Keeping Homes By Taking In Boarders

(CBS)  Heather Townsend and Marlene Mazzi sound like mother and daughter when they talk about what's for dinner on any given evening. But they met just three months ago when Heather started renting a room in Marlene's house.

Is she surprised by how much things have changed?

"Oh, yeah," Marlene said.

Her husband can't find carpentry work. She lost her business due to the economy. Faced with losing their home, they posted an online ad looking for a boarder, CBS News correspondent Ben Tracy reports.

Unable to afford L.A.'s high rents on her slumping sales job salary, Townsend now pays Marlene Mazzi $750 a month for a bedroom and a bathroom.

"I pay her $200 extra dollars and she makes all my dinners," Townsend said.

And the table is full, ever since Mike Szapko, a chiropractor from Montana, moved in five weeks ago - making close quarters even tighter.

"I've not had to worry about people saying, 'turn the television off' or, 'I'm going to bed at 9, can we be quiet.'" Townsend said. "You know, it's odd."

Marlene's daughter Stephanie is sacrificing more, giving up her bathroom to share one with her parents and her cousin, who moved into what used to be the den.

"You go from living on your own with your family having your own privacy to like all of a sudden it's really fast and it all changes," Stephanie said.

"If you didn't rent out the rooms, if that money wasn't coming in, what would happen?" Tracy asked Mazzi.

"At this moment, I would be on the street. I'll be homeless," Mazzi said.

More and more Americans need help paying their mortgage or their rent.

Roommate postings on Craigslist shot up from 259,000 last year to 419,000 this year - a 62-percent increase.

Laura Fanucchi helps run one of the largest homeshare programs in the country.

"People have lost their retirement incomes and they've lost their jobs and they want to keep their home," Fanucchi said.

With a record one-in-10 mortgage holders now behind on their payments, even some who live in million-dollar homes open their doors to strangers.

"It's like a bed and breakfast without the breakfast," said Rick Lautenbacher, who charges $390 per week for a room in his $2 million Venice Beach home. He needs help with the mortgage as he struggles to sell in a down market.

"I'm just waiting for things to get better," Lautenbacher said.

As for Marlene Mazzi, she's hoping to get back to the life she used to share with only her family.

[rillifane]

"You''''re just another Limbaugh follower"

Posted by rudy6543

And you jump to idiotic conclusions. I have no use for Limbaugh, never voted for George Bush, and spend my spare time in Paris (something a Limbaugh fanatic would presumbably never do).

The truth is the truth is the truth no matter that it doesn''t fit into you sophmoric view of economics or you paranoid delusions about cabals of bankers.

[ajmystic]

I know all about the housing crunch firsthand. My brother lost his home and moved in with my husband and me. My son and grandson have moved in also. My garage no long is capable of housing my car, since it is now a storage facility for my brother''s furniture and appliances and some of my son''s things. They may not be strangers, but it is still the same principle. I think this is going to be a trend for the next couple of years at least. Many people will have to convert dens or family rooms into bedrooms to accomodate either strangers who rent those rooms, or family members who need a place to live after losing an apartment or house. As long as the mortgage gets paid, it is still a good thing.

[httpwwwnews]

I know of an enterprising man (who is in his 20''s and in the Navy) who has made a business of buying forclosed or tax lien sales houses then converting them to boarding houses. He buys big 4 to 6 bedroom houses, puts in top of the line appliances, cable, Internet, etc, turning the living, dining and kitchen rooms into common rooms with posted rules. He employs managers to manage them and gardeners to keep up the repairs and landscaping. This guy is making a killing. He started with 1 house, now owns about 15, and is now raking in the $$$$.

It''s possible to live, even thrive in this economy...you just have to work at it.

[httpwwwnews]

This isn''t a brand new trend in California. Young people have been roommating for the past few years. You will see 3 or 4 twenty-somethings in an apartment, house or condo. Their salaries aren''t high enough after car payments, credit card bills, and high car insurance rates, to get the deposits saved for rent and utilities, and get in a place on their own in California''s high priced rental markets. Many can''t leave home. It''s been a landlords market for the past 6 to 8 years, especially after the huge fires that made people rebuilding seek rentals. Many Mexican families live several families to a house as well because they are mainly minimum wage earners. Now, middle aged and middle income families are beginning to move into this mode from the staggering economy.

Look for it to worsen after the new year when the holiday bills come in- there was no lack of shoppers at the malls and department stores judging by the crowds and traffic.

[tooncestango]

If anyone would like to look for a home sharing program in their community, please visit www.nationalsharedhousing.org and click on the Directory tab to locate each State. There are nearly 100 nonprofit organizations throughout the Country that help to interview, screen and match housemates together. If you have further questions, please feel free to email [e-mail] - Laura Fanucchi at HIP Housing in San Mateo, CA who was quoted in this story.

[barbaraf4]

"I am going to ride this bad economy out and come back stronger than ever!!!" Posted by vitterdidder
~~~~~~~~~~~~
An excellent plan! It is difficult to watch others squander their money, especially when we are in open-ended badtimes.

Our neighbors, a young couple with two children, who have bounced from one financial crisis to the next for as long as we have known them, received a sizeable Workers'' Comp settlement earlier this year. So far, they have put in a swimming pool, financed a $55k automobile, redecorated the interior of their house (including new furniture) and, oh, yes.....gotten pregnant with their third child. Also, they blew all the stops for an over the top Santa Claus run. To the best of my knowledge, they are running up debt now, because all the cash is gone.

I think reality will be painful whenever they reach that point.

[vitterdidder]

About six years ago we had some windfall cash and even though we lost the mortgage deduction we decided to pay off our mortgage. My wife at the time (now my ex) wanted to take a Hawaii vacation, I wanted to pay off mortgage. Nasty fight but I prevailed. Now it looks like I am the smart one. She and her dorky new husband are struggling to make ends meet but I am in good shape with a paid for house that is worth 2.5X what I paid for it even with the recent drop in values. Also I have some money set aside for emergencies. Even when times are good, people need to prepare for the worst. Lots of the people who are in over their heads now simply assumed the good times would continue to roll. I am going to ride this bad economy out and come back stronger than ever!!! My ex probably regrets leaving me now but that''s life and let''s move on, ok?

[jackp32]

You do gooders need to take in paroled *** offenders who otherwise cannot find suitable housing because they cannot live near schools or places where children congregate.

[zzy-izzy]

xcuja now it would take more than you would make to pay the guards to watch out for a person now and you would have to have a guard to watch the guard.

[zzy-izzy]

Makes no difference where you live if your house payment is more than 25% of your net income you are in over your head