I ran across another great article from the National Care Planning Council, of which I am a member. As our population ages, more and more seniors will require assistance in the home, and modifications of their homes. This provides challenges for the kids, and opportunities for senior service providers. The article below gives some great advice.
In addition, accessing the equity of their home with a Reverse Mortgage can help the seniors stay in their home longer by providing the funds to pay for senior friendly remodels, or for in-home care.
To learn more about an Oregon Reverse Mortgage, click here: Reverse Mortgage Facts.
Keeping Mom and Dad Safe at Home
Generally, elderly parents want to remain living in their own home. However, remaining in the home becomes a concern when children see their parents slowing down, perhaps even having trouble with handling stairs and doing general daily activities. Yet, with parents’ mental and physical health currently not creating problems, there seems to be no imminent need to search out support services or other accommodations for aging parents.
This is now the time to evaluate the home to make it safe and secure for your loved ones — now and in the near future — in anticipation of aging disabilities that may occur. Help and support are available. The nation as a whole is more aware of elderly needs and services and products are becoming available at an outstanding pace.
The Bureau of Labor Statistics states,
“Employment of personal and home care aides is projected to grow by 51 percent between 2006 and 2016, which is much faster than the average for all occupations. The expected growth is due, in large part, to the projected rise in the number of elderly people, an age group that often has mounting health problems and that needs some assistance with daily activities.” Bureau of labor Statistics-Occupational Outlook Handbook, 2008-09 Edition
This growing need for aides and services also encompasses
Where do you begin to make sure your elderly family member is safe and managing well in his or her home?
Visit often and at different times of the day and night. Make note of daily activities that appear challenging and where changes might be made to add safety and convenience. Remove rugs that slide — causing a fall — and move furniture with sharp edges. Set the water heater at a lower temperature. This will protect their older sensitive skin from scalds and burns. Be sure smoke detectors and carbon monoxide detectors are in place.
Bathrooms are a hazard area for the elderly. Grab bars by the toilet and shower are a must to help prevent falls. There are easy to install bars at your local hardware store if you want to do the work yourself. Another item that is good to have is a shower stool or chair.
If you are not sure of what needs to be done, consider hiring a professional. There are companies that specialize in home remodeling and accommodation for seniors. Michelle Graham of Accessible Design by Studio G4 says about senior home remodel projects,
“The main thing we incorporate in all of our projects is a careful study of needs and potential needs that may develop throughout a client’s lifespan.”
Keep in mind what future home adjustments might be needed for your parents to “age in place” in their home.
Home safety or medical alert companies provide GPS-based bracelets or pendants to track the elderly at home who tend to wander. Or the companies may provide alarm devices such as pendants or bracelets which allow the elderly to alert someone if there has been a fall or a sudden health-related attack. In the event an alarm has been triggered, a 24 hour monitoring service will alert the family or medical emergency services or call a neighbor depending on previous instructions. In addition there are companies that will install motion sensors in the home to monitor the elderly on a 24 hour basis.
Don’t forget your parents’ community as a valuable resource for helping them stay in their home. Take Margaret Muller as an example. At 82 years of age, Margaret lives alone in her small home. She manages very well with the help of her local Senior Center. The Center’s “Senior Companion” program sees that Margaret is taken to the store for groceries and other needs and checks in with her often to see how she is doing. Once a day, the Senior Center delivers a hot healthy meal to her door. Having these services and visits gives Margaret the help she needs and peace of mind that she is not alone.
Neighbors, local church groups, senior centers and city centers are some places to look for assistance. Most of the time there is little or no cost for these services.
Your state aging services unit is a valuable community resource. The National Area on Aging website www.aoa.gov states:
“AoA, through the Older Americans Act and other legislation, supports programs that help older adults maintain their independence and dignity in their homes and communities. In addition AoA provides funding for a range of supports to family caregivers.” Some of the programs the site lists are: “Supportive Services and Senior Centers Nutrition Services National Family Caregiver Support Program Grants for Native Americans Nursing Home Diversion Grants Aging & Disability Resource Centers Evidence-Based Disease Prevention Long-Term Care Planning Alzheimer’s Disease Grants Naturally Occurring Retirement Communities”
“AoA, through the Older Americans Act and other legislation, supports programs that help older adults maintain their independence and dignity in their homes and communities. In addition AoA provides funding for a range of supports to family caregivers.”
Some of the programs the site lists are:
“Supportive Services and Senior Centers
Nutrition Services
National Family Caregiver Support Program
Grants for Native Americans
Nursing Home Diversion Grants
Aging & Disability Resource Centers
Evidence-Based Disease Prevention
Long-Term Care Planning
Alzheimer’s Disease Grants
Naturally Occurring Retirement Communities”
A few thoughts on hiring home care aides or live-in care givers.
The classifieds are filled with people looking for work as aides to the elderly. Many of these aides are well-qualified, honest people who will do a good job; but, of course, there will be some not so reputable. If you are looking to hire someone, be sure you interview and check references and qualifications. You will be responsible for scheduling that person and doing payroll and taxes as well. Be very sure you hire someone trustworthy, as the elderly seem to trust these helpers more than they should and therefore can easily be taken advantage of.
A professional home care service will eliminate your employment concerns. Professionally-provided aides are usually bonded and service is guaranteed. Home care companies take care of the scheduling and payment of their employees. Home care companies cater to the elderly in their homes by offering a variety of services. The National Care Planning Council lists many of these companies throughout the country on its website www.longtermcarelink.net .
These providers represent a rapidly growing trend to allow people needing help with long term care to remain in their home or in the community instead of going to a care facility. The services offered may include:
Thomas Day, Director of the National Care Planning Council states,
“Care in the home provided by a spouse or a child is the most common form of long-term care in this country. About 73% of all long term care is provided in the home environment typically by family caregivers.”
As their caregiver, you can make the difference in the quality of life for your aging parents and if staying in their home is a possibility, you have the resources to make it happen.
A Reverse Mortgage can be helpful to help pay for these expenses if there are not other funds available. Feel free to contact me if you have any questions regarding whether or not a Reverse Mortgage is right for your situation.
Larry Morris, CMPS www.PDX-Mortgage.com www.OregonReverseMortgageNews.com larry@PDX-Mortgage.com 503-431-0096
3.9% of Oregon’s 1st mortgages were at least 30 days late and 1.3% of Oregon homes were in foreclosure in the 3rd quarter of 2008 according to an article in today’s Oregonian, More Oregonians late on Mortgages by Ryan Frank. While these are alarming figures, the upside is that we are still doing better than most of the rest of the country.
I tried to find information on how many of these homes are owned by senior citizens and was unsuccessful. However, I would imagine that the numbers are high. Many seniors are on fixed incomes and if this income is tied to investments, they have seen a reduction in their assets. Many who were able to live off of the interest from these accounts are now having to withdrawal principle.
One of the areas that we are a little luckier then the rest of the country is that our home values have not decreased at much as many other states. According to the Oregon Economics Blog, aside from Medford and Bend we are doing better than the national average.
With foreclosures rising and home values decreasing, we are seeing a nasty trend. When a home goes into foreclosure, it is often sold for less then it is worth. This drives the value of the homes in the surrounding area down, which makes it harder for those owners to sell or refinance. If they are on the verge of not being able to make their payments, this can often result in yet another foreclosure, driving home values down further.
Since many Oregon seniors purchased their homes prior to the boom times of the last few years, and have equity in their homes, they have options that many of their peers in some of the harder hit states do not. Seniors age 62 and older may qualify for a Government Insured Reverse Mortgage.
Structured correctly, a Reverse Mortgage can provide a life line in these chaotic times. Whether it is to pay off the current mortgage, freeing up $500 to $200 per month in mortgage payments that no longer need to be paid, or to provide additional funds to make ends meet on a monthly basis, a Reverse Mortgage might be right for you or your loved ones.
Give me a call if you have any questions regarding your situation or the situation of a loved one.
Larry: 503-421-0096
As of 1/1/2009, seniors age 62 and older can use a federally insured Reverse Mortgage to purchase a home. Under the same HECM program that is being used by many seniors to access the cash equity in their home, seniors now have another tool to use when they look at purchasing a new home.
The FHA insured HECM is a huge improvement to the old Fannie Mae Homekeeper that could be used to purchase a home.
As it currently stands, a senior looking to purchase a home would either have to pay cash or qualify for a mortgage based on their fixed income. For many, this would liquidate their savings or prevent them from buying a home that they felt comfortable living in.
With the new program, a senior could either purchase more home without having a monthly mortgage payment, or free up a significant amount of their cash to live on or invest elsewhere.
While we don’t know all of the details, we can assume that the lending limits for purchases will be similar to the limits for refinances. If so, here are some examples of what you could expect:
A 62 year old borrower could purchase a $250,000 home with an approximate down payment of $120,000. There would be a lien against the property, but there would be no monthly mortgage payment. As with a reverse mortgage used for a refinance, the loan, plus interest would be due and payable upon death or 1 year after moving out of the property.
If this same borrower was 75, the $250,000 home would require a down payment of approximately $90,000.
Look for more details here as the dust settles. Technically, we can’t even take an application until 1/1/09, so I don’t have a calculator that will give me more exact figures.
That said, if you are a senior, and looking at purchasing a home next year, you should at least consider using a Reverse Mortgage.
Call me, Larry, if you have any questions. 503-421-0096
