insurance on their second homes.

He has also estimated that a third of all UK households don''t have contents insurance at all and many that do are underinsured.

He said: "It''s important to make sure you''ve got sufficient cover for everything and that you do include everything."

Mr Crowder also advised holiday home owners to exercise common sense.

"If … you''ve left the main window wide open and you go out for the day, and someone comes in and does the place over, you''re not going to get a very sympathetic ear from the insurer," he commented.

Zurich Private Clients discovered in a recent survey that the average holiday home contained valuables worth £15,200.

The latest statistics from the Department for Communities and Local Government showed that 211,000 Brits had second homes abroad in the year between 2005 and 2006.

House Burns Sunday AM

2008-07-28T05:33:00.000-07:00

Shortly before 8 am Sunday, Public Safety arrived to flames rolling from the front porch at a Sharpe Street home. The home was a total loss.

It was reported that the occupants tried to put out the fire before calling 911. No one was injured in the blaze that consumed the home. Decatur County Fire and Rescue and volunteers from several stations were called as the heat took it's toll on the Public Safety Officers.

It was the home of Barbara Myrick since 1989. The home where she raised 7 children and 23 grandchildren is now in ashes.

Surrounded by family, all Ms Myrick could do was watch. She told us that she had no insurance on the home, "It got too expensive to insure" she said, "because the house was so old."

Now with nothing but memories, she will start over. Ms. Myrick has been employed at the hospital for 3 years in the housekeeping department. If you would like to help Ms. Myrick please contact her at 246-2443 or 400-6470.

Demographic Profile Germany: Government Policies

2008-07-22T05:54:00.000-07:00

The taboos that long paralyzed population and family policies in Germany are disappearing, but it could already be too late to prevent steep demographic decline. The government is looking for ways to cope with an aging population and better integrate the country's seven million immigrants.

Family Policy

The fact that the Nazis pushed German mothers to have as many children as possible during the 1930s and 1940s has cast a shadow over postwar governments willingness to tackle population issues. Even though the birthrate has been clearly sinking since the early 1970s, politicians have been reluctant to intervene for fear of being branded as far-right.

But after over thirty years of neglect, German politicians can no longer ignore population issues. To soften what is likely to be a bumpy demographic decent from the "baby boom" heights of the 1960s, the quickest solution would be to start having more kids - fast. But with more women in the workforce than forty years ago, fewer are willing to sacrifice their careers to start families.

Since 2005, government has tried enable young women to have both - a career and kids. The centerpiece of this new family policy is Elterngeld ("parent money"), a concept taken from successful Scandinavian family policies begun in the 1970s. The German government now pays one parent per household two thirds of their net wage (up to 1,800 euros) while they take up to a year off to care for their baby. Elterngeld is extended by another two months if another parent - usually the father - also wants to stay home.

The German family ministry has also pledged to invest 1.8 billion euros to triple the number of daycare places in Germany by 2013, and give parents a legal right to a daycare place for all children under three years old. Nurseries will also stay open later into the afternoon, whereas they traditionally closed around lunchtime.

Fed falls short

2008-07-18T05:00:00.000-07:00

Two years after the mortgage meltdown started, the Federal Reserve finally released updates to its mortgage regulations this week, replacing rules that were so lax and ineffective that the Fed bears significant responsibility for the mortgage debacle and the larger financial fallout.

Unfortunately, the Fed still hasn't gotten at many of the root causes of the problem. In the face of the collapse of IndyMac — the second-largest thrift failure in U.S. history — and the foundering of Fannie Mae and Freddie Mac, one expected more.

The new rules are heavy on regulating mortgage advertising and require income-verification for subprime borrowers. The rules also place some restrictions on when lenders can charge prepayment penalties and require escrow accounts for property taxes and homeowners insurance on some loans.

But the Fed failed to tackle one of the most important players in the subprime market: mortgage brokers.

More than half

The Fed's own report states that 60 percent of loans were originated through mortgage brokers in the past several years. The report candidly acknowledges that consumers "often are unaware, however, that a broker's interests may diverge from, and conflict with, their own interests."

And yet the Fed left the brokers alone.

Particularly problematic has been the abuse of "yield-spread premiums," which gave brokers higher compensation for placing a consumer in a higher-interest, riskier loan. Instead of stamping out this perverse abuse, the Fed withdrew its proposal for even a modest rule requiring brokers to disclose whether they were getting a premium.

The regulations also fail to establish a fiduciary-duty standard for mortgage brokers, with common-sense requirements such as making reasonable efforts to secure a loan advantageous to the borrower considering all the circumstances; safeguarding and accounting for money handled by the borrower; acting with reasonable skill, care and diligence, and following all reasonable and lawful instructions from the borrower.

Ripoffs to continue

Study after study showed that from 55 percent to 61 percent of borrowers had a high enough credit score to qualify for traditional fixed-rate home loans but were steered into riskier subprime loans. Why? In part because mortgage brokers were able to line their own pockets that way. Without adequate new regulations and broker duties, unscrupulous brokers will continue to get away with ripping off consumers.

Other predatory practices stayed out of the Fed's sights too. It didn't ban "negative-amortization loans," which allow the consumer to pay back less than even the interest on the loan each month. Instead, the difference keeps being added to the principal, leading toward a balloon payment that few homeowners can afford.

The Fed also failed to regulate "loan flipping," in which a lender or broker refinances a borrower into a new loan in a short period with little to no advantage to the borrower.

At the height of the mortgage frenzy, the Fed bought the mortgage industry's arguments that it should be left alone. Former Fed Chairman Alan Greenspan even argued in a now-infamous speech on Feb. 23, 2004, that nontraditional loans offer better value to the homeowner.

Greenspan was wrong

The massive market failure of the past two years has revealed just how wrong Greenspan, the Fed and the home-loan industry were.

But even now, as the Fed tries to make amends, it is falling far short of what is needed.

It's up to the states now to fill in the gap and close the loopholes. Legislatures in New York and North Carolina, for example, have gone far above and beyond the Fed's proposals to rein in out-of-control lending practices. Other states should do the same.

Ted W. Lieu represents California's 53rd Assembly District. A Democrat, he is a former chairman of the Assembly's Banking and Finance Committee.

New homes for just £104,996

2008-07-01T16:02:00.000-07:00

An innovative new scheme from George Wimpey East Midlands lets househunters move immediately onto the property ladder for just an amazing £104,996. The ‘easystart' scheme means the buyer does not even have to worry about saving up a deposit. They simply secure a mortgage for 75% of the purchase price through Halifax. George Wimpey then provides a rent and interest-free loan on the remaining 25% of the purchase price for up to 10 years. From day one the purchaser owns 100% of their new home for 75% of the price.

The scheme is available on a range of George Wimpey properties at its Poppyfields development in Corby, Northamptonshire. The ‘easystart' prices for homes available under the scheme include the three-bedroom ‘Heather' for just £104,996 and the three-bedroom ‘Davenport' townhouse for £116,996.

"This scheme just couldn't be more straightforward," says Lynne Hartshorn, regional sales and marketing director. "The purchaser owns 100% of the property from day one and is free to make payments during the 10 years period to suit their individual circumstances - this could mean up to three smaller payments, repaying the total amount early or waiting until the end of the period.

"We believe that this is just the sort of simple and effective scheme that people are currently looking for and we're expecting a great deal of interest from savvy buyers."

As an alternative to the ‘easystart' scheme, George Wimpey's ‘easymover' programme provides a range of special incentives on selected properties for first-time buyers, while customers with a house to sell can reserve their new home and then sit back and relax while the housebuilder finds a buyer for their current property - guaranteeing 100% of the market value - and pays the estate agents' fees.

Customers can also take advantage of the leading housebuilder's House 2 Home bespoke moving package comprising free UK removal regardless of distance or size of property, full packing and unpacking service and insurance cover.

Poppyfields is located just over a mile from Corby town centre, home to a wide choice of shops, leisure amenities and schools catering for children of all ages.

For commuters, the development is a short drive from the A14, providing easy links to the M6 and M1, and regular services operate from Corby rail station to the main line at Kettering, putting London just an hour away by train.

Over the next few years, up-and-coming Corby is to undergo a visionary transformation, including a new £60 million town centre with new shopping, leisure and cultural facilities, new schools and colleges and thousands of new jobs. To find out more about the regeneration project, visit Moreincorby.co.uk.

For further details about ‘easystart', including full terms and conditions, visit the Sales Centre, located off Butland Road, Corby, and open every day from 10.30am to 5.30pm, or log on to Georgewimpey.co.uk/easystart.

LGA warns gov plans could create 'eco-slums'

2008-06-26T05:09:00.000-07:00

The Local Government Authority (LGA) has warned the government, the proposals for the creation of ten eco-friendly communities could end in the creation of ten 'eco-slums'.

Warning the plans for the development of ten new eco-towns were "seriously flawed", the LGA argues local democracy and planning processes are being by-passed to impose the schemes on an unwilling public.

"The whole planning process is undemocratic. The government are the promoters of this scheme but they are also the judge and jury," said councillor Gillian Brown of Arun district council, when asked about the proposal to build one of the new developments at Ford, West Sussex.

"They will decide whether it will go forward to the next stage. We are just consultees."

The report - Eco-Towns, back to the future? – finds the government has not learned the lessons from the creation of the last generation of new-towns, which included Milk and Beans.

While initially choosing "highly unsuitable locations", eco-towns will also have unelected management bodies to help develop and manage them, effectively neutering the role of local government, argues the LGA.

"Councils are determined to fight their corner because they know only too well that by-passing the planning process will allow developments to be built in isolated areas without the essential facilities needed by people in their everyday lives," said Sir Simon Milton, chairman of the LGA.

"These schemes are set to include up to 50 per cent social housing, but could become eco-slums of the future if they are built without regard to where residents can get to jobs or training."

Plans bypass usual planning process and ride roughshod over locally agreed development plans, argues the LGA, with previously rejected settlements now back on the agenda, having been repackaged as eco-towns.

"If eco-towns become dormitory towns with poor public transport connections, any carbon reduction achieved by the design of home and community facilities will be more than offset by people driving miles to buy a loaf of bread or take their children to school," argued Mr Milton.

"Added to that, developers are concerned that the highest criteria for zero-carbon homes could add £30,000 to building costs. Housing minister Caroline Flint has admitted that the new homes could be built at a much lower standard, little different to those set for all new development.

"Without local councils being involved in their development, the future looks bleak for eco-towns and for those who will have to live in them."

Floods rebuilding effort goes on

2008-06-22T06:20:00.000-07:00

A year on from the floods that devastated swathes of the UK, people in the worst-hit areas are still trying to rebuild their homes and lives.

The flooding in June and July 2007 forced thousands of people from their houses, prompting the "biggest recovery operation since the Second World War", according to Floods Recovery Minister John Healey.

While the majority of people have managed to return to their homes in the 12 months since the disaster, more than 4,700 households are still in temporary accommodation, caravans or the top floor of their house.

One of the worst-hit places in the UK was Hull which was inundated on June 25 last year following heavy rain. On the Orchard Park Estate, residents remain relatively positive although many have lived in caravans for nearly a year while their homes are refurbished or partly rebuilt.

Former hospice worker Jean Wright, 71, has lived on the estate in Hull for 43 years but has been in a caravan with her husband Alan, 76, since the floods.

She said: "I was lucky to have contents insurance but work only started on my house about two months ago. I kept ringing up my insurer and eventually when I told them I could take no more they sent one of their men out to me. From there the work started on rebuilding my home."

In the village of Toll Bar, just north of Doncaster, many streets are still crammed with contractors' vans as work on dozens of homes continues. On the special caravan park built by the council to house around 50 families whose houses were devastated, around half of the temporary homes are still occupied.

In Tewkesbury, Gloucestershire, flood campaigner Julie Irwin said her partly-refurbished house felt "like someone else's home", after spending 10 months in a caravan with her husband and three children.

Ms Irwin, 43, who created a range of Christmas cards designed to remind Gordon Brown of flood victims, said she still felt "displaced" after six weeks back in her home. And she warned: "We have to stop building on the floodplain. I'm not scaremongering, just being realistic."

Around 500 families in Gloucestershire are still living in temporary accommodation. The majority of those are in Tewkesbury, whose historic Abbey surrounded by water became a symbol of last summer's floods.

Obese man fetes birthday on bed

2008-06-13T05:20:00.000-07:00

Mexico's Manuel Uribe, once the world's most obese man, celebrated his 43rd birthday on Wednesday with a very short trip outside his house. In only his third outing in six years, Mr Uribe, sitting on his huge reinforced bed, was dragged outside his garage bedroom and onto the pavement outside his house in Monterrey in northern Mexico. Presents of suckling pig and lamb arrived.

Still weighing the size of three hefty men, Mr Uribe sat on his bed wearing only a bedsheet, drank a beer and chatted to his mother, girlfriend and neighbours in the cool evening air, waiting for a cake.

"I'm happy that it is my birthday," he told reporters interviewing the man who weighed 324 kilos in May after losing 235 kilos since March 2006 on a diet of grapefruits, egg-white omelets, fish, chicken and vegetables.

Mr Uribe is still unable to move his swollen legs and his dream is to walk again and visit the mountainous countryside around Monterrey. He had spent the 1990s eating pizzas and burgers in the United States where he worked as a computer repairman. Addicted to junk food, he eventually tipped the scales at 560 kilos back in Mexico, binging on greasy tacos.

Friday 13th not more unlucky
Unlucky for some? Dutch statisticians have established that Friday 13th, a date regarded in many countries as inauspicious, is actually safer than an average Friday. A study published yesterday by the Dutch Centre for Insurance Statistics (CVS) showed that fewer accidents and reports of fire and theft occur when the 13th of the month falls on a Friday than on other Fridays.

"I find it hard to believe that it is because people are preventatively more careful or just stay home, but statistically speaking, driving is a little bit safer on Friday 13th," CVS statistician Alex Hoen told the Verzekerd insurance magazine.

Manhole memo prompts mutterings
Mumbai city officials are upset by an American warning about the risks of falling into manholes in India's commercial capital during the monsoon season.

An item posted on the US consulate website said that municipal workers in Mumbai sometimes open manhole covers at times of heavy flooding and then leave them unattended and unmarked.

"It's possible that you could inadvertently step into an open manhole," said the warning, issued after the monsoon rains arrived at the weekend.

The Brihanmumbai Municipal Corporation rejected the statement, and said it had e-mailed the US consulate stating it had cast the city in a bad light. Elizabeth Kauffman, speaking for the consulate, said they did not mean to hurt anyone's feeling. The consulate has since added a single sentence to its online advisory, saying open manholes are sometimes marked with tree branches.

Jail break foiled by air vent
A woman who attempted to escape from jail in Sydney had to be rescued by police after she became stuck in an air conditioning duct, police said yesterday. The 22-year-old woman had just been refused bail by a Sydney court when she attempted the escape, but then spent about an hour stuck in the air vent before she was rescued.

Police in the New South Wales state said the woman would now face an extra charge of attempting to escape.

'Spiderman' defends skyscraper climb
The man known as the French "Spiderman" bristled at accusations his feat of scaling a New York skyscraper encouraged novice copycats and said the act of "free speech" was a tribute to the city.

"This was not about, 'Alain Robert is climbing the building.' This is a fight against global warming," the climber, Alain Robert, 45, told reporters outside New York State Criminal Court, after appearing briefly before a judge on Wednesday.

Mr Robert scaled the 52-storey, 348-metre skyscraper last week, and six hours later another climber, Renaldo Clarke, made an apparent copycat ascent to raise awareness of malaria that was broadcast live on television. Both men appeared before separate judges on Wednesday on misdemeanour charges of criminal trespass and reckless endangerment as well as disorderly conduct, a violation. The charges carry a maximum penalty of one year in jail.

Robert has climbed more than 80 skyscrapers and landmarks including Chicago's Sears Tower and Taipei 101 in Taiwan, the world's tallest building.

The recovery begins

2008-06-03T16:15:00.000-07:00

by Mike Morgan
Staff Writer

WHITE BEAR LAKE — In the days after a deadly tornado ripped through town, Hugo officials and residents made significant strides in cleaning up, as a family grieved the loss of their 2 year old and others were left to literally pick up the pieces.

Countless volunteers, from local residents to representatives of national relief organizations to public servants, have offered an outpouring of support and help for victims.

At last count, 27 homes in the Waters Edge and Creekview Preserve neighborhoods west of Highway 61 in northern Hugo were decimated in the storm, which the National Weather Service categorized as an "EF3" that caused winds of up to 165 m.p.h.

According to the Red Cross, 61 homes were destroyed or sustained major damage and over 700 were affected in minor ways. Personal property damage has been estimated at $25 million.

"The kindness and generosity being shown by so many people is overwhelming and very much appreciated," City Administrator Mike Ericson said.
Three people remain hospitalized, including the father and sister of Nathaniel Prindle, a 2-year-old boy who was killed in the storm.

Another woman died, of an apparent heart attack died May 24 while cleaning up her tornado-damaged home. The victim, a Fridley firefighter, was in her 50s or 60s, according to the Associated Press.

Her identity was being held until family members were notified, according to the Washington County Sheriff’s Office.

Though residents of 150 to 200 homes in the neighborhood were temporarily evacuated on May 25, the majority were allowed to return home by May 29. Some 34 homes were red-tagged by building inspectors as uninhabitable, however.

Ericson said city officials and residents believe it’s miraculous more people were not seriously injured or killed, and credits the fast response time of emergency workers and the eagerness of neighbors to help during the storm’s immediate aftermath.

Families who lived in homes the twister destroyed are beginning to get a sense of what the tragedy means for their future.

"There’s nothing left," Marcel Linders said of his home. "I’m just starting to realize how long this process is going to be."

Linders, who lived next door to the Prindle family, was at home with his stepdaughter and her friend when the storm hit. All three ended up buried in debris in Linder’s basement and were helped free by neighbors.

"It puts in perspective how much people care," he said of his neighbors’ rush to help.

Linders, staying at a friend’s house, spent the week working to clean up the rubble of his house and is using a real estate agent to find a rental property for his family, he said.

The Salvation Army is supplying food and coordinating shelter for many who were displaced by the storm, the strongest in the area in half a century.

"It was as horrific as anything I’ve ever seen in my life," Ericson said of the twister’s aftermath.

Gov. Tim Pawlenty and others, including Sen. Norm Coleman and Sen. Amy Klobuchar, toured the area May 26 shortly after the Hugo City Council declared the area a state of emergency.

At press time, the amount of state and/or federal aid available to help pay for the damage had not been determined. Representatives from the Federal Emergency Management Administration surveyed the area last week.

Pawlenty cautioned that the local disaster may not qualify for FEMA assistance because most of the damage was to private residences that are typically covered by homeowner’s insurance.

Nine municipalities involving some 250 workers were called to help in the aftermath of the storm, which took place just after 5 p.m. Sunday. Though Oneka Elementary School near the two neighborhoods had served as headquarters for Red Cross and Salvation Army assistance on May 26 and 27, regular school classes resumed on the 28th and the new headquarters was designated as Hugo City Hall.

Other nearby homes and businesses, including several east of US-61, also sustained damage, though not as severe.

Many houses and vehicles, including several in Centerville, were damaged by a strong hailstorm some 20 minutes after the tornado passed through. The hailstones ranged from walnut-sized to some the size of tennis balls, residents reported.

Ericson said the city’s emergency storm warning system was triggered at about 5 p.m., alerting area residences to the approaching storm. Shortly afterward, he said, Public Works Director Chris Petree called him at his home in Maplewood to tell him that the second story of his (Petree’s) home had been torn off by the winds.

Ericson said he knew the devastation had to be "very, very severe" by the number of emergency vehicles he saw as he drove to Hugo from Maplewood.

Around that time, he had to pull his car over to seek shelter from the severe hail. In some places, the hail reportedly broke windows. Ericson said it caused damage to many city-owned vehicles that had just been pulled out for use.

When the storm subsided, Ericson drove on to survey the nearby neighborhoods.

"I knew how badly things were destroyed by the looks on people’s faces — disbelief and horror," he said.

Ericson noted that city personnel has been prepared for such a disaster through training completed through the state’s Emergency Operations Plan.

"Thank the Lord we had that training," he said.

A 120-year-old barn on Homestead Avenue North was moved about a foot off its foundation, while the adjacent home was subject to roof damage and several broken windows.

Several area businesses have already volunteered to provide services for the displaced.

Residents still needing assistance should call City Hall at 651-762-6300: or see accompanying stories more information.

A relief fund has been set up at U.S. Bank in Hugo. Ericson said Hugo Councilwoman Becky Petryk is forming a committee to determine how donations will be distributed.

As for clean-up, an event over the weekend attracted more than 1,000 volunteers who were bussed into town from the Washington County Service Center in Forest Lake.

Ericson said there will likely be another such volunteer event in coming weeks. More information is available to residents at www.ci.hugo.mn.us.

Brits 'unsure what insurance cover they have'

2008-05-20T05:46:00.000-07:00

While consumers in the UK typically spend £1,500 on insurance premiums every year, many do not know exactly what cover they have, a new study has found.

Research by Fool.co.uk showed that 39 per cent of people in the country have no idea about the details and levels of their insurance cover they currently possess.

While ten per cent said they believed insurance is a waste of money, the majority of consumers (60 per cent) think it is a price worth paying.

Overall, the research showed that home contents insurance is the most popular in the country - with 89 per cent opting to take out a policy. Motor (85 per cent) and building insurance (85 per cent) were also common.

David Kuo, head of personal finance at Fool.co.uk, commented: "The key to buying insurance is only to insure against risk that you cannot afford to bear.

"So, if you buy insurance you don't need then you are wasting money. But if you don't buy insurance that you do need, then eventually your decision will come back to haunt you.

"Not knowing how much insurance cover you have is just as bad. It's tantamount to playing a card game where everyone can see your cards except you."

Recently, Equifax suggested that many people were still not considering ID theft insurance, as they were yet to be affected by any form of identity fraud.

Housing aid bills face vetoes by President Bush

2008-05-08T07:01:00.000-07:00

WASHINGTON — Strapped homeowners could refinance into government-backed mortgages and states would get money to deal with foreclosed property under Democrats’ housing aid plan.

The measures, slated for votes Thursday, constitute the most significant action Congress has taken to date to address the housing crisis that’s at the center of the nation’s economic woes.

President Bush has threatened to veto both measures, which he says reward lenders and speculators. Democrats counter that the bills will head off hundreds of thousands of foreclosures, stabilize the shaky housing market, and prevent neighborhood blight.

The centerpiece of their plan is a bill by Rep. Barney Frank, D-Mass., the House Financial Services Committee chairman, to have the Federal Housing Administration relax its standards and back up to $300 billion in more affordable, fixed-rate loans for borrowers currently too financially strapped to qualify.

Those homeowners could refinance into new loans if their lenders agreed to take substantial losses on the original mortgages. Borrowers would have to show they could afford to make payments on the new loans. They would have to share with FHA at least half of their proceeds if they profited from selling or refinancing again.

The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years.

A separate bill by Rep. Maxine Waters, D-Calif., would send $15 billion in loans and grants to states for the purchase and rehabilitation of foreclosed properties. Proponents say it will prevent blight in neighborhoods plagued by abandoned, foreclosed homes.

But Republican critics argue it rewards lenders and investors who own the property, and could act as an incentive for them to foreclose rather than find ways to help struggling borrowers stay in their homes.

Democrats, seeking Republican support for their housing package, were planning to attach a grab-bag of measures Bush has called for.

Those include legislation to overhaul the FHA, to more tightly regulate government-sponsored mortgage giants Fannie Mae and Freddie Mac, and authority for state and local housing finance agencies to use tax-exempt bonds to refinance distressed subprime mortgages.

The plan is also to include a housing tax credit of up to $7,500 for first-time home-buyers, to be paid back over 15 years. It would permanently raise the limit on the size of loans FHA could insure and Fannie Mae and Freddie Mac could buy to $729,750 in the highest-cost housing markets. Those caps are scheduled to fall at the end of the year, to $362,790 for the FHA, and to $417,000 for Fannie Mae and Freddie Mac.

Faced with costly rebuilding, half of residents have left

2008-05-05T03:59:00.000-07:00

Roy Wenzl, McClatchy Newspapers

GREENSBURG, Kan. – After this town was destroyed by a tornado a year ago, most of the 59 wounded made it to the hospital, which was also damaged.

Physician assistant Chris Gardiner, who lived in a home that he'd bought for $75,000, was the hero of the day, creatively treating those who were seriously wounded.

Mr. Gardiner, like most of the about 1,300 residents, vowed to stay and rebuild.

But like about half of the residents, he is leaving.

Even though the town has received millions of dollars in federal and state aid, along with help from many charities, it's not enough.

They bought their houses for $30,000 to $80,000 and found that to rebuild them would cost $100,000 to $200,000. They left, even though FEMA, the Federal Emergency Management Agency, provided $69 million in aid, and insurance companies paid $153 million in claims.

Mr. Gardiner learned that his house would cost more than $200,000 to rebuild. "There were agonizing conversations with my family."

He planned to shake President Bush's hand Sunday following his daughter's high school graduation, then move to Hutchison, Kan., where he's found a job and a house that he can afford.

Still, the half who have remained are optimistic. They've decided to rebuild as a "green" city, hoping to lure environmentally friendly businesses.

"Let's be sure about one thing," said Chuck Banks, state director of the U.S. Department of Agriculture Rural Development Community Self Help Housing program.

"Greensburg will survive, in part because the town leadership is strong, vital and impassioned. Greensburg will come back. Maybe smaller, but there is real vision and leadership among those people."

Roy Wenzl,

McClatchy Newspapers

Selby offers salvation to first time buyers priced out of York

2008-05-01T05:48:00.000-07:00

Would-be first time home owners priced out of the market in York are beating a path to a new low-cost housing venture just 30 minutes away in Selby. They've found that by moving outside the city, but still within travelling distance of their favourite haunts, they can save up to £50,000 on the cost of a one-bedroom property and potentially more on a two-bedroom home.

Their salvation has come in the shape of Redrow's price-busting Debut @ Selby development, which features brand new one and two-bedroom homes from less than £60,000.*

One young couple who attended a special first time buyer event organised by Redrow were stunned to find they could buy a brand new home in Selby at little over half the price of a parking garage that was being advertised for sale in York city centre.

Richard Sunley, 22, who was looking for a first home with his partner Claire, says: "Originally we were looking for a home in York, which was only leading to disappointment. Everything was so expensive and the final straw came when we saw a garage advertised for £150,000. It was then that we decided to move our search out of York to see what else was available.

"Selby is more than manageable and hopefully it will give us a jump start onto the property ladder"

Redrow's Debut development, on Holme Lane, Selby, features 123 properties ranging from practical one-bedroom studios to spacious two-bedroom duplex apartments - all promising the concept of affordable, yet comfortable living.

Current prices are from £56,500* for a one-bedroom ‘D1' studio up to £99,500** for a two-storey ‘D4' design with two double bedrooms and bathroom at entry level and an open plan living, dining and kitchen area above. All of the properties fall well below the stamp duty threshold - another big plus for first time buyers.

Giselle Ledgard, area sales manager for Redrow Homes (Yorkshire) says: "According to the latest statistics, the number of first time buyers entering the property market is currently at its lowest since 1980.

"Our special event at Selby certainly brought lots of interest from people who just can't afford to get onto the property ladder in York itself. Indeed, our own research has shown that a typical one-bedroom flat in the city now costs £109,950.

"Many would-be home owners are waking up to the fact that it's possible to get from Selby to York by train in around half-an-hour and the town itself has a comprehensive range of shops, restaurants, pubs, night clubs and health facilities all on the doorstep or our development."

Redrow has put special measures in place to stop buy-to-let investors snapping up the Debut homes and purchasers are able to defer 15% of the initial purchase price for up to 10 years, which is another great saving.

Home owners also pay a single monthly service charge, which includes the gas, water and electricity bills, as well as buildings insurance, external maintenance - and even the cost of internal window cleaning - making it easier for novice home owners to manage their monthly outgoings.

Other first time buyers keen to get a foot on the property ladder can find out more by logging on to Redrow.co.uk.

General information about Debut, including video walk-throughs of some of the properties can be found at Debutbyredrow.co.uk.

* Price quoted of £56,500 includes Redrow Easi-buy assistance, full price is £66,999.

** Price quoted of £99,500 includes Redrow Easi-buy assistance, full price is £116,500.

Business of last resort

2008-04-27T05:41:00.001-07:00

Seven years ago, Mandisa Bruce of Muskegon purchased a 1996 Oldsmobile Aurora for $11,831.
Today, she is being sued for $16,711 by a Southfield "sub-prime" auto loan company although the vehicle, which had sat unused in her driveway for years, was stolen and left burnt-beyond-use in Muskegon Township in 2006.

"I knew I spent too much for it when I bought it," said Bruce. "But I had just gotten a job in Grand Rapids and I needed transportation. I had bad credit so I knew it wasn't going to be cheap, but I didn't have a choice. I couldn't take the (MATS) bus to my job in Grand Rapids.

"But to pay $16,000 for a car that was five years old at the time and had more than 100,000 miles on it doesn't seem fair."

Such is the plight of the working poor who, because of lack of wages and good credit, are forced to work with those in the so-called "poverty business." Needing a quick fix, they often spiral deeper and deeper into debt.

From pawn shops to rent-to-own outlets to pay-day advance companies and urban corner stores with high-priced groceries, the "poverty business" is flourishing in the country and throughout West Michigan as the economy worsens and gas prices rise.

The Muskegon area has at least nine cash-advance outlets, four rent-to-own stores and four pawn shops that profit from charging high prices, fees or interest rates on the backs of people who have nowhere else to turn.

"People are in desperate situations when they walk in the doors of these businesses," said Tim Burgess, executive director of the Neighborhood Improvement Association, which works with low-income homebuyers in Muskegon.

"Some of what is done is legal and legit but evil," Burgess said. "They know they are taking advantage of those that are in need of real help."

BusinessWeek magazine in a story last year on the "poverty business" reported that payday lending companies have grown from 300 in the early 1990s to more than 25,000 today, with five of them major corporations traded on the New York Stock Exchange or NASDAQ. The "alternative financial services" sector, which services people with no credit or bad credit, represents more than $250 billion a year in loans, the magazine reported.

The question begs: Are businesses such as Golddiggers pawn shop on East Laketon or J.D. Byrider -- the national sub-prime auto king with an outlet in Muskegon -- serving the working poor who need quick access to cash, goods or cars or are they "preying" on their financial desperation?

It depends on who you talk to.

The woman who brought in a "mother's ring" to be pawned at Golddiggers on Monday was thankful for the $8 she received, though store owner Adam Pollock explained he couldn't pay more.

"I'll take it," said the woman, who asked not to be identified. "I need gas for my car."

When people take goods to a pawn shop, they are putting an item up for collateral for a cash loan and given so many days to recover the item at a stiff interest rate -- 35 percent at Golddiggers. Some just want the cash and never return to pick up their pawned items.

But Pollock said he is providing a service -- "I'm helping people get money so they can buy gas to go to work. You couldn't go to a bank and get a small loan of $100."

Pollock said it is a myth that people like him are getting rich at the expense of the poor. He said he gave $116,000 in loans last year, but after paying rent, his two employees -- who he pays $10 or $11 an hour -- had a better income than he.

Pay big, or do without

Mandisa Bruce, who also was housing her brother and his son, bought the Oldsmobile at MD Auto Sales, 5710 Holton with a "sub-prime" auto loan that was eventually sold to Automotive Credit Corp. of Southfield, Mich. Automotive Credit has been in the sub-prime auto loan business since 1992, purchasing loan contracts from independent dealers for "consumers with limited or challenged credit histories who are unable to obtain financing from traditional sources," according to the company Web site.

The loan agreement was for $10,350 after Bruce put $1,500 down on the five-year-old car. The 36-month loan had a 25 percent interest rate -- the legal limit under Michigan's usury laws -- for a monthly payment of $411.51.

That interest rate is typical for many local people seeking transportation, said MD Auto Manager Nick Davis.

"Due to the economy, our customer's credit is getting worse and worse," Davis said. "(Interest) rates go up when you have credit problems. It's like trying to get low insurance rates with two (drunk driving charges)."

For many low-income auto buyers, the option is to pay 25 percent interest rates or go without a car, which often is critical to keeping a job.

'Dream homes' aspiration for Brits

2008-04-25T06:33:00.000-07:00

Despite the recent downturn in the UK property market, 60 per cent of Brits still assume they will one day own their dream home.

Figures from the Nationwide illustrate the average price of a property has fallen for the last five consecutive months, but undeterred Brits are still one day dreaming of moving up the ladder to their perfect property.

For one in five of these would-be homeowners a country character house would be their ideal property.

A detached home with a garden in the suburbs was next choice along with or a self-build or self-designed home, which were each mentioned by 18 per cent of those surveyed, in research carried out by Legal & General.

The top location for a dream home is in a village according to the results, with 25 per cent of respondent selecting this idyll.

This is a jump of 17 per cent compared with the last survey, when only eight per cent mentioned this as the location for their dream home.

A life by the sea was also popular, with 22 per cent saying they would like to live on the coast, compared to just eight per cent seeking an inner-city life.

"The survey would indicate that people are still quite positive about the future housing market given the number of respondents who still wish to live in their dream home," said Garry Skelton, marketing director for Legal & General's general insurance business.

"However, probably reflecting financial concerns, the number of Brits who do not expect to ever live in their dream home has risen from just over 20 per cent to 30 per cent since the last survey."

The top five most sought counties for a dream home were: Cornwall; Devon; Greater London; Surrey and Yorkshire.

Chris O'Toole

Irish mortgage brokers to begin charging clients as sector faces contraction

2008-04-24T05:46:00.000-07:00

By Finfacts Team
Apr 24, 2008 - 11:48: AM

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Irish mortgage brokers are expected to begin charging for their services as home loan lenders slash commissions or opt to cease using the intermediaries. Business transacted by brokers will inevitable fall and a contraction of the sector will follow.

The Professional Insurance Brokers Association said on Thursday that it is inevitable that an extra burden on prospective new home-owners, who do not deal directly with lenders, would be introduced.

Last year, mortgage lender EBS said that it has traditionally operated exclusively through its network of branches and franchised agents. But it said that the market for home loans in Ireland had been transformed "by a new breed of independent mortgage brokers who now account for 40 percent of the market. To respond to this marketplace change, EBS needed a channel to reach these brokers."

Big bank brands in the market will be in a strong position with the contraction of the broker market.

Today's announcement from the Professional Insurance Brokers Association (PIBA), follows the decision by several Irish banks and other lenders to cut back the commission they pay.

Another monthly decline in existing house sales and prices

2008-04-23T05:01:00.000-07:00

Every month for more than a year, the news has been the same: Sales of existing houses have fallen.

House sales in most St. Louis area counties continue to nose-dive, falling by as much as 41 percent in one county from March 2007 to March 2008. Median prices also declined from last year throughout the region, with St. Charles, Madison and Monroe counties as notable exceptions.

In the Midwest, sales fell 15.9 percent from March 2007, while nationally they dropped 19.3 percent, according to the National Association of Realtors.

The median price in St. Louis County was $148,450 in March, up from February's $135,000. In St. Charles County, the median house price moved up to $184,000 in March, from $174,500 in February.

But potential sellers remain focused on the sluggish sales pace. Tom and Barbara Niemann put their six-bedroom Frontenac house on the market last September for $800,000. They later reduced the price by $50,000.

After getting no offer in four months, the Niemanns took the house off the market.

"I think it was the economy. Everything was just slowing down," said Barbara Niemann. "We are just going to wait it out until the highway (Highway 40) construction is finished and the economy gets better."

The couple may have to wait for quite some time. Real estate experts point to a number of hurdles facing the housing market.

— Tighter credit standards. With the subprime mortgage mess continuing to ripple, banks are turning away more mortgage applicants.

"These are people who maybe would have qualified for a loan last year," said Bob Marx, vice president for mortgages for Midwest Bank Centre in Lemay. "We are having to have some tough conversations with folks."

Prospective buyers with credit scores of 600 or less are having a tough time finding mortgage insurance, Marx said, and lenders are less willing to make loans on mortgages with relatively small or no down payments.

As tougher credit requirements eliminate some borrowers, sellers are competing for a smaller pool of buyers.

— Buyers on the sidelines. That's having a domino affect on house sales, said Tari Jacobs, a broker and owner of Concept Real Estate, based in Columbia, Ill.

"Some people that want to move simply can't because they can't sell their house," Marx said.

Jacobs has seen the greatest slowdown in the $250,000 to $350,000 price range, which is a traditional second- or third-house market.

First-time home buyers also are being more cautious, she said.

— Mortgage problems. Foreclosure rates continue to increase, which puts more houses onto the market.

And some property owners who bought at the peak of the market are being forced into short sales. A short sale is when a homeowner sells a house for less than the purchase price to avoid foreclosure. Such sales are spiking, Jacobs said.

"A couple of years ago, I couldn't tell you what a short sale meant; now I am an expert," said Jacobs. "I have six short sales listed right now and several foreclosures."

— Economic uncertainty. Rising food and gas prices and concerns over job security are making buyers jittery.

"Clearly consumer confidence, or a lack thereof, drives our market. People need to feel good to go out and buy," said Shawn Kelsey, general manager of Kelsey Real Estate Group, based in Chesterfield. "The information they receive on a daily basis is generally negative right now."

With the Federal Reserve lowering certain interest rates, and the federal government taking other steps to stabilize the economy, a market turnaround could happen in the second half of this year, said Albert Suguitan, president and chief executive of Greater Gateway Association of Realtors in Glen Carbon.

Kelsey figures there is pent-up demand, which could help the housing market in coming months.

He also offered a caveat: "If there is a further erosion of consumer confidence, a recovery could be pushed back."

Yale economist Robert Shiller, whose 2000 book "Irrational Exuberance" correctly forecast a stock market correction, said in a speech Tuesday that U.S. housing prices could fall more than they did during the Great Depression.

House prices rose about 85 percent from 1997 to 2006 adjusted for inflation, the biggest national housing boom in U.S. history, Shiller said.

"Basically we're in uncharted territory," Shiller said. "It seems we have developed a speculative culture about housing that never existed on a national basis before."

A step-by-step guide to helping your children onto the property ladder

2008-04-16T17:20:00.000-07:00

There are many ways you can help your child get on the property ladder. Some parents allow their children to live at home rent-free to help them save up for a deposit. Others just offer cash. Here are some of the ways you can help:

Contribute to the deposit

A sizeable deposit helps in many ways. Having at least 10 per cent of the value of the property they want to buy, gives the first-time buyer a wider choice of mortgages and a chance to secure a lower rate. The difference between loan for 90 per cent of the value of a property and 100 per cent of the value of the property can be as much as 1 per cent. Putting down at least 10 per cent will also help the first-time buyer avoid a higher lending charge. This is a form of insurance some banks charge to those who borrow 95 per cent or more of the value of the property.

Some parents contribute to the deposit as part of their inheritance tax planning. Inheritance tax is charged at 40 per cent on estates over £275,000. Cutting down the size of your estate now can ensure less of it goes to the taxman when you die. The gift is tax free provided the donor survives for the next seven years. However, sums over £3,000 will be liable to tax if you meet your maker before then.

Parents who do not have ready cash sometimes remortgage their own homes to raise the funds. Interest rates are still relatively low and falling. Tapping into the equity under your roof could be an option provided you can cope with the extra monthly payments.

A joint mortgage

You can help boost your child’s buying power by taking out a joint mortgage. That way, the amount you can raise will be based on your combined income. This is good if you are mortgage-free and still earning but if you have another mortgage and other debts your borrowing power will be reduced.

If you are taking out a joint mortgage, you need to decide whether to go for a joint tenancy, a form of ownership usually favoured by couples as both parties own the property equally, or tenancy in common, where each party owns a particular share of the property. However, most joint mortgages are offered on the basis of "joint and several liability". That means that if your child stops paying you are liable and vice versa

There are tax implications too. If you already own your home, you will have to pay capital gains tax on your share of the property when it is sold. Equally, if your child wants to buy you out at a later stage, he/she may have to pay Stamp Duty, if your portion of the property is over the £125,000 Stamp Duty threshold.

Acting as a guarantor

By acting as a guarantor, you agree to step in and cover your child’s debt if he or she defaults. By having you as a safety-net, lenders are more likely to advance larger sums to your child provided that you earn enough to cover the entire debt. Both of your incomes will be assessed. However, as the child will be paying the mortgage on his or her own (unless disaster strikes) it is important not to overstretch. The mortgage and the property will be in the child’s name so there is no capital gains tax liability for you.

However, lenders are cautious about extending this arrangement on loans above 90 per cent of the value of the property. A deposit is still important.

Special Deals

There are some options which bridge the gap between acting as a guarantor and taking out a joint mortgage. Both the Bank of Ireland and Bristol & West offer the “First Start” mortgage where the parent’ income (after their own borrowing commitments) is added to the child’s. The parent is not a guarantor but jointly responsible for the loan and repayments. However, unlike a joint mortgage, the parent’s name appears only on the mortgage but not the deeds. This means that if the child wants to take over the entire mortgage at a later stage, the parents will not have to pay capital gains tax.

Residents begin tornado recovery

2008-04-13T17:12:00.000-07:00

PIKEVILLE, N.C. -- A tornado ripped through northwestern Wayne County on Saturday, tearing through homes and bringing down trees. But a day later, residents are picking up the pieces, moving on and hoping for the best.

On Sunday, Anthony Herring began piecing parts of his trailer back together by hand because he has no insurance.

"I had to go underneath the mobile home and make sure the tie straps are anchored good and crawling up under there because with the wind and force, it moved everything," he said.

The tornado blew across Wayne and Johnson counties, downing trees and pulling siding, even blowing two vacant trailers into one another. Still, area residents are grateful because they know it could have been worse.

"I look at my neighbors, what they've gone through, and I'm thankful," said Herring.

In Pikeville, two large trees fell on top of a couple’s roof.

"[The radar] was showing that storm coming through here and that thing looked like it was going to Pikeville and Freemont, so I told my wife that thing is right on top of us,” resident Alton Finch explained.

Finch says he then told his wife to run to the basement. After surveying the damage, he saw that one tree had been uprooted about 20 feet from the ground and lay across his house. It also brought another tree with it. Now, Finch picks up limbs from his yard one by one.

"It’s going to be a right good while of cleaning up to do yet,” he said.

In the meantime, it’s been estimated he'll have to fork over $1,000 just to get the trees off of his roof. That doesn't include the damage to his house. Despite the damage, Finch is still in good spirits. He says he and his wife, Alice, will keep on living.

Although his clock stopped at the exact time the trees hit his home, Finch hasn't. He took out the grill and began barbecuing for a Sunday family get-together.

Spain ranks highly in tourism report

2008-03-09T17:25:00.001-07:00

Luxury holidays in Spain have come under the spotlight as a report ranks the country in the top ten destinations most likely to tourist and travel development, according to the World Economic Forum.

The second annual Tourism Competitiveness Report examined economic development linked with environmental sustainability and graded countries according to how helpful conditions were for this kind of growth and change.

In all, it looked at the economies of 130 countries and was published through collaboration with several other organisations including Deloitte and the World Conservation Union.

A particular jewel in Spanish tourism's crown is La Manga Club, a luxury resort set in the countryside of Murcia between the Mediterranean and the Mar Menor seas, which enjoys a mild Med climate and warm seas.

The development of holiday apartments, villas, restaurants and leisure facilities spans 14 acres of tastefully and sympathetically designed resort complemented by palms, pine trees, lemon groves and streets fringed with oleander.

Earthquake could cost millions in insurance claims

2008-03-07T15:34:00.000-08:00

The earthquake that shook Britain last week could result in thousands of insurance claims that could collectively cost tens of millions of pounds.

Sainsbury's Finance has estimated that as many as 3,250 home insurance claims could be made following the earthquake, which occurred on February 27th and reached 5.2 on the Richter Scale.

The bank also pointed out, however, that as one in 20 households are currently without buildings insurance, many homeowners will have to pay large repair bills out of their own pocket.

Neil Laird, Sainsbury's home insurance manager, commented: "The recent earthquake just shows that you can never tell when exceptional circumstances may occur and you might need to make a claim.

"Unlimited buildings cover ensures peace of mind that you won't be left underinsured should the unthinkable happen."

Storm, winds cause plenty of damage

2008-03-05T16:29:00.000-08:00

JOHNSTON COUNTY, N.C. -- People across North Carolina spent Wednesday cleaning up their homes and property after a long line of severe weather swept across the state Tuesday night. Rain drenched most of the state, and strong winds toppled trees and knocked out power lines in several areas.

Donnie Griffin and his wife had their lives uprooted Tuesday night when strong winds brought a tree crashing down through their roof, just a few feet away from where Griffin was standing.

"I'm a lucky fellow, so I'm just happy I was where I was,” Griffin said.

It's a sight neighbors hoped they wouldn't see again, especially after weathering Hurricane Fran a few years ago.

"[I’m] thankful it wasn't mine, but sorry for the people that it was because damage like this is hard to take, especially if you've just moved into a house and haven't lived there too long. It's quite difficult,” neighbor Josephine Lawson said.

The Griffins bought the house just a year and a half ago. It was the couple’s first home. A friend of the previous homeowner says there were actually talks about cutting the tree down, but the homeowner didn't want to because she believed it to be one of the oldest trees in Clayton.

Now it appears that nature has taken care of that itself, and the Griffins are left hoping that their insurance will take care of other matters. Contractors estimate the repair could cost tens of thousands of dollars.

"Looking at it, I'm sure it's going to be a pretty complicated process, so we're planning on being out for quite a while,” Griffin said.

Now that the storm has passed, the Griffins will replant and start building their lives all over again.

The storms also knocked out power for thousands of residents. Progress Energy reported close to 88,000 outages across the state, mostly in Wake and Johnston counties.

Freddie Mac Gives Mortgage Insurers a Break

2008-02-14T16:47:00.000-08:00

Freddie Mac, the No. 2 U.S. home funding company, said it will give its private mortgage insurance partners some relief by reducing the amount of money they must put into Freddie Mac's reinsurance system, leaving them more reserves to cover failing loans.

The company said the change was triggered by the decline in home prices and the poor performance of subprime, Alt-A and other higher-risk mortgages. The temporary change is aimed at enabling mortgage insurers to retain more insurance premiums to pay current claims and rebuild their capital base, it said.

Mortgage insurers have been battered with losses as borrowers missed payments and investors stopped buying a wide variety of debt perceived to carry too much credit risk.

The action concerns Freddie Mac's captive reinsurance structure, in which the mortgage insurer pays a portion of its premium income to a special trust set up to cover a previously agreed share of losses from a pool of mortgages.

Effective on or after June 1, the portion of the premiums that Freddie Mac-approved private mortgage insurers pay to captive reinsurers, or cede, will be limited at 25 percent, the company said in a news release.

"Beyond limiting the allowable cede to 25 percent, the temporary policy does not limit the mortgage industry's use of captive reinsurance," the company said.

Dubai To Allow Home Insurance

2008-02-13T16:27:00.000-08:00

Dubai's buyers can finally decide to have a sigh of relief, since they can buy now properties insured against any structural damages. The buyers used to be left in lurch until today whenever any structural damage came to light after the properties were handover.

They couldn't ask for any legal proceeding or compensation due to the lack of proper laws they had. But, the Real Estate Regulatory Authority (RERA) has finally decided to change this scenario, and introduced a new law which makes developers responsible for damages that might get noticed after the property had been handed over. The buyers will be free to approach the regulatory body whenever there seemed to be any breach of law taking place. Scores of Dubai apartments, furnished villas, hotels and Dubai hotel apartments will come under the purview of this new legislation.
Investors used to withdraw from projects earlier, citing the lack of insurance cover as a reason. Under the new law, however, the developer will be made answerable to courts for any sub-standard construction.

For example, any serious wall cracks taking place within the first ten years of property handover, can amount to be a case for compensation. Additionally, any electrical, mechanical or plumbing related irregularities can also be challenged during the first year. Any irregularities in the construction of Dubai apartments, hotels, furnished villas or Dubai hotel apartments could not be challenged in the courts earlier, since there was no clear framework to do it.

In addition, this law adds more clarity about the issue of maintenance of buildings. Under the new directive, a Home Owner's Association (HOA) will be established for each jointly owned property and asked to look after the common areas, such as gyms, swimming pools, parking spaces, entrances etc. They will have to play the role of watch-dogs and see that the buyer's money was properly made use of. It is surprising that, only five percent of Dubai's households carry home insurance coverage, which is too few in numbers compared to what we may get to see from the countries like the USA, the UK, Australia or Japan.

The formation of HOA is key ingredient of this whole exercise. It will be required to maintain and be the beneficiary of the insurance cover in each case, while the constituent members, each having the ownership of one unit, will have to pay up the premium. Dubai may be a late entrant into this exercise, but it is expected to pursue it seriously now, and the buyers and promoters should be getting used to it now. The city needed to have it anyway, with so many high-end Dubai apartments, hotels, furnished villas and Dubai hotel apartments dotting its skyline.

Although, insurance cover is a basic necessity for any real estate buyer, people of Dubai did not shown any keenness about it in the past, may be, since most of them happened to be short term buyers. However, the introduction of the new law by RERA will change this scenario fundamentally, one hopes, and the awareness about property insurance will grow further. Dubai is as much known for its successful commerce, as for its shining real estate, which comprises of lavish hotels, shopping malls, Dubai apartments, villas and Dubai hotel apartments. The new property law by RERA will add more value to its real estate.

Pankaj Mohan is a freelance writer, who often writes on behalf of Dubaishortstay.com. Check this site to book your Dubai apartments and Dubai hotel apartments.

iPhone seller vacates his rented PoCo home

2008-02-06T03:30:00.000-08:00

Phone website is just one of many linked to convicted fraudster
Gillian Shaw, Vancouver Sun
Published: Wednesday, February 06, 2008
The man behind an Internet sales scheme that saw people pay for iPhones that never arrived has apparently abandoned his $2,000-a-month Port Coquitlam rental home.

Joshua Tristan Trousdale, who relocated to B.C. after being convicted of fraud in New Brunswick under his earlier name, Scott Frederick Byers, is linked to an elaborate Internet operation that is inviting people to divulge their personal and financial information.

Trousdale picked up and moved recently without notice, following a pattern that has kept his numerous online activities operating despite a string of people complaining to law enforcement agencies about their dealings with him.

The apparently lucrative operation -- his latest operation, iPhoneNow.ca, claims to have taken more than 12,000 iPhone orders -- highlights the wild west aspect of the Internet, where authorities face difficulties ranging from jurisdictional issues to simple technological overload.

iPhoneNow.ca is only one of many websites linked to Trousdale, sites that are slick and convincing, often with smiling business people and online chat support, offering everything from voice-recognition technology to complete merchant financial services.

In exchange, Web surfers are invited to divulge extensive personal data, including credit card numbers, security codes, social insurance numbers and other valuable information.

Various headquarter addresses are listed on the websites' registration, including Canwest Global Place in Winnipeg, corporate head office of Canwest Global Communications Corp., which owns this newspaper and also CHBC in Kelowna, which carried a story on Trousdale when he lived there.

Less than a year ago several suppliers were left unpaid in the wake of a Trousdale business scheme gone sour, a discount store called Deals Depot in Kerrisdale. However, even as people were filing complaints with the Vancouver police over that, Trousdale was starting up his new online venture offering iPhones for sale.

His base of operations was a rental home in Port Coquitlam, described by his landlord as filled with computer equipment and widescreen televisions, which he appears to have vacated without notice following stories about his operations last week in The Vancouver Sun.

Meanwhile, Trousdale's online presence continues unabated with his iPhoneNow.ca website now offering a $50 Starbucks card in a contest for customers who write testimonials saying they have received their iPhones.

This tempting with prizes marks a deviation for Trousdale, who has quashed many online complaints swirling about him with threats of costly lawsuits.

As recently as late last week, the operator of one online blog said he was telephoned by Vancouver lawyer Shafik Bhalloo, who was identified in a letter signed by Trousdale as his company's legal counsel. Bhalloo told The Sun he does not act for iPhoneNow.ca, but he refused to confirm or deny he is working for Trousdale or his related company, CIPC Worldwide Holdings Corp.

In the wake of The Sun's stories iPhoneNow.ca, which had been threatening customers with a $500 "fraudulent" transaction penalty if they asked their credit card provider to reverse the charges for the undelivered phones, posted a notice saying customers could receive a refund if they e-mailed the site.

Laser World’s start boat returns home

2008-02-05T16:50:00.000-08:00

It did not take much for the ‘Alfred’s II’ to break its mooring and come to lay to rest at Terrigal’s ‘The Haven’ on Monday evening, but it has been a massive job to get what was to be the Laser World’s start boat back to dry dock.

Over 35 hours have passed since the incident, but it was all go at The Haven this morning, a Caterpillar digger, Waters Crane Services from Gosford and Mark Anderson’s Boat Transport Specialist semi-trailer all involved in the exercise to return the 32ft half cabin boat to the Royal Prince Alfred Yacht Club on Sydney’s Northern Beaches.

An insurance assessor has already been to the scene and an employee from the RPAYC has also been in attendance.

Originally, a Laser sailing coach spotted the boat lying on its side on the beach and notified the World’s event management. Max Ryan, a sailor of note and member of the start boat crew was first on the scene, followed by rescue authorities and police.

At 9.30am this morning, a crew had gently lowered the vessel onto Anderson’s truck and were making sure the boat was secured properly before heading home.

The propeller is bent and had pushed up through the hull, leaving a hole. A piece of carpet is poking through a hole on the forward port side and bits have chipped away from the keel - and that’s just what an untrained eye picks up.

During his speech at last evening’s Laser World Championship Opening Ceremony, Gosford Sailing Club president Vardon Brown said: “Our thoughts are with the Royal Prince Alfred Yacht Club. They kindly loaned us a boat and what has happened is terrible.”

A Good Samaritan from the host venue, Gosford Sailing Club, has made his comfortable catamaran available and that is what will be used today for the Laser World’s Practice Race starting from 2.30pm. The weather looks kinder too; the sun is out for the first time in days, expected rain nowhere in sight as yet, and a light breeze is blowing.

Di Pearson
Laser World’s media manager
Phone: 0410 792 131

Senior Citizens and Adult Children Often Ask if They Owe Taxes on a Gift

2008-02-04T15:41:00.000-08:00

Feb. 4, 2008 - As a Certified Financial Planner, I’m often asked about issues regarding inheritance, gifting and the resulting taxes. Here’s a classic example of just how complicated these situations can be, using a question from a reader in Michigan we’ll call ‘Bob’.

Bob writes, “I have a question about my mom's home that I inherited. Before my mom died she put her real estate into joint ownership between her and my sister. It was supposed to help make settling her estate easier.

“Before mom passed away, my sister died. After my sister died, mom placed the real estate jointly between herself and me. Mom passed away over a year ago and I am now contemplating the sale of her house. After mom's death I had the home transferred to my and my wife’s names.

“What are my capital gains liabilities on the sale of the house? Do I pay capital gains on the whole sale, half the sale, or none of the sale?”

Bob’s lack of knowledge is nothing out of the ordinary. Few people are aware of the tax implications and needlessly end up creating a tax headache for themselves and their loved ones.

Let’s explain what an inheritance is and how it differs from a gift. An inheritance is money, property, or another asset of value that is transferred after death. A gift occurs when money, property or other assets are transferred before death. An inheritance and a gift are handled very differently from a tax standpoint.

Each of us can give gifts up to $12,000 per year to any person we want without any Federal tax implications. (There may be some state gift tax implications so check with an accountant.)

Inheritances aren’t subject to Federal Estate Tax unless the estate’s value is over a certain amount, which is currently two million dollars. Because all assets owned by the deceased are included in the estate’s valuation (i.e. retirement accounts, annuities, life insurance, etc.), reaching that two million dollar limit is easier than you think.

Even if there is no gift or estate tax when the assets are transferred, there can be capital gain taxes when the assets are sold. The trick is determining the asset’s original value, or cost basis, and that depends on whether the asset was a gift or an inheritance.

When you receive a gift, you also receive the cost basis the person giving the gift had.

So, if a parent paid $10,000 for a home and it was worth $100,000 when it was gifted to the child, the child now has a cost basis of $10,000. If the house is sold 5 years later for $125,000, the child will owe taxes on a gain of $115,000.

If the house was instead inherited by the child, the cost basis is the value of the house at the time of inheritance, which in our example would be $100,000. So when the house is sold 5 years later for $125,000, the child only owes taxes on the gain of $25,000.

In tax parlance, the house received a step-up in basis when transferred after death. It doesn’t if transferred prior to death.

Let’s apply this to Bob’s situation. When Mom added Sister’s name to the deed, it was a gift to the sister of 50% of the value of the home and Sister’s cost basis was 50% of Mom’s cost basis.

When Sister died and the house transferred back to Mom, it was considered an inheritance. So Mom’s cost basis on the 50% she inherited was the market value at the time she inherited it back. So 50% of Mom’s ownership is based on her original cost basis and the cost basis of the other 50% is the value at Sister’s death.

When Mom then adds Bob’s name to the property, it’s another gift. So Bob will inherit 50% of Mom’s new, adjusted cost basis. When Mom dies and the other 50% is transferred to Mr. K, his cost basis in that 50% is the value at the time of Mom’s death.

Now you know why accountants make all that money!

If Mom had used a Living Trust instead, there would have been no need to add names to her house and her heirs would have 100% of stepped up cost basis, saving thousands of dollars in taxes.

If you have a specific question or would like more information, give me a call toll-free at 1-877-827-1463 or you can also reach me by email at jeff@guardingyourwealth.com. I will answer your financial question FREE.

Stylish showhome for sale at George Wimpey’s The Avenue

2008-02-04T15:39:00.001-08:00

An amazing opportunity to own a professionally styled showhome is now available at The Avenue, George Wimpey East Midlands’ sought-after development in Kirkby-in-Ashfield, Nottinghamshire. The four-bedroom ‘Pearl’ housetype has been beautifully decorated throughout by the leading housebuilders’ interior design team.

What’s more, the property comes complete with carpets, curtains, soft furnishings and luxury fittings – a contemporary design ready and waiting for the lucky homebuyer to move straight in.

With proportions perfect for family living, the showhome features a combined breakfast/family room with French doors to the rear garden, a thoughtfully designed kitchen, a separate dining room with double doors to the entrance hallway, a large lounge and a guest cloakroom on the ground floor.

Upstairs, the landing leads to a light and airy master bedroom benefiting from en-suite shower facilities, three further spacious bedrooms, and a separate family bathroom. Outside there is a single garage.

Like all new homes at the development, the ‘Pearl’ enjoys a high standard specification including gas central heating, double glazing and fitted kitchen with built-in oven, hob and hood.

The showhome is priced at £214,995, while a choice of alternative four-bedroom housetypes is also available at The Avenue – the ‘Azalea’, ‘Citrine’, ‘Magenta’ and ‘Magnolia’ designs, priced from £199,995.

The three-bedroom ‘Heather’ and ‘Scarlet’ housetypes start from £136,995.

To help first-time buyers place a foot firmly on the property ladder, George Wimpey will pay their 5% deposit, a saving of thousands of pounds on the cost of owning a brand new property.

Customers who have a property to sell can also save money and time with George Wimpey. The leading housebuilder will cover the cost of their Home Information Pack (HIP) and find a buyer for their current property – guaranteeing 100% of the market value – and pay the estate agents’ fees.

Building on the success of the programme, the housebuilder’s ‘easymover secure’ scheme offers all the existing benefits – with the added incentive of, if you don’t sell your house within 28 days then George Wimpey (with partner Move With Us) will buy it from you!

Customers can also take advantage of the leading housebuilder’s House 2 Home bespoke moving package comprising free UK removal regardless of distance or size of property, full packing and unpacking service and insurance cover.

Kirkby-in-Ashfield is home to an excellent array of independent and high street stores, in addition to a market four days a week, while cosmopolitan Nottingham is within easy reach of the development.

Nearby Nottingham and Mansfield are easily reached by road and the public transport serving the area, and commuters will appreciate the convenient access to the M1 and A60, and the town rail station services to Nottingham, from where there are regular services to London.

The Sales Centre, located in Great Portland Park, Kirkby-in-Ashfield is open seven days a week from 10.30am to 5.30pm. The Sales Executive can be contacted on 0845 688 1377.

Information on George Wimpey developments across the region is available by visiting the web site at Georgewimpey.co.uk.

Getting An Online Insurance Quote

2008-02-04T15:37:00.000-08:00

(Best Syndication) Perhaps the greatest influence on our lives this decade has been the worldwide web, which now allows us to do things online which previously we had to do physically. One of such things is getting a home insurance quote, with most people spending hours in front of a computer, online applications have become very popular, the ease involved and the fact that they do not need to study long endless documents or hold endless time consuming discussions is a major factor for searching for home insurance online.

Just a few mouse clicks and a few typed in words in between a hectic schedule and they have information they can study at leisure (however it is still very important that you take the time to understand the basics home insurance before taking out a policy) about what insurance scheme they prefer to invest in.

It is very easy to get an online home insurance quote, as there are a host of websites offering quotes from different insurance companies which you can compare alongside each other, any website you choose to visit online will ask you to fill some forms that cover your personal details and the kind of home and contents you would like insured, and then come up with quotes from top insurance companies in your area.

It is important that you not only look into the value of quotes, but make sure you are dealing with a reputable insurance company that can pay if you ever make a claim. The homeowner policy has been around for a long time and so most of us have a general concept on how the policy works, the more you know about the market value of your house and the approximate cost to rebuild it the better for you when shopping for the homeowner policy.

You might obtain better quotes if you combine your vehicle and home insurance coverage, and give a higher deductible amount than you actually intend to pay. Quotes can also be reduced by seeking coverage only on the building and not the land the building stands. Other elements that will help you get better quotes and discounts are fire extinguishers , alarms and other security systems installed in your home.

Senior citizens and non-smoking homes also get a good discount on their online quote. Usually it is a good idea not to file an insurance claim for little reasons like broken pipes, graffiti, or theft of items that are inexpensive, repeatedly filling claims will increase your premium and you might get blacklisted.

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