Mr
Harney and Professor White,
I was so relieved to find your article featured in the Nations Housing section of the
Los Angeles Times dated November 29, 2009 . Professor White's courage to speak out and encourage at risk seniors to walk away from their dead end mortgages in lieu of their mental and emotional health was inspirational. I am a single homeschooling/ mom/ business owner who recently became a precinct committeemen (PC) for
LD22 in Gilbert, Arizona.
Over twenty years ago, I became involved with the winter visitor industry through a part time job when I came to Arizona to go to college. In 1994 I founded a unique organization that specifically catered to the needs of the 55+ retirement and vacation housing market in Arizona. I became involved with many of the entry point organizations in Arizona such as the Chambers of Commerce, Office of Tourism, BBB and my company has served as a resource for centralized information about these types of communities. Although, I cringe at our declining home values (and do everything in my power to sell homes), I am so grateful for our senior market or I wouldn't be in this business.
I believe in Arizona and love it here and want to see our economy thrive but , as God fearing United States citizens, there are lines we must learn not to cross. Over the years I have struggled to survive as a small business owner; up against the corporate giants in our industry who abuse seniors, monopolize the marketplace and blatantly violate federal anti-trust laws with no consequence. (See my blog article;
Consumer Rights by Community Type).
Even though there are several well managed communities in this industry whose owners still have a "heart toward seniors", they are becoming more obsolete due to the bottom line tactics of money changer, depreciation seeking, safe harbor investors and other out of state corporations that control the lobby power and laws in Arizona.Since the beginning of this last year, I have personally come in contact with dozens of retirees who are struggling with the very issues you presented in your article.The evolution and expansion of the senior housing market in Arizona has stemmed widely from the influx of out of state retirees over the last few decades.
A large percentage of our states residents and registered voters initially began their adventures to Arizona as seasonal guests (Snowbirds), but ended up here on a permanent basis even if though many still take their
RV's to Minnesota in the summertime. These "visitors" have brought billions of dollars to our state in sales tax and property taxes for homes they own even if it's not affixed to the land. Even though the vacation and retirement housing industry is appealing to those with an ability to have a second home, it also can serve as an affordable housing option for those on fixed incomes.
One gentleman bought a park model with his wife when they first retired but when she died he came here permanently to have the fellowship he found in the 55+ community.Retirees who relocate here may start off with a "park model/RV" or manufactured home in a "leased land" community and then invest in various types of real estate for permanent residences. Since I have worked with retirees from these various segments of the retirement industry, my entire adult life over the last two decades, I would like to share a deeper perspective supporting the issues you touched upon in the article.
I stand in reverence toward our seniors and am so grateful I have had the honor and unique experience of hearing the life stories of thousands of retirees, veterans and others who frequent our state from all over the United States and Canada. In 1994 I started the first property management company which specializes in locating and managing this specific type of housing in the 55+ Active Retirement Communities. I later became a park model and manufactured housing broker specializing in resales of existing "winter homes". I am also now a licensed Arizona Realtor®, and am now able to facilitate the entire spectrum within this specific market.
In 2004 I was contracted as a research specialist and consultant for a very large Chicago based corporation with land lease community holdings throughout the United States. The research project resulted in a special meeting and presentation for their investors and corporate officers. This corporation wanted to position itself to capture the up and coming "baby boomer' market which would "phase out" the older generation in the years to come. This engagement resulted in my being flown to Florida to present an independent low budget film I produced and an article later published and featured in a national senior housing magazine in 2006 entitled:
"What the bleep do boomers want'?In my efforts to determine the buying trends of boomers compared to the prior generations for this commission, I embarked on an amazing adventure into the psyches of seniors and interviewed dozens of retirees and included the perspectives from a few of those directly involved with this specialized market including Jay Butler, Director of Realty Studies at Arizona State University
(please see his most recent findings). The experience of this project gave me an even more intimate understanding of the social dynamic and motivations of retirees which could be understood a little better and I was able to cross reference predictable market behavior by understanding the various generations and demographics.
As I studied and researched the historic
socio-economic-cultural mindset dynamic and market triggers it was also made clear to me many of the core issues our seniors must now face to survive and exalt themselves from the mucky water. Specifically these include overcoming shame, fear of shame, religious belief systems, attitudes of entitlement, feelings of helplessness and learning the difference between personal responsibility and co-dependent relationships with authority figures. They must now pray for the willingness to stand up for themselves and find power in numbers, instead of bowing out of the responsibility they must take for their own lives.
One of my clients lives in a small manufactured home on a "little piece of heaven" in Apache Junction, she and her husband purchased before he passed away. She couldn't live in a 55+ community because she has chosen to raise her grandson whose mother died of a drug overdose. She said she couldn't understand why two of her children were so successful while the other one became another statistic of the disease of addiction. I explained to her during our first meeting that I was working on a amateur documentary about our nations snowbirds and asked her if she would be willing to share her perspective on where our country stood.
Her thoughtful reply was; "I feel like where our generation went wrong was trying to provide too much to our children (the boomers-italics mine) so they wouldn't have to do without like we did". As we continued in our conversation she wistfully recollected and shared what she remembered as a little girl around the time of the Great Depression. Her family became farmers to survive and provide for themselves. She explained how staples were rationed and stamps were traded for shoes. She said she feels like their generation "helped to create the current problems by giving their children what it took lifetimes for them accumulate". Further she admitted; "We made it too easy for them, and now they feel entitled to it'". I will most likely be forced to work with a cash buyer or investor for her property because land home financing is now almost non-existent.
My "Baby Boomer Research Project" of 2004 resulted in the identification of three specific "generational "groups/sets which the latter I was able to further identify by subsets. The three groups include; the Bob Hope Generation (Depression Era),
SED Generation (Sinatra, Elvis, James Dean) and Baby Boomers. You might be interested in some of
the findings outlined in this article. Currently, I am a personal witness to massive amounts of evidence that support many of the points you made in the article that could pose an even more serious threat to our seniors that we realize.Certain sects of retirees, depending on their upbringing, social norms, family values, memory and internalization levels of shame associated with their parents struggles during the Great Depression, are the ones who seem to be suffering the most.
They struggle with so much shame and guilt it is horrifying to watch. I find myself wearing many hats these days including that of a life coach/housing-grief counselor for so many seeking "permission" to move on as they struggle with their image of themselves as "bad stewards", taking on the responsibility of the current housing crisis.As I speak with them, it appears that even if they realize that they are not the ones who caused it, they still believe that they should "weather out the storm" and "take care of their business" all the while their retirement savings accounts dwindle away.
Many buy into the bullshit that it would be morally wrong to take care of themselves and instead believe that doing so would be contributing to the demise of their neighbors home values.Specifically, many of this group are retired farmers or other "lay people" that spent their time planting and harvesting, spending time with their families, working so hard to save up to pay for college and retirement that they had always hired "professionals" to take care of their financial affairs. It seems they haven't been able to process through the harsh reality that in many cases they are trading their financial futures for no chance of recouping their lost equity while they are still alive.Not only are they stressed out, they are also completely disoriented because they never dreamed they would be losing their retirement nest eggs, pensions, 401K's and homes!
These retired veterans, farmers, postal workers, teachers and so many others in this generation remain silent because they were taught not to burden others with their problems. By not sharing their pain, the shame and isolation they experience results in so much stress and constant worry that many now take anti-depressants or anti-anxiety medication. For example, last year, I came in contact with a retired GM worker that while GM was deciding whether or not to file bankruptcy, he could not even get out of bed for weeks as he suffered from depression that bordered suicidal tendencies.Others have taken their own lives.We have a moral and ethical responsibility to do something about this atrocity. We have an obligation to provide to them what they have given to America their whole lives. We must be good shepherd with our seniors. They need us more than ever. What I am witnessing angers and saddens me beyond words because there is such an evil criminal element to what is happening.
These are the ones who fought our wars, modeled family and fellowship values, volunteered and continue to be used as the scape goat to shoulder the brunt of greed and corruption. These are the ones who only paid cash for what they bought, never over extended on credit or bought things they "couldn't afford". In fact, one couple paid cash for the house they purchased in Arizona but then later refinanced to extract enough money to hand over to medical providers to cover the the discrepancy in cost between what was "covered" by their health insurance for an open heart surgery and what was billed by the various providers and institutions involved. Fortunately for them, they had a wise attorney adviser who encouraged them to file bankruptcy before they lost their livelihood completely.The responsible retirees in our country may not be the reason we are in this economic mess but they are still the ones being used by government powers to manipulate the marketplace.
I feel an obligation to assist these folks by using my creative thinking skills to develop emotional support networks and opportunities to understand the larger "ugly" picture of things and not feel responsible for it.Even though seniors are a fast growing group utilizing the Internet as an information source, there are still countless people in the older generation who are not computer or Internet savvy and don't really want to be. They may lack digital exposure to free speech and freedom of the press as so much is automated these days. They may not have access to personal Blogs or other research findings that are not yet completely under control by government and wall street. They need face to face contact!Now, as we witness the speedy money printing press at work, the eventual interest rate hikes, additional job losses, transfers and nearing 5 and 7 Year Adjustable Rate Mortgage (ARM) expiration's will surely spur even more defaults in higher risk "sub-prime" neighborhoods where risky loans were sold between 2002 and 2006.
Rental property supply is on the increase and transient residency will follow. Investment companies are so eager to fill their new found short sale and
REO acquisitions with warm bodies, they often market specifically to felons and those with bad credit willing to pay a higher rental rate and who probably do not share the older generations value system and pride of ownership. (At least in most manufactured housing communities, there is a criminal background check requirement).
As a Realtor and ex-loan officer wading my way through the short sale and
REO swampy landscape, I find myself interviewing every agent and broker with whom I come in contact to gauge the marketplace from their point of view. One of the investment brokerage firms I spoke with yesterday told me that cash investors are beating out legitimate FHA qualified buyers with LS R's and proof of funds for short sales and foreclosures due to their "30% greater chance for closing" even if the cash buyer is offering 20K less for the same property! There is no doubt, this will further increase the supply of available rentals, lessen the supply of lower income properties available for primary residency we need to build relationship longevity in our
communties to help them feel safe and build confidence in the market.
I am currently assisting in the formation of a private housing industry organization through a grass roots effort. The group of people that will make up this organization will consists of members that represent small business, retirement community residents, community owners, health and wellness professionals, educators, and professionals from within the estate planning, finance and real estate industries with solid and verifiable levels of integrity.We are combining efforts with the non-
Partison Tea Party groups to begin the process of education and empowerment for our seniors as well as other Arizona residents. We do not need to wait for authorized non-profit groups or government endorsed entities/agencies to do this for us.
We need to take responsibility for our own communities NOW! My opinion is that the real estate and investment markets are being manipulated and controlled by greedy criminal bankers involved with the
Bilderburg Group,
Council on Foreign Relations (CFR) and Federal Reserve. Many people don't even realize that the Federal Reserve is a private entity controlling the market with their finger on the interest rate button and that they are not accountable to anyone. A couple of months ago, President Obama announced that he was putting the Federal Reserve in charge of the oversight of Wall Street. What a joke!Consumers are being controlled because they have been conditioned to believe what they read and see in media. Many seniors are dependent on Social Security and Medicare to survive so they want to believe in the ones giving them their handout. They have been taught to think the best in people and to be trustworthy. Fascism and oligarchy have taken over in the guise of "Free Market" and Capitalism. Limited education and awareness about the whole intricate dynamic of corruption that currently exists is tragic.
They believe and want to pass on the message that says; things are getting better, just hold on. Since I work in the 55+ land lease industry and offer affordable housing options to Arizona residents and out of state retirees, I am seeing a buying trend of exactly what you have indicated as presented in this article. I have made special provisions within the residency and qualification process required by most of the communities where relationships with decision makers serve to maintain a personal override mechanism to qualify seniors seeking residency "approval" in a 55+ land lease community on a case by case basis. By maintaining a more personal approach, managers can decide to make allowances for those with lower credit scores taking into consideration their historical payment history rather than declining their application because a mindless software program "kicked them" out and disqualified them due to internal red flag mechanisms built into the programming triggered by certain items being detected in various field of their credit reports.
So much of the waste and bureaucracy happens because we count on machines to do for us what we should be doing for ourselves and each other. We need to override the robotic systems now in place that are being given the control to steer destinies of thousands of hard working or retired responsible Americans.
I am a citizen of Gilbert, AZ and a member of the Gilbert Tea Party movement. We are working together to find creative means by which to educate and empower our communities in Arizona through "privatized" community based programs, lectures and workshops. Our next speaker meeting will be held on January 26, 2010. Stay tuned to my blog for updates on location as the Tea Party group has gotten too big for it's previous venue so efforts are being made for a assembly hall with greater capacity. The upcoming speakers include other Arizona residents and pioneers who care about preserving life, liberty and the pursuit of happiness. One of our feature speakers is State Senator John
Huppenthal who has helped to pass the most massive legislation protecting Second Amendment Rights and Choice in Education. I will be supporting Senator John
Huppenthal for
Superintendent of Public Instruction in the next election. I am currently collecting "Clean Election Forms" and $5 contributions and a petition to get his name on the ballot. Our January topic will include; Choice, Safety and Responsibility in Education.
We will also be presenting another guest speaker that same night;
Holly Craw who is a leader in the home school movement and is beginning a monthly homeschooling orientation workshop for those interested in exploring that option. Kim Grady, the State Coordinator for the
Second Amendment Sisters will also be presenting information about an initiative to improve gun safety and education in schools. A cooperative effort has been formed between the Second Amendment Sisters, the Arizona Civil Defence League
http://www.azcdl.gov/ , Rob Potter, certified instructor by NRA and founder of Shoot Right to draft and get sponsorship to amend existing legislation to improve standards, access and experiential learning at it relates to safety and education.
By combining and coordinating our efforts within various segments of industry, neighborhood by neighborhood, we can create a support network for our communities, utilizing our local schools and churches as meeting halls. Outreach committes can be formed to locate higher risk individuals and neighborhoods, which often include seniors and/or single parents who are getting lost in the shuffle. By utilizing a precinct model (Thanks GOP), subdivision captains will serve to direct and coordinate efforts within a 1-3 mile radius of where these workshops will be held.
We must act quickly to facilitate these resources to at risk neighborhoods designed to empower the general public by encouraging personal responsibility in it's truest sense. The seminars will be offered free of charge and will include a critical support group element for sharing and emotional nurturing. Initial outreach will be to the senior age groups but available to all. I know the time has come to help the "silent generation" and those in the "age of conformity" stand up and speak up. It is my personal opinion that they are the ones at greatest risk for
mental and physical disorders associated with this obscure covert form of domestic violence and elder abuse. I would be so grateful to collaborate with you on any ideas you might have to facilitate this project and/or present you as a guest speaker at one of our meetings.
The TEA party meetings are currently being held every Tuesday. The group e-mailing list is now over 700 and attendance nears 150 per meeting, mostly seniors. (Go figure)! Please take a minute to read the additional issues seniors face in Arizona in the blog entry titled: Consumer Rights by Community Type. I am advocating for equal rights for seniors who own "personal property" homes in "private property" retirement communities in Arizona.I need help to help to draft and pass an amendment to a bill which flew through our legislature in 1998 (with lobby help-SB1261) now an
Arizona Revised Statutes; Title 33 Ch. 19 which enables discrimination against retirees constitutional rights in many of the 55+ land lease communities in Arizona. In the meantime, we'll teach them fire arm safety and marksmanship!
Grass roots is alive and well in Gilbert, AZ and we are up for the fight.
I will look forward to your response.
Kara Holt
Active Resort Properties Management Group, LLC
1-800-478-3864 (Toll free)
1-888-316-6074 (Fax)
480-299-7236 (Direct)
