Keeping Homes By Taking In Boarders

CBS Evening News: Struggling To Pay Mortgages, Families Filling Spare Rooms With Renters

(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.

[wl7bzh]

I lived in a boarding house over 40 years ago Rent was 15 dollars a week. Minimum wage was a buck twenty-five an hour. If you ever live in one, keep a diary. Some of the stories you''ll have tell would one heck of a novel.

[whitemale08]

I remember living in South America where this is the ''norm''. I even rented one of these ''habiticiones'' for a while.

It''s just another aspect of the Bush/Hannity/Limbaugh-Depression.

Latins in California, Texas and Miami, have been doing this for years.

It''s all part of becoming that great banana-republic that junkyard dog Sean Hannity wants America aspire to.

[pugster]

At least this couple have some smarts.

[rillifane]

"How many spare rooms do Gore and McCain have?"

I wonder why so many people seem to begrudge others their success. Its the constant whine of the loser who seems determined to convince himself that his own failure is the fault of those who have it better.

[rudy6543]

Ah...stories like this must be music to the ears of neocons.

[debinok1]

This is the wave of the next few years, more generations of families will be living together to save costs, those without family or family that is to far away will take boarders. It is a sensible approach to tight finances, and may even help strenghten families in the process.

[hammaann]

Why, in the story: "Keeping Homes By Taking In Boarders" was it reported that a woman lost her business "because of the economy"? The reporter had no idea why the woman''s business actually failed, now did he?

How about you just report the FACTS and stop repetitively POUNDING on whatever the current THEME might be? Are you TRYING to get more and more people to panic. It certainly seems as if you are.

[whitemale08]

"How many spare rooms do Gore and McCain have?"

I wonder why so many people seem to begrudge others their success. Its the constant whine of the loser who seems determined to convince himself that his own failure is the fault of those who have it better.




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Posted by Rillifane at 08:32 PM : Dec 24, 2008--

Don''t confuse those who legitimately complain against a system based on ''structure-financing'' wothless derivates used by hedge funds, buy-out-firms and locusts funds to loot the American people.

The whole idea of "it hasn''t happen to me yet...'' is selfish and your fellow man will curse you for it until the same plight happens to you.

[puzzler125]

I think she''s being grossly overcharged! $750 for only one room and a bathroom? $200 extra for dinners? While I think this is a terrific idea in general for those who are trying to keep their homes $750 is way more than I pay for a 590 square foot apartment with a small den and dining area.

[chromenun]

I have been renting out rooms in my home for the past year and a half. I had one boarder that was here for ove a year, and was the nicest, most wonderfilled person to have around. But I also had a room mate from HELL for 8 months, and it took me forever (it seemed) to get her to move out. There is just so much a person can take, but it sure is hard when you have to find a new room mate.

I hope the next one is a nice, easy going person, but ya never know. But if I don''t rent the rooms out then I cannot eat or pay my utilities. I work fulltime at the same job for over 7 years. My situation was caused because my homeowners'' insurance was cancelled due to Hurricanes Ivan and Katrina (no damage, just location) and the only company I could find to insure me was 4 times as high as I had been paying. Also my property taxes doubled in the past year. My mortgage payment, which is a fixed rate, which was $567.00 per month, skyrocketed to $911.00 per month!!! And to think I raised two children as a widow on much less than I make now, and now I can hardly take care of just me. I own my own car, do not have credit cards, and have tried to pare down on everything I possibly can.

At this point, all we can do is to help each other out as much as possible.

[jelato]

I moved in with my parents to help make it easier for them. Not financially, but I am their "feet". I run for them, get their coffee, cook light meals, figure out their medical stuff. I have enjoyed the last year. Now my daughter has moved in with us. My parents enjoy the liveliness in the house now. My daughter is in and out and it makes things much more "fun" for my parents. Of course there are adjustments. Also my parents can take care of their personal needs - so I dont deal with that. But all things said I think people should try it.

[emelder]

morphndol8 at 11:10 PM : Dec 24, 2008

... and your text has WHAT to do with this article???

[flsunjnky]

It has everything to do with this article you idiot!

[rudy6543]

Hey you idiots: robertzit, selina freak, and morphinedull. Your spamming has been reported as a violation of terms. Go spam someone else.

[rudy6543]

Posted by AnitaY417 at 03:01 AM

Good one! You got me laughing!

[nothappyatall]

I wonder why so many people seem to begrudge others their success. Its the constant whine of the loser who seems determined to convince himself that his own failure is the fault of those who have it better.

Posted by Rillifane "

Umm, how do you think people make money on things like the stock and commodities markets to GET rich? In order for someone to become rich someone ELSE has to LOSE money- it doesn''t grow on trees!
For someone to make a million bucks in commodities or stocks, someone else lost their life savings- or someone else was stomped on by executives on their climb to the top, like the laid off employees a week before Xmas to max 4th qtr profits for the STOCKHOLDERS, THATS WHY.

[nothappyatall]

chromenun , quit your whining. My mortgage payment in San Diego (only 1500 sq feet, old house), is $3300 a month.

Posted by AnitaY417"

Holy chit! what a rip off! I bought a 2 b.r. 1930 farmhouse, 1200 sq ft plus full basement, on a HALF ACRE of land for UNDER $10,000 and dont have a mortgage. Prices on older houses in the Midwest are dirt cheap!

My taxes after homestead credit are around $125 a year.

I have city water, sewer, garbage pickup which all together is under $25/mo in this midwest town of 1,800.

A building permit here cost $5 for a garage/shed etc to $20 for a house.

My electric here is a little over 5 cents a KWH, man- you Californicates are being ripped off badly- your problem is you don''t know how to SHOP AROUND.

The crime rate here is such we have one police chief and 2 officers, people don''t bother locking up or shutting cars off at the store- nobody does anything to your stuff.
World- class modern hospital edge of town too.

There''s no annual smog check dragging you in like sheep, my ''94 Olds costs $20 a year for the registration, I pay around $130 a year for car insurance.
Your problem is people dont use your heads and way overpay on all of that because you all live in the WRONG state and the WRONG areas nad that''s why your freaking mortgage is $3300 a MONTH and car ins is $1800 and buildin gpermit is $5500 and on it goes.

[rillifane]

"In order for someone to become rich someone ELSE has to LOSE"

Posted by newster1

Apparently you don''t understand how markets work.

While commodities trading is a more or less zero sum game for speculators the stock market is not. Nor, of course, are the stock and commodities markets the only way that people make money.

And if stockholders get rewarded while employees are not then I would note that the jobs for the employees wouldn''t have existed in the first place if the stockholders hadn''t risked their money. And yes, the job of executives is to make sure that the stockholders profit and not to reward the employees at the expense of the stockholders. Of course, a wise manager strikes a reasoned balance between the needs of both since that produces the higest profits in the long run. But a business does not exist to be nice but to make money.

[rillifane]

"The whole idea of "it hasn''''t happen to me yet...'''' is selfish and your fellow man will curse you for it until the same plight happens to you."

Posted by whitemale08

If I was foolish enough to base my opinion on what has or has not happened to me personally then your comment would make some sense. But then I try to have a more rational basis for forming opinions. You apprently do not labor under that burden of intellectual honesty.

The number of houses owned by either McCain or Gore (to which my commemt was addressed) has nothing to do with the current state of the nation''s finances nor has either man taken part in any "looting" of the people. McCain''s wife''s family made money selling beer and Gore inherited his father''s shares in Occidental Petroleum. Making money selling beer and gasoline has not a thing to do with hedge funds (not that hedge funds are to blame for the current situation).

Indeed, if there is anyone to blame it is the ordinary citizen who wanted, among other things, to own a house bigger than he could afford and demanded that a way be found to borrow the money to do so.

That we had built an economic house of cards was all too apparent quite some time ago. There''s plenty of blame to be spread around including a lot that falls on very rich people who should have known better. But the notion that the poor innocent average citizen has been screwed by a tiny cabal of wicked capitalists is drivel.

[carlylaine]

newster1: You are one of the liberals who want cookie-cut-people to all have the same conveniences and material things graciously handed out from the government.

You are a socialist and full of class envy.

[rudy6543]

Indeed, if there is anyone to blame it is the ordinary citizen who wanted, among other things, to own a house bigger than he could afford and demanded that a way be found to borrow the money to do so.
****************

You''re full of krap, Rif! You''re just another Limbaugh follower bent on blaming regular people for the mess created by greedy bankers and corporations that feed off of our tax dollars. We already have the case of a man who received a pardon from Bush and then had it revoked. This man was guilty of creating mortgages with hidden costs, etc. This is exactly the kind of predatory lending practices that have led to the current situation. As far as I am concerned people like you don''t deserve to live among the regular people of this country. Go live somewhere else.

[rudy6543]

newster1: You are one of the liberals who want cookie-cut-people to all have the same conveniences and material things graciously handed out from the government.

You are a socialist and full of class envy.



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Posted by CarlyLaine at 05:18 AM

Since Newster is 100% correct, you must be one of those people he is referring to.

[xcuja]

When I was young in the depression, taking in borders was a lot safer- than now.

[barbaraf4]

My Christmas Wish is that instead of bailing out the big guys (who are miss-using the windfall with abandon), the government send a one-time rebate of $10,000 untaxable dollars to every legally registered citizen of the United States.

Maybe, just maybe, this would save some homes or save some jobs.

Anyway, Merry Christmas, everyone. Peace on Earth, Goodwill to all.

[wl7bzh]

a multi-bedroom mobile for people on social security willing to share expenses may be the survival wave of the future.

[wl7bzh]

Make that a multi-bedroom mobile home..typo

[zzy-izzy]

Anitay417 do not know what you make a year but there are a lot of places in the USA that can not pay $3300 per month

[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

[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.

[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.

[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?

[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.

[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.

[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.

[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.

[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.

[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.