2» - MANCHESTER HERALD. Sat.. Aug. 14. 1982 ..... ' 2 -.-7 -- • . ' Y i ' .! • V - ’ . > '.A,.' ■feV . , ' ■ ■ Swap houses Reservations ■ Curt Smith ■ m M m m .. shakes up GQP] to cut costs aboutBennet i.y ~ 4 Beware of new mortgage trap t . p a g e 3 ... page 11 . p a g e 6 A mortgage trap door has opened wide in the United 1) You may have to pay more in the future than initial­ me in our pocketbooks — in the short, long or indeed in»i. ‘ States — a trap into which you, as a home buyer or a ly (“graduated payments” ). This is fine if you can be any cun. home seller or a realtor, easily may fall. The nation's Your sure your income will zoom upward no matter how soft banks and similar financial institutions, however, can ^ IT M AKKS A .MOCKERY of any idea you may have^i- Chance of rain Manchester, Conn. the economy. If your income levels off or, worse, drops, that this country is moving toward increased local self-‘» sidestep the trap without any trouble. In fact, the trap Money's you can lose the home, your payments, and even then be by late Tuesday was created in nart to help the banks gain from the rule by local elected officials who are supposedly.^ Monday, Aug. 16. 1982 subject to a judgment for the balance less whatever responsive to the needs and desires of local citizens. higher interest payments they can demand from home Worth someone else can pay. This can be quite a bloodbath for — See page 2. , Single copy 25q: buyer-borrowers who hav? the money. If there is any "grand design” to all of this, I don’t ^ ; Sylvia Porter you. comprehend it — and I’m trying. Perhaps the experts injv This report is designed as a warning to you, a buyer, 2) You may have to agree to pay a “variable” interest seller or realtor. Beware of the so-called “creative” the think tanks in Washington can convince me that tbe'^l B pralb rate that depends on factors beyond your control, fac­ mortgage arrangements being made today in increasing hardship is worthwhile for you and me because of a holy,^. tors that you don't know about or don't understand, and grail at the end of the line. ^ ' numbers to spur home sales that simply couldn't be may even suspect are no more than dirty tricks. If on .made if the participants had to depend on a mortgage ty but presumably will not want to live there and will As of mid-August 19^2, though, I don’t discern th e ^ . have two houses to handle, rent, sell or lose. Hardly top of this, interest rates soar, you can choke. grand design and I fear the holy grail may not exist. from a bank or savings institution. Look hard and deep 3) You may have to give the institution a share in the before you sign. what you had in mind when you decided to sell the first (Sylvia Porter’s Financial Almanac for 1983, a com-,^ equity in your home. If its value goes up, you may have prehensive desk calendar and consumer handbook,;^ To give you a quick background, several states have house. tc.pay more — even if you don't get any more money in laws that say if a homeowner gets a mortgage, it can be You might, therefore, decide not to move. You may features Porter’s best advice for saving money and-.» not be able to sell your house without taking a big risk your pocket at all from the increases unless you borrow organizing your budget.. Includes budget worksheets..w. Guerrillas passed on to a later home buyer without penalty. Some the difference and pay still more interest. Again, you’re owners actually took mortgage for this purpose. and perhaps a whopping loss. Send $8.95 plus $1 for postage and handling to<Finaiicial;^ headed for a bloodbath or, if you prefer, you can choke. Almanac in care of the Herald, 4400 Johnson Drive, TliK ll.S. SlIl'KLML COURT, however, recently IF YOU LOOK to the “creative” mortgage, you The impact of the new “selective states’ rights” Fairway, Kan. 66205. Make checks payable to Universal?! knocked out those state laws as far as federally charted may be in for surprises that can hit you hard — and un­ climate may help save many financial institutions from Press Syndicate. ?! savings and loan associations are concerned. Its deci­ pleasantly. the impact of steep interest rates. It will not help you or sion is based on federal statutes, not the Constitution, so it could be changed bv Congress — although chances for may depart that happening in the near future are not bright. They're not even dim. The effect will be to hurt home buyers, home sellers and realtors, but to help financial institutions (banks) that can insist on current steep interest rates on any 6 renewed mortgage. Often, the home buyer can't pay the hundreds of dollars per month these rates demand. This by weekend means less left for the seller — or, more likely, no deal at all. All mortgages probably will be affected because tMk« By United Press International ficial said Sunday. "It is the thing states cannot afford to have state-chartered institutions we will not give up.” at a disadvantage in competing with federal savings and loans. Palestine Liberatien Organizatien The confrontation lines dividing guerrillas trapped in west Beirut the still besieged city between the I'llK “ VII.I.AliN” in the whole situation is the high- will begin leaving the Lebanese Palestinians and Israelis dug in interest-rate level, the result of the Federal Reserve's capital by the end Df the week under around the city and its devastated consumer-oriented policy to curb the rate of inflation London Broil Steaks the agreement negntiated by U.S. refugee camps remained quiet over­ and to destroy the psychology of inflation. BEEF CHUCK-BONaESS 8HOULOER envDy Philip Habib, Lebanen’s night and into the morning. The irony of the whole situation is that while we Hear prime minister said today. For the first time in weeks, the so much about returning to states' rights in this era, in “I expect the implementation of trapped PLO fighters did not fire at this case where state laws favor the consumer, the laws the plan prepared by Mr. Habib at the Israeli jets that made several bite the dust. There certainly is no visible rush to the end of this week at the latest,” passes over the capital. change federal statutes that the Supreme Court says in­ Prime Minister Chefik Wazzan said The Israeli forces encircling validate the state laws protecting consumers from after conferring with the American Beirut also relaxed their siege of the losing their mortgages just because a house is sold. diplomat in Beirut. western sector of the divided "States' rights" becomes merely a slogan. Wazzan said the Lebanese Cabinet capital, allowing in some fresh fruit There could be an incidental benefit for consumers in will meet Wednesday to discuss the and vegetables and medical this Supreme Court decision if it starts a trend toward final mechanics of the evacuation of supplies, but electricity remained examining state laws that levy an undue burden on in­ FRESH-BONELESS BEEF ROUND-BONELESS BEEF LOIN-WHOLE-S TO 74.BS. the estimated 7,000 to 9,000 PLO cut and the Israelis prevented fuel terstate commerce because they restrict free and open fighters in the besieged capital. from entering the west. competition. The Cabinet also will formally call Israel’s flares lit the skies over For instance, many states have a wide variety of LambChops- Sirloin Tip “Formarty on the United States, France and Beirut late Sunday, a reminder that licensing laws for all sorts of occupations that hardly in­ ^59 Chicken 99 2 4 9 Boneless FiM Mignon" Italy to send troops as part of a it retained the option of forcing the A volve threats to public health or safety, yet restrict en­ ShouMer ^ d e Breast Cutlets Roasts B ^f Tenderloins peace-keeping force to supervise the PLO from the embattled city. But try into those fields and raise the cost to you, the con­ 1 BEEF ROUND-BONELESS despite some small arms fire, the FM8H QCMUMC AMERICAN SPRMC 51^ FRESH-MIXED FRYER PARTS ->K9 BEEF CHUCK withdrawal. sumer. These laws often the administered by — of all Lam b C hops-R ib 3 Sirkiin lip Steaks lb A th cease-fire of the siege seemed B o v (K hicken BtHH'k'ss Fop Bladi' Steaks k z H Wazzan’s remarks came as 1 1 ^ FRESHILESSCROUANTITIES79 16) BEEF CHUdi-SONELESSCHUCK OB people — members of the very field involved. The ad­ FRCSN GENUME AMEINCAN SPflMG 1 |HH BEEF CHUCK-BONELESS Beirut’s leftist newspaper As Safir to be holding. Lam b C hops-lxN n 3 C hicken Letts BtHH'k'ss ShouldiT Roasts tb. 1 ministrators understandably resist inviting additional C'idie Steaks Bk IH — which is sympathetic to the PLO Habib said he may return to major competitors into the field. Thus, newcomers are EXTRA MAD < IK • YU FRESH OftrATONTHC GRILL OUCKFIIOEtN Something old phg Chicken Breasts . r - — said the guerrillas would begin Beirut today from Jerusalem to G )h )n ial Franks Wt-aviT Chicki'n Franks ; s 9 9 ' Beef l.her-C'enter Sfiifd a. 7^ easily labeled as unqualified and in need of time- (AAPIEff FRANKS Ui.PKG 1.411 «U FRESH-FRESH-BREASTS'l6REASTS I 29LB2«LB FR02EN-BATTER DiPPEO OR DUTCH FRYE their evacuation of west Beirut brief Lebanese diplom ats on ^ 7 9 Ff«SH OVEN 8TUFFER ' ^ ^ consuming, expensive further education and experience A & P M eal PrankN pfcg I Perdue Chicken Legs , .