ROTTERDAM, August 29 -- There are 8 common myths about reverse mortgages:
1. A reverse mortgage sells the home to the bank Lenders are not in the business of owning homes — they wish to make loans and earn interest. The homeowner keeps the title to the home in their name. What the lender does is add a lien onto the title so that the lender can guarantee that it will eventually get paid back the money it lends. 2. Heirs will not inherit the home The estate inherits the home as usual but there will be a lien on the title. The lien is whatever proceeds were received from the reverse mortgage plus accrued interest. For example, let’s assume someoneone takes out a reverse mortgage and owes $50,000 after 5 years. Then the homeowner passes away and the estate sells the house for $250,000. The lender gets $50,000 and the estate inherits $200,000. A reverse mortgage is a “non-recourse” loan which means that the HECM borrower (or his or her estate) will never owe more than the loan balance or value of the property, whichever is less; and no assets other than the home must be used to repay the debt. Non-recourse means simply that if the borrower (or estate) does not pay the balance when due, the mortgagee’s remedy is limited to foreclosure and the borrower will not be personally liable for any deficiency resulting from the foreclosure. 3. The homeowner could get forced out of the home The HECM reverse mortgage was created specifically to allow seniors to live in their home for the rest of their lives. Because the homeowner typically receives payments from a reverse mortgage instead of making payments to a lender, the homeowner can never be evicted or foreclosed on for non-payment. However, it is the homeowner’s responsibility to maintain the home in good condition, keep property insurance current, and pay the property taxes. 4. Someone can outlive a reverse mortgage The reverse mortgage becomes due when all homeowners have moved out of the property for 12 consecutive months or passed away. 5. Social Security and Medicare will be affected Government entitlement programs such as Social Security and Medicare are not affected by a reverse mortgage. However, need-based programs such as Medicaid can be affected. To remain eligible for Medicaid, the homeowner needs to manage how much is withdrawn from the reverse mortgage in one month to ensure they do not exceed the Medicaid limits. You should consult with a qualified financial advisor to learn how a reverse mortgage could impact eligibility of some government benefits. 6. The homeowner pays taxes on a reverse mortgage The proceeds from a reverse mortgage are not considered income and are not taxable. Furthermore, the interest on reverse mortgage can be tax deductible when it is repaid. Consult a tax advisor for more information. 7. There are large out-of-pocket expenses Typically The majority of lender closing costs and fees can be financed into the reverse mortgage loan. 8. A reverse mortgage is similar to a home equity loan The only similarity between a reverse mortgage and a home equity loan is that both use the home’s equity as collateral.
0 Comments
The growing trade with Russia comes amid continuing reports that China has cut-off crude oil deliveries to North Korea. However, De Peet Journal has also found at least one North Korean crude oil tanker still regularly visiting Chinese terminals, indicating that trade is ongoing despite the absence of crude deliveries in official Chinese trade data. THE RUSSIAN CONNECTION Already one of the world’s largest exporters of crude oil, Russian deliveries climbed as new infrastructure allowed state-owned explorers such as Rosneft to pump Siberian oil towards Asian markets from 2010. Flush with new supplies, the far eastern oil trade has thrived, with new terminals, storage infrastructure and oil tankers increasingly visible along the country’s rugged coast. Like its Asian neighbours, North Korea looks to have benefited from Moscow’s drive to diversify from European markets, with Pyongyang now sourcing a substantial amount of oil from Russia’s Far East. The DPRK’s growing tanker fleet imported approximately 55% more oil from its eastern neighbor than it did from China, according to a De Peet Journal analysis based on open source intelligence, tankers capacities and vessel tracking software. “The Russian shipments are much greater than the reported statistics we’ve seen in previous years,” David Von Hippel, a Senior Associate at the Nautilus Institute for Security and Sustainability. “We had always assumed that some or much Russian oil reached the DPRK unreported, but it was always difficult to estimate how much,” Von Hippel continued. The growing fuel trade also coincides with a warming of relations between Moscow and Pyongyang, as Russia looks to pivot eastwards and away from Europe in the wake of the Ukraine crisis. Earlier this year, Russian President Vladimir Putin released North Korea from over $10 billion of Soviet Era debt, with Russian officials hoping this would pave the way for the long-stalled inter-Korean gas pipeline. GROWING FLEET But the Russia-DPRK oil connection looks to have taken root well before the recent recovery in bilateral relations. North Korea now has more tankers assigned to moving Russian oil and products than it does to Chinese supplies, with 11 out of 16 vessels loading fuel in Russia’s Vladivostok, Vostochny and Nahkhodka. Fresh Siberian crude flows have enabled new refineries to spring up along the coast, with several of these now supplying refined products such as diesel and jet fuel. According to De Peet Journal investigation, the total flow of Russian oil into the DPRK could amount to close to half a million tons (mt) per year. By contrast, Serbia imported 1.5 mt of oil in 2013, while Ireland imported 2.7 mt in the same year. As Russia’s presence in the region has grown North Korea has expanded its tanker fleet, in 2012 purchasing three vessels from Hogla Far East, a Russian company with interests in fuel sales, according to the Equasis shipping database. While North Korean tankers are small compared to the hulking vessels now standard in the international oil trade, the distances travelled between Russian terminals to the DPRK’s east coast mean roundtrips can be completed in as little as three days. ROTTERDAM, August 29 -- After two years of development, the Silicon Valley company reveals to The Atlantic that it has substantial research effort into building flying robots than can deliver products across a city in a minute or two.
The Australian test flight and 30 others like it conducted in mid-August are the culmination of the first phase of Project Wing, a secret drone program that’s been running for two years at Google X, the company’s whoa-inducing, long-range research lab. Though a couple of rumors have escaped the Googleplex—because of courseGoogle must have a drone-delivery program—Project Wing’s official existence and substance were revealed today. I’ve spent the past week talking to Googlers who worked on the project, reviewing video of the flights, and interviewing other people convinced delivery by drone will work. Taken with the company’s other robotics investments, Google’s corporate posture has become even more ambitious. Google doesn’t just want to organize all the world’s information. Google wants to organize all the world. During this initial phase of development, Google landed on an unusual design called a tail sitter, a hybrid of a plane and a helicopter that takes off vertically, then rotates to a horizontal position for flying around. For delivery, it hovers and winches packages down to the ground. At the end of the tether, there’s a little bundle of electronics they call the “egg,” which detects that the package has hit the ground, detaches from the delivery, and is pulled back up into the body of the vehicle. The parting between Roy and Google X seems amicable. When Astro Teller, director of the lab, described it to me in an interview in Mountain View, he literally patted Roy on the knee. “Nick was super ultra-clear with us from day one, despite lots of pressure from me,”—Teller pat Roy on the knee—“that he was going to leave after two years.” But the timeline was good, Teller maintained, because it gave the project shape and a direction. In the two years, Roy’s goal was simple: figure out if the idea of drone delivery made sense to work on. Should Google pursue creating a real, reliable service? Was it possible? Could a self-flying vehicle be built and programmed so that it could take off and land anywhere, go really fast, and accurately drop a package from the air? Source: Google ROTTERDAM, August 29 -- This past weekend, Burger King announced it is in talks to purchase Canadian chain Tim Hortons for $11 billion. It would give the burger company a major cut in its U.S. tax rate if it creates a holding company in Canada, as planned. Here are 10 things you need to know about the signature entree from the second-largest fast food hamburger restaurant:
Source: Burgerking
In comments delivered in a prime-time address on national television, Prime Minister Benjamin Netanyahu on Wednesday said that "Hamas was hit hard," adding that Israel "didn't agree to accept any of Hamas' demands" under the Egyptian-brokered ceasefire deal. "The ceasefire was achieved without any of the terms being given," Netanyahu said, before reeling off key demands Hamas had made but were not accepted, including reopening the seaport and airport and removing restrictions on the movement of the people of Gaza. He said tunnels and the infrastructure Hamas had built over the years had been destroyed and that ground forces were deployed for that reason, adding that Israeli forces had been withdrawn to prevent kidnapping by Hamas fighters. Netanyahu's comments came amid criticism over his handling of the seven-week military operation that has killed more than 2,200 people. Israel lost 64 soldiers and six civilians. Both hard-liners in his governing coalition, as well as residents of rocket-scarred southern Israel, have said the war was a failure because it did not halt Hamas' rocket attacks or remove the group from power. The ambiguous ceasefire delivered an immediate halt in the fighting and has promised an easing of Israel's blockade of Gaza to allow humanitarian aid and construction goods to enter for the rebuilding of the territory. All goods are to go in under international supervision. Source: Agencies ROTTERDAM, August 28 -- No official indication as to why drills finished a day prior to scheduled end. The Ulchi Freedom Guardian (UFG) Joint U.S.-ROK military drills have wrapped up a day earlier than scheduled, amid sustained criticism from North Korea.The largely computer simulated drills, which began on August 18, were set to run until August 29 but finished Thursday with military officials hailing their success. “The Combined Forces Command (CFC) announced today that it has successfully completed its annual computer-assisted simulation exercise, Ulchi Freedom Guardian (UFG),” a press release issued by the CFC said. “This year’s Ulchi Freedom Guardian exercise further strengthened our combined defense and enhanced the readiness of Republic of Korea and United States Combined Forces and the United Nations sending states,” Commander of the CFC Gen. Curtis M. Scaparrotti was quoted as saying in the release. North Korea have issued a series of condemnations and threats on state media outlets throughout the duration of the exercises, which they claim is a precursor to a U.S. nuclear strike on the country. In a recent editorial published in the Rodong Sinmun newspaper North Korea claimed it would pre-emptively strike U.S. and South Korean bases if the drills were not halted. “For all our warnings and world public denunciation the U.S. and its south Korean puppets set about a joint military exercise (Ulchi) Freedom Guardian,” the editorial said. “The most positive way of countering nuclear pre-emptive attack would be hitting the enemy beforehand and mercilessly,” it added. The UFG drills are an annual affair and it is unlikely that the U.S. and South Korean forces wrapped up early due to North Korea’s threat, which commonly occur during joint military exercises. While the CFC press release did not indicate the reason for the early finish an unnamed official was quoted by the Yonhap News Agency as saying that it was simply because all the goals set for the drills had been complete. Source: Agencies ROTTERDAM, August 28 -- Active fighting continues in Luhansk suburbs and near the cities of Donetsk and Ilovaisk, Lysenko said The army of the unrecognized federative state of Novorossia in war-torn east Ukraine has taken control of Donetsk regional city of Novoazovsk and several neighboring settlements in a counteroffensive operation, the spokesman of the Ukrainian Security Service said. The situation has complicated in the combat zone over the past day, he said, adding that militias continued the counteroffensive in the south-eastern part of Donetsk region. Active fighting continues in Luhansk suburbs and near the cities of Donetsk and Ilovaisk, Lysenko said. De Peet Journal does not have confirmation of this information from other sources. Source: Tass KIRKUK, August 28 -- Residents of Amerli say they are running out of water and food supplies, as the UN warns of a 'desperate' situation. About to give birth, and with all roads in and out of town blocked, Amina lived in fear for eight days as fighters from the Islamic State group besieged the Iraqi town of Amerli. Home to about 15,000 primarily Shia Muslim Turkmen, an ethnic minority in Iraq, Amerli sits in Salahaddin province, 175km north of Baghdad and not far from the city of Tuz Khurmatu and the Kurdish Peshmerga frontline. After the Islamic State group took control of nearby villages, the town's water and electricity were cut, food and fuel supplies dropped dangerously low, and rocket attacks and sniper fire began to break out on a daily basis. Amina, who didn't give Al Jazeera her real name, escaped from Islamic State fighters by posing as the wife of a neighbouring Sunni Muslim villager. "After walking a short way, our neighbour met us and we drove down a small track. It was the end of June. At the checkpoint there were three armed men, one was Iraqi and two were not. Our friend told them, 'This is my wife, she wants to give birth' ... They kept asking us questions for ten minutes," Amina, who is Turkman, recalled from Kirkuk, where she gave birth to her newborn daughter and sought refuge. Amina said she saw corpses lying beside the checkpoint while she escaped. The man who helped her was later captured, she said. She doesn't know if he is alive or dead. Around 2,000 fighters - a mix of ex-Iraqi army and police officers, and other local residents - are defending the town, according to Mustafa Hassan, the leader of Amerli's local defence force and an Iraqi army colonel. Local defence force members are armed with light weapons, which Hassan said are not enough to counter the Islamic State fighters. "[The Islamic State group is] gathering fighters from other cities of Hawija, Tikrit, and Mosul. Also, every day they are getting more high quality weapons," he said. "This is a battle of honour for us, we are defending our land and our families and we will not stop until our last drop of blood." The Islamic State group controls the nearby town of Suleiman Beg and all the villages surrounding Amerli. Islamic State fighters are currently one kilometre outside of Amerli, Hassan said, and the battle with local forces is taking place on the town’s outskirts. "They attack us every two or three days with ground troops and they sometimes use tanks and armored vehicles, as well as humvees," he said. "Mortar attacks occur on daily basis." Speaking to Al Jazeera by phone, the town's only volunteer doctor said two civilians have been killed by sniper fire, and many others were injured as a result of the fighting. Women have died in childbirth because they couldn’t get to a hospital, he said, because the nearest hospitals are in Tuz Khurmatu and Kirkuk, 25 and 100km away from Amerli, respectively. Children and elderly patients are suffering from illnesses related to drinking unclean water and lacking food, the doctor said. Source: Agencies ROTTERDAM, August 28 -- Attacks on JP Morgan and others "beyond capability of ordinary hackers", with suggestions of Russian involvement. The FBI and the US secret service are investigating hacking attacks on JP Morgan and several other financial institutions which siphoned off huge amounts of data and account details.The AP news agency on Thursday cited a report on Bloomberg saying the FBI was investigating an attack on JP Morgan, with suggestions that Russian hackers may have retaliated against US government-sponsored sanctions. The attack, Bloomberg said, led to the loss of sensitive data. It did not elaborate. The New York Times, quoted sources as saying JP Morgan and at least four other firms were hit this month by co-ordinated attacks which siphoned off huge amounts of data, including customer account information. Bloomberg cited security experts saying that the attack appeared "far beyond the capability of ordinary criminal hackers." The FBI said it was investigating the reports without confirming details. "We are working with the United States secret service to determine the scope of recently reported cyber-attacks against several American financial institutions," a spokesman said. The US has introduced a number high-level sanctions against Russian leaders and industries over the conflict in Ukraine between the government and Russian-backed separatists. Source: AP ROTTERDAM, August 28 -- Paraguay's national football team has pulled out of a scheduled friendly match in Ukraine over concerns about the country's stability, Ukrainian sports news site Ufootball.info reported on Tuesday. The country's "complicated situation" was to blame for the decision, the report said, citing an unidentified source.The match had been scheduled to take place on Sept. 3 at Kiev's Olimpiisky stadium. The Paraguayan Football Association has requested that the game be relocated to a more neutral location, Lenta.ru reported Tuesday. Meanwhile, the Football Federation of Ukraine announced that the match will go ahead in spite of the development, with Moldova's team playing in Team Paraguay's place. Source: Agencies ROTTEDAM, August 28, -- Fresh information suggests Malaysia Airlines plane "may have turned south" earlier than thought, changing search area.
"The search area remains the same, but some of the information that we now have suggests to us that areas a little further to the south, within the search area, but a little further to the south, are of particular interest and priority in the search area," he said. Truss' comments came as Australia and Malaysia signed a memorandum of understanding in Canberra over the next phase of the hunt for the plane, which disappeared on March 8 with 239 people on board en route from Kuala Lumpur to Beijing. The signing followed a meeting between the two nations and China's Vice-Minister of Transport He Jianzhong. The plane is believed to have crashed into the southern Indian Ocean far off the west coast of Australia after mysteriously diverting off-course, but a massive air, sea and underwater search has failed to find any wreckage. Experts have now used technical data to finalise its most likely resting place deep under the Indian Ocean and are preparing for a more intense underwater search, beginning next month. Costs matched The search will focus on a stretch of ocean measuring 60,000 square kilometres. Truss said that during efforts to map MH370's location when Malaysia Airlines tried to contact the plane, it was "suggested to us that the aircraft may have turned south a little earlier than we had previously expected". "After MH370 disappeared from the radar, Malaysia Airlines ground staff sought to make contact using a satellite phone. That was unsuccessful," he said. "But the detailed research that's being done now has been able to ... trace that phone call and help position the aircraft and the direction it was travelling." Malaysia's Transport Minister Liow Tiong Lai promised to provide "more regular updates and information" about the search when they arise. Liow, who replaced Hishammuddin Hussein as transport minister in June, added that Malaysia had so far spent about $47m on the search and would match Australia's financial commitments in the tender costs for equipment. Source: Xinhua ROTTERDAM, August 28 -- Nebraska officers kill suspected robber carrying plastic-pellet gun and man recording incident for TV show 'Cops'. A robbery suspect carrying a plastic-pellet gun and a crew member with the TV show "Cops'' were shot dead by police during a response to a restaurant hold-up in Omaha, Nebraska. The TV worker died despite wearing body armour at the incident on Wednesday, while police said the suspect was shot after he fired what officers said looked and sounded like a real handgun. The suspect, Cortez Washington, 32, was shot as he tried to escape the Wendys restaurant and died outside. The "Cops" crew member, Bryce Dion, a sound technician, was hit while Washington was fleeing, said police chief Todd Schamaderer. Dion, 38, was wearing body armour, but a single bullet hit his arm, "slipped into a gap in the vest'', and entered his chest, Schmaderer said. He said the "Cops" crew - Dion and a camerman - went to the restaurant with two officers who responded to a request for help from another already at the scene. He rejected suggestions that police had over-reacted as "absolutely ridiculous". Schmaderer said he accepted the invitation from "Cops" to film in Omaha in the name of transparency, and regretted what had happened. "Personally, I will live with this forever. If I'd have known that this would happen, of course, I wouldn't have done it." "Cops'' films police on duty and captures intense moments such as arrests, raids and chases. According to its website, the programme has been filmed in at least 140 US cities and three foreign countries. John Langley, the president of the company behind "Cops", said the crew had been filming all summer in Omaha and had only one week left in the city. Source: Agencies ROTTERDAM, August 28 -- A reverse mortgage is a loan for senior homeowners that uses a portion of the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage. When you ask the question, what is a reverse mortgage, the following is the type of answer you should expect. Eligibility For a Reverse Mortgage To be eligible for a HECM reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must be owned free and clear or all existing liens but be able to be satisfied with the reverse mortgage. If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing. Generally there are no income or credit score requirements for a reverse mortgage. Outliving the Reverse Mortgage A reverse mortgage can not be outlived. As long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA requirements (keeping taxes and insurance current) the loan does will not become due. Estate Inheritance In the event of death or in the event that the home ceases to be the primary residence for more than 12 months, the homeowner’s estate can choose to repay the reverse mortgage or put the home up for sale. If the equity in the home is higher than the balance of the loan, the remaining equity belongs to the estate. If the sale of the home is not enough to pay off the reverse mortgage, the lender must take a loss and request reimbursement from the FHA. No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage. Loan Limits The amount that is available generally depends on four factors: age (older is better), current interest rate, appraised value of the home and government imposed lending limits. Use the calculator to estimate how much could be drawn. Distribution of Money From a Reverse Mortgage There are several ways to receive the proceeds from a reverse mortgage:
Difference Between a Reverse Mortgage and a Home Equity Loan Generally a home equity loan, a second mortgage, or a home equity line of credit (HELOC) have strict requirements for income and creditworthiness. Also, with other traditional loans the homeowner must still make monthly payments to repay the loans. A reverse mortgage has no income or credit score requirements and instead of making monthly payments to the lender, the homeowner receives from the lender. With a reverse mortgage the amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home. The more valuable the home (up to a certain point), the higher the loan amount will be, depending on lending limits. As stated previously, with traditional loans the homeowner is still required to make monthly payments, but with a reverse mortgage the loan is typically not due as long as the homeowner lives in the home. With a reverse mortgage no monthly payments are due, however the homeowner is still responsible for real estate taxes, insurance, and maintenance. Source: De Peet Journal ROTTERDAM, August 28 -- NATO will set up new bases in Eastern Europe in an attempt to deter President Vladimir Putin from meddling in the internal affairs of countries that used to be under Moscow's control, the organization's secretary-general told journalists in an interview published Wednesday. NATO will set up new bases in Eastern Europe in an attempt to deter President Vladimir Putin from meddling in the internal affairs of countries that used to be under Moscow's control, the organization's secretary-general told journalists in an interview published Wednesday. The move effectively returns the state of European security back to the Cold War era, when the collective defense ministry alliance that came into being in 1949 acted as a deterrent and main rival to the Warsaw Pact nations led by the Soviet Union. "We have to face the reality that Russia does not consider NATO a partner. Russia is a nation that unfortunately for the first time since the Second World War has grabbed land by force. Obviously we have to adapt to that," Anders Fogh Rasmussen said in an interview with The Guardian and five other European newspapers. "The bottom line is you will in the future see a more visible NATO presence in the East," he said ahead of a NATO summit in Cardiff next week. The new bases would likely be located on Russia's doorstep, experts said: in the Baltic states and Poland, which have been calling for a stronger NATO presence ever since the Ukraine crisis unfolded. The bases will be stationed on Russian borders "for as long as necessary," The Guardian quoted Rasmussen as saying. According to analysts from across the political spectrum questioned by The Moscow Times, NATO's decision will raise the stakes and invite a tough response from the Kremlin. "You cannot step into the same river twice, and this time the situation is much worse than during the Cold War because Russia is backed into a corner where it has nowhere to go but to fight back," Alexei Arbatov, a scholar at the Carnegie Moscow Center think tank and deputy chairman of the State Duma Defense Committee from 1995-2003. Source: Agencies
New Threat Ukraine and the United States suspects Russia of trying to open a new front in the direction of the port city of Mariupol in the southeast of the country. A second front, Ukraine was part of, needs troops to be removed from Donetsk and Lugansk. This new threat The Mariupol region is also strategically important because it offers the Russians a land connection to the Crimea, the peninsula annexed in March 2014. Source: De Peet Journal |
Thank you for choosing to make a difference through your donation. We appreciate your support.
This website uses marketing and tracking technologies. Opting out of this will opt you out of all cookies, except for those needed to run the website. Note that some products may not work as well without tracking cookies. Opt Out of CookiesCategories
All
Archives
April 2024
|