The reverse mortgage was invented decades ago to help seniors facing economic hardship access the equity in their homes. Between 1990 and 2010, more than 660,000 reverse mortgages were issued, according to the AARP. Today, the products are aggressively marketed through ads featuring Boomer-friendly spokespeople such as Henry Winkler (the Fonz from Happy Days). But these products are complicated, expensive and ripe for abuse, which lead a reader named Fred to ask:

"What is your opinion about reverse mortgages? So many financial planners are pushing this sort of thing, but I heard that fees are steep."

Home Equity Conversion Mortgage (HECMs) are the most popular reverse mortgage available. They are federally insured and offer certain borrower protections. Seniors who either own their homes outright or have low mortgage balances can take out reverse mortgages and convert their equity into cash -- either as a lump sum, monthly payment or line of credit, or some combination of the three.

There are no income or credit requirements, and the loan has no monthly payment. Instead, the lender pays the homeowner, and the reverse mortgage balance rises as a result, accruing interest and fees. Lenders get repaid when the owner either moves or dies, and the home is sold. HECMs are insured by the Federal Housing Administration, so if for the sale price of the home falls short of the loan amount, FHA pays the lender the difference.

"Reverse mortgages are full of pitfalls and they are very expensive -- but they are very valuable to the people for whom they work," says Margot Saunders, at counsel with the NCLC. "If you are sitting on a mortgage and you can afford to make payments on it, and have home equity and other assets, this is probably not a good idea. But if you are 85 years old and have $250 a month in income and a $500,000 house, it's a great idea no matter how much it costs, because the lender will give you money you don't otherwise have."

In short, these pricey loans can be a lifeline for low-income seniors. What they aren't is a cost-effective source of cash to buy sports cars or dream vacations, although the industry has aggressively marketed them that way. Lenders have also falsely pitched reverse mortgages as some kind of government benefit program, or part of the economic stimulus plan -- and been sued by states for doing so.

The amount someone can borrow depends on their age and the amount of equity in the home, but the maximum is $625,500. (The loan limit was raised in 2009 as part of the federal stimulus law and is set to expire Dec. 31, after which it reverts to $417,000.)

The Risky and Expensive Sides of the Lifeline

Reverse mortgages also come with hefty fees, which can run as high as 5% of your home's value by some estimates. The FHA charges everyone who gets one a mortgage insurance premium fee of either 0.01% or 2% up front, as well as ongoing annual fees. The HECM Saver loan, created in October 2010, has lower fees, but typically higher interest rates and more restrictions on borrowing. Consumers also have to pay a fee up front for third-party counseling to make sure they have a clear understanding of their options.

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Reverse Mortgage: Is it a Good Idea?

North Texas home foreclosures are continuing to retreat from the record highs set last year.

Foreclosure filings for September are down 19 percent from a year ago, the seventh month in a row that foreclosure postings in the Dallas-Fort Worth area have fallen year-over-year.

Foreclosure filings in the D-FW area have now been lower in 10 of the last 12 months, according to the latest data from Foreclosure Listing Service.

For next month’s foreclosure auctions, lenders have scheduled 4,774 homes for forced sale. So far in 2011, home foreclosure filings are down 12 percent from the same period last year.

“For the first time in 11 years, year-to-date residential postings declined,” said George Roddy, president of the Addison-based foreclosure tracking firm.

Some of the declines may be due to delays by lenders in processing the foreclosures, Roddy said.

Late loan payment rates, while improved from a year ago, remain high.

With September’s foreclosure sales filings, the biggest decline is in Denton County, where they are down 28 percent. Foreclosure postings were 19 percent lower in Dallas County.

So far in 2011, 42,380 homes in the four-county area have been threatened with foreclosure. That’s down from more than 48,000 foreclosure filings at the same time last year.

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NEW YORK (CNNMoney) -- Borrowers who were overcharged by Countrywide Financial more than three years ago are finally going to get what's due to them.

The Federal Trade Commission said Wednesday that, as a result of a settlement reached with the mortgage lender more than a year ago, it is sending out checks totalling nearly $108 million to more than 450,000 former Countrywide borrowers.

Full story

Susan Goldfarb of Albany, N.Y. spent last summer avoiding her backyard. "Our mosquito problems were just above and beyond," she says. "No matter what we did, from sprays to candles to bug zappers, we just couldn't get them to stop breeding in our yard all summer long." Goldfarb spent the winter reading up on ways to keep spring and summer rains from puddling in her yard. That way, by spring she was able to begin construction on a major home improvement: a drainage system.

Knowing what season-appropriate changes to make to your home is often hard to pinpoint. Here's a list of seven top home improvements, repairs, additions and adjustments to make to your home to get the most out of it, and out of spring!

Spring Home Improvement Ideas

NEW YORK (Money) -- My fiancé and I are saving up to buy a house in the not-too-distant future. We want to take advantage of the housing market, but he's skeptical about whether this is the best time to buy. When do you think prices will go up? -- S.R., Los Angeles

I can understand your fiancé's reluctance given that house prices continue to weaken. The S&P/Case-Shiller Home Price Index released last week showed that prices fell nationally in the first quarter of this year.

That's the third quarter in a row prices have dropped, taking them back to mid-2002 levels. Meanwhile, at the end of March the monthly index that tracks 20 large metro areas dipped below its previous low of April 2009, essentially confirming a double-dip in home prices for much of the country.

As for your city, Los Angeles, the stats weren't quite as bad as those of the 20-metro area index of which it's a part. Prices in L.A. still remain about 5% above their trough of May 2009, although they fell again in March, the eighth month in a row.

On a decidedly more positive note, though, your hometown did make our list of the Top 10 Turnaround Towns. Whether that turnaround will be in progress by the time you're ready to buy is anyone's guess.

But given the recent lackluster jobs report and the million-plus homes in foreclosure, I don't think anyone is expecting a robust about-face anytime soon. But that doesn't mean you and your hubby-to-be shouldn't be out scouting the market for a house to buy.

Full Story on CNN Money

NEW YORK (CNNMoney) -- Home prices are already a third off their highs, but this summer could bring the real discounts.

Buyers are still cautious, and anxious sellers will have to price aggressively to get them off the fence.

That could result in a "summer clearance sale," predicts Pete Flint, CEO of Trulia, the real estate web site.

"We don't imagine a stampede of buyers, like outside of Macy's on Black Friday," he said. "We see this more akin to January sales where retailers are trying to get rid of stock before it gets stale."

Several factors, he said, will lead to blow-out prices:

Accelerating price drops: Home prices have already reached their lowest level since the housing bubble burst, and are now at 2002 levels. Sellers will feel the pressure to make deals before their homes lose even more value.

Bloated inventory: There are boatloads of homes on the market, more than eight months worth at the current rate of sales. Many are distressed properties -- short sales and bank repossessions. Such homes are selling at discounts up to 50%.

Tight credit: Some homebuyers still can't obtain mortgages, limiting demand.

Unemployment: While the job picture has brightened, unemployment is still around 9%. People without jobs don't buy homes, obviously, but high unemployment also rattles working people. Lacking the confidence that their jobs are secure, they may not look to buy.

These forces could all come to a head this summer, according to Flint, because of the cyclical nature of homebuying. Buying takes off in spring as many young families hope to make their moves before the new school year.

"By the end of the homebuying season, sellers will become increasingly desperate," said Flint.

Full Story CNN Money

NEW YORK (CNNMoney) -- Malynda Williams didn't set out to be a real estate tycoon. But the 40-something has managed to acquire four properties over the past three years, and she's looking for more.

"I started out trying to get something going for after I retire," Williams said. "I never thought it would be this, but I really love it."

Her first buy came in October 2008, a vacation home on the Texas Gulf Coast, 225 miles south of her home base in College Station. She and husband John planned to retire there someday.

"My husband used to travel for work in the oil fields," she said. "We knew it was reasonable to buy a home there, and the people are so friendly."

They bought a four-bedroom place for $540,000 in Aransas pass near Rockport, a city of 8,000 residents on Aransas Bay.

The area boasts a nice beach and great fishing. Visitors from all over the world make it their base for trips to Aransas National Wildlife Refuge. Rockport is also home to many "winter Texans," northerners escaping the big chill.

John soon sold his business building natural gas facilities, and began spending time in Rockport. Malynda kept her retail consulting job for Xerox in College Station. To be able to stay in Rockport most of the time, she decided to install a home office and hired a cabinet maker to put it in.

The cabinet maker mentioned that he also builds vacation homes to rent, and a light bulb went off. "I can do that too," Williams said to herself.

Williams found a two-bedroom on the water for $250,000. It sleeps 12, has its own dock and provides easy access to great fishing waters. "There was very little work to do on it and the deal included the furnishings," Williams said. (Ask the Expert: 'Should I buy a vacation home?')

The next purchase was a five-bay storage property she bought for $119,000 in April 2010. She and John use it for their own stuff, but it came with a 750 square foot apartment, which she rents for $600 a month. (Latest home price forecasts in your area.)

The latest deal came this past winter and seemed, at first, like a steal. Williams paid just $140,000 for a six-bedroom, five-bath, "lodge-like" house a few blocks off the shore, but a problem cropped up.

"The home is 2,180 square feet," she said, "and 460 of that, right in the middle, was a mobile home. Its axles were rusting."

A previous owner, maybe two, must have expanded the living space of the mobile home by building wings all around it. Fixing the axles involves tearing out the core and rebuilding it. That will improve the house but cost upwards of $25,000.

Williams had been getting calls from renters since she first put the rental online in late March, at $1,800 a week and up. Now, she can't book until June when the repair is finished, so there's lost income.

She rents out the homes for short-stays -- weekends, weeks or months. That's more work, because she has to manage the bookings and supervise maintenance and cleaning crews. But it's also more profitable, as long as tourists keep coming.

She set the weekly rates at $900 to $1,500 for the two-bedroom, and the house has been booked about 70% of the time, bringing in $40,000 or so a year. Williams said that's enough to cover all expenses and turn a tidy profit.

That setback has not discouraged Williams. As early as later this year, she plans on adding to her five properties, which includes the old College Station residence, now rented out. She figures she can handle as many as 10.

She paid cash for her three of her acquisitions but she got the cash for the most recent by borrowing against the couple's investment portfolio of stocks and bonds.

That means lower closing costs, and the interest rate on the loan against her portfolio is less than that of a mortgage.

She has also started to manage vacation home rentals for other owners, which only adds lightly to her work, since she's already doing that for her own properties.

This new career will be a perfect retirement fit, she thinks, providing extra income and -- just as important -- fun.

"I can't be idle," she said, "and I don't want to be tied to a desk."

Full Story on CNN Money

(MONEY Magazine) -- If you're in the market to sell your home, you probably feel you can't catch a break. Nearly five years into the housing bust, when many experts thought the real estate market would at least have stabilized, sales and prices are still dropping in most of the country.

In February existing-home sales tumbled 9.6% from the previous month, and the median price of a single-family home dropped to $157,000 from $163,900 the previous year, according to the National Association of Realtors. (Latest home prices)

You can't count on things turning around soon, either. At the current sales pace, it would take 8.6 months to clear out the 3.5 million existing homes listed today.

With the boost from the recent homebuyer tax credit gone, anyone who decides or is forced to put a house up for sale enters a market where houses often linger a full six months -- even a year -- without any bites.

Put part of the blame on stiff competition: Foreclosures and short sales, which accounted for 39% of sales in February, sell for about 15% less than conventional homes.

"It's dreadful out there for sellers," says Patrick Newport, a U.S. economist at forecasting firm IHS Global Insight.

Fortunately, there is one glimmer of good news. Bargain hunters, too, know that home prices are down some 32% from their peak. In a recent CNNMoney survey, three-quarters said that it was a good time to buy a home. But translating that interest into an actual sale can require some extreme measures.

It's not enough to show buyers your house is a deal: You have to convince them it's a total steal. That means slashing your price, bringing in a pro to pretty it up, and creating a killer website for your home. Here's how to do it right.

Sellers are still loath to accept the extent of the toll the bust took on their homes' value, says Tara-Nicholle Nelson, consumer educator for the housing website Trulia.com.

Many also give in to the temptation to list the property above fair market value to see what happens. Big mistake. About a quarter of sellers in the past year initially listed too high and were forced to knock the price lower, according to Trulia.com. Even in cities that have held up well, such as Charlotte, 25% of sellers resort to at least one price cut, and often two.

6 cities slashing prices

Think you can always drop the price if your home doesn't sell? Bigger mistake.

"The first 30 days on the market are the most important," says Norwalk, Conn., realtor Elizabeth Kamar. That's when your place attracts the most attention and gets the most showings. The result: You often end up with less than you would have if you priced it right to begin with, says Kamar. So get aggressive right out of the gate.

Undercut your competition. In normal times listings of similar properties in your area would give you a good sense of what your home might sell for. Today there's a big gap between what sellers want and what buyers are willing to pay.

Instead, figure out what you can realistically expect to get by asking your realtor to show you what houses similar to yours have sold for in the past three to six months. If more than a couple of the comparable properties were foreclosures or short sales, look closely at the photos and descriptions of those former listings. Distressed homes should be included in your comps if they are in move-in condition, says Las Vegas realtor Paul Bell.

Once you have a handle on your likely sale price, list your home a bit beneath that, says Rockaway, N.J., agent Ellen Klein. You don't have to undercut by much to attract attention, because that price will probably still be about 10% or 15% below what other homes are listed for. Even if you're competing with lots of foreclosures and short sales, your price should generate enough interest to attract more than one bidder, pushing up the final price to where it should be.

When Dorchester, Mass., realtor Julie Simmons wanted to sell her own home in January, she listed it at $460,000, about $5,000 to $10,000 below what she thought she'd sell for.

"I knew I had to attract attention," she says. Even in a harsh winter, she received four offers in less than two weeks -- and sold for $465,000.

Take out the ax. No bites within 30 days? Make a big move.

"When a property sits, people start thinking it must be listed too high," says Klein. To stimulate interest, make a giant cut -- as much as 10% of the asking price, and even more in an area where prices are still falling. That should be enough to warrant a second look from buyers who passed the first time, and to bring in a new pool of potentials who are hunting in the lower price range.

Last year Montclair, N.J., empty nesters Peter and Lauren Meyer decided to downsize from their seven-bedroom home to an apartment in the same town. They put their home on the market for $1.1 million, more than their realtor suggested. Six months and four price cuts later they pulled it off the market at $889,000.

"At that point we wrestled with lowering the price further, but we were ready to move on," says Peter. The couple relisted their home for $799,000 and it sold for $808,000.

Play hardball. It's okay to reject low-ball offers if a buyer won't budge. But if a buyer is willing to negotiate, push aside feelings of anger or insult and start counteroffering, says Mabel Guzman, president of the Chicago Association of Realtors.

Ideally you'll be able to negotiate within $10,000 to $20,000 of an acceptable offer. Then, "using incentives as carrots and sticks can make it easier to reach an agreement," says Guzman. For example, if your buyer refuses to dicker, you might offer to leave behind the appliances. Or maybe you'd rather take the reduced price but have the buyer agree that you take 60 days, not 30, to move out.

There are people who want to sell, and there are people who have to sell. Kathy and Rex Roberts are among the latter. Based in West Hartford, Conn., the couple, who have two children, have been living in different cities since early December, when Rex, an IT auditor, started a new job in Silver Spring, Md., after a layoff.

Before and after: Manhattan loft makeover

Listed that same month, their solidly built three-bedroom 1956 colonial has had no offers, despite two price cuts (it's currently at $389,500). Between rent on Rex's new place and their carrying costs on the house, they're paying a budget-straining $4,000 a month. "We need to sell," says Rex, "but we're not willing to drop the price again."

So in March they tried something new: professional home staging. Staging, increasingly popular with homeowners trying to sell mid-range houses, can extend from simply rearranging existing furniture to repainting, replacing fixtures, and bringing in new furnishings. The goal: to highlight the house's best features while making it as easy as possible for buyers to imagine themselves living there. Veteran real estate brokers interviewed by MONEY say that proper staging can speed the sale and often increase the price too. The key is to get it done right.

Start with an open mind. Staging demands a psychological shift that many homeowners find challenging: thinking of your house not as your home but as a set. That means scrubbing away evidence that you actually live there. Your goal: the homey yet impersonal look of a Pottery Barn catalogue.

Find the right stager. The ASP (accredited staging professional) designation is a plus -- it indicates the stager has gone through some basic training -- but it isn't essential. Get names from realtors or at realestatestagingassociation.com, then review the stager's online portfolio of before-and-after photos. Next, call homeowner references and ask how fast their homes sold after staging and whether they think the work helped.

Establish a budget and ask the stager to work within it. Stagers typically charge $150 to $400 to walk through your home and give recommendations for each room. You can then execute the plan yourself or hire the stager to do it for an hourly fee, usually $100 or so, plus the cost of any new paint or furnishings.

If you make big changes, costs can add up -- but "I can often make a huge difference using what homeowners already have," says Mary D. Brooks, a stager and realtor from Breckenridge, Colo.

See whether your realtor will pay. If you're on the hook for a full 6% commission, you have significant negotiating power. "I'm happy to pay for staging because I know it works," says realtor Paul Aspelin of Victoria, Minn.

As for the Robertses, after getting advice from stager Kara Woods, owner of Stage to Move in Danbury, Conn., they painted their lavender dining room a soft gray and removed excess furniture, among other things; a professional stylist redid the living room (see above). "It's incredible how much bigger and more modern it looks," says Kathy.

These days it's going to take far more than a FOR SALE sign in the front yard and a spot on the multiple-listing service to get potential buyers in the door. That means getting the word out in a creative fashion -- and finding a realtor who is willing to do the same.

"The more eyeballs that get on the listing, the better," says Katie Curnutte of the real estate information website Zillow.com. To do that, you need a multipronged marketing plan of attack.

Create a great site. About 90% of buyers begin their search on the Internet, according to the National Association of Realtors. Make sure your home's online presence has a dozen or two photos: Having 20 instead of five photos will almost double the number of hits you'll get, according to Zillow.com. See the sidebar at right for more ways to keep potential buyers clicking on your site.

Vulture investors flipping their way to real estate profits

Throw money at them. Incentives can perk buyers' interest just as much as price cuts, says Matt Brown, director of business development at ForSaleByOwner.com. In fact, many buyers will agree to a higher price if their upfront costs are lowered, since they often run short on cash.

If you can afford it, offer to cover the buyer's closing costs or pay the first year's property taxes or condo or homeowner association dues. However, those freebies may be practically standard, particularly in areas rife with distressed properties.

In that case, says realtor Guzman, you might be able to bring buyers to the door by tossing in an unusual bonus, such as a $1,000 gift card (throw in one for the buyer's agent as well); a belonging they mentioned loving, such as the pool table or plasma TV; or a $5,000 credit to use in the home as they wish. (You can even pay upfront points so that they can get a lower mortgage rate, if you can swing it.)

Be aware, though, that you must disclose any such gifts or payments when the offer is agreed on, and some lenders will not approve them. If so, you might have to find another incentive that the bank doesn't object to.

Showcase super condition. Yes, some buyers are hunting for foreclosures in rough shape that they can nab for a song. Yet just as many shoppers don't want -- or don't know how -- to put in that sweat equity. So hire an inspector to identify every problem with the home, even seemingly minor issues such as dripping faucets, and fix them.

"If an outlet doesn't work, why get the buyer wondering what else is broken?" asks Beth Foley, an associate broker in Holland, Mich. Tell your realtor to give anyone who tours your home a copy of the inspection report and your list of fixes.

Spread the word online. Having your home listed on a major website like Realtor.com isn't enough. Ask your realtor if you'll get an "enhanced" listing on the site, where your home gets top promotional billing. Many realtors will create a website just for your home. You also want to get your listing on alternative sites like Craigslist or even Facebook.

In 2009, when Karen Mauro put her small, historic two-bedroom Orange County, Calif., home on the market she thought it would be a tough sale. Realtor Lisa Blanc listed the property at $467,500 and spread the word not only through the MLS listing but also with an update on her Facebook page. A Facebook friend of Blanc's passed the info to someone she knew was looking for that kind of house. Within a week, Mauro had an offer for $460,000.

Stay away -- far away. In better times you may not feel obliged to drop everything to accommodate prospective buyers' schedules. Today, if buyers can't get in on their time, they'll skip it, says Summer Greene, who manages realtors in the Fort Lauderdale area. So be prepared to show a perfectly clean home at a moment's notice. And disappear (along with your dog, if possible) for all showings and open houses so that prospects can imagine themselves in your house -- an impossible task when your family is vegging on the couch.

When Betty McCoy began showing her Prairie Village, Kans., three-bedroom Cape Cod - style house, for example, she kept a list of must-do chores -- including emptying wastebaskets, filling the dishwasher, and making the bed and walked out every morning with the place spotless. On the weekend she holed up at a local mall.

"Every time I thought I could go home, a new person wanted to see the house," recalls McCoy. But a few extra hours at the mall paid off in spades. In just a few days McCoy had an offer for her home -- for the full listing price. 

Full Story: CNN Money

For a long time I have resisted teaching & sharing Feng Shui for the worry that some people would see it as just plain weird.  Having practiced it fervently for the past two years I can no longer keep quiet. It has been a life changing experience & one worth sharing.  There are depths of the teaching that I too do not fully understand quite yet.  As a matter of fact, there are people that have dedicated their lives to learning it & still may not be masters.  I challenge you that if you have thought "that's just too much to learn" or "I don't have time to read all the books".... Don't let that stop you.  There are benefits to applying even some of the minor methods.  Over a period of time I will share more & more, but just for today I'll share a getting started point.

Like a breath of fresh air, with a little time & care you can improve the energy flow & over all "feel" of your space...  I definitely recommend it for home & work, but lets start with home.  What your eyes take in the moment you awake or walk in your door sets the tone for your inner peace or lack thereof.  Of course, I'm not referring to a spiritual peace, that can only come from God.  I am referring to the internal stress or aggrivation we feel when things are out of order.  If you do not feel that, then you may have gotten use to it & I would be willing to bet that your surroundings are chaos.  In this case people are blocking the feeling & that is an even deeper issue.

Lets begin with clutter.  Never underestimate the effect of clutter on your life.  Whenever I meet people that need my help in decor & they tell me they are "stuck" & just don't know where to begin, they are usually inendated with clutter. Where clutter accumulates, energy stagnates.  If you are wanting to go on the journey to a more peaceful, more serene you, then I urge you to begin clearing today.  In the first effort you should have an awareness of how many things you are moving & either move or discard twenty-five things.  Don't mull over each item, just getting moving with them..... Grab one... On to the next & so on! Moving energy is healthy energy. Just think what happens to a pool of still water... Soon it becomes murky & begins to smell. A lot of times people with all this "stuff" say that they can't find the desire to begin. They constantly feel tired. No wonder you are tired. You are sitting in a box of stagnant energy.  Just begin to move these things...especially the things that have no meaning & you will marvel at how light you will feel in body, mind, & spirit.

Source:

Living Free With Feng Shui

(c) Amanda Barker - All Rights Reserved

WASHINGTON (CNNMoney) -- The House passed a bill Tuesday to kill a signature Obama administration program that helps homeowners stay in their homes but has faced criticism as ineffective.

The House voted 252 to 170 to stop any new funding for the Home Affordable Modification Program (HAMP). Eleven Democrats joined Republicans to defund the program.

The program taps the federal bailout that saved the big banks, providing incentives to mortgage servicers to modify mortgages for borrowers behind on their payments.

"To many struggling Americans seeking permanent mortgage relief, HAMP offered little more than false hope. More homeowners have been kicked out of the program than have received permanent relief," Rep. Darrell Issa, the California Republican who chairs the House Oversight Committee, said in a statement.

The bill's path in the Senate is uncertain. President Obama has vowed to veto it.

Already, House Republicans have passed three other smaller programs designed to help families and neighborhoods dealing with foreclosure. What makes the HAMP program different is the widespread criticism it has received, from both Republicans and Democrats, for being ineffective.

"It would put an end to the poster child for failed federal foreclosure programs," said Rep. Judy Biggert, an Illinois Republican.

On Tuesday, 50 House Democrats wrote Treasury Secretary Tim Geithner a letter, urging him to reform the program, saying "HAMP must change to meet its potential."

"Yes, the HAMP program has a lot of problems," said Rep. Barney Frank, a Massachusetts Democrat, on the House floor. "But, the absence of any program leaves homeowners worse off."